I'm testing out Everbank (TIAA) right now:Please tell me where I can get a high yield account with ACH debit autopay? And no 6 transactions per month restrictions.The Synapse/Evolve situation is the perfect test case for this, and it would apply to Vanguard/Fidelity as well. People are just more comfortable with Fidelity/Vanguard but there is still risk.Perhaps this adds a new angle to that.This point has been made multiple times upthread.
If using an FDIC-insured sweep account at Vanguard or Fidelity, and there is a record-keeping issue, what is the status of coverage? If the banks holding the assets are solvent, it will not be an FDIC insurance issue. If the assets are at a bank, does SIPC coverage still apply? Since it is a feature used with a brokerage account, perhaps it would.
Honestly, just spread your cash around healthy FDIC insured banks with high rates. I don't know why people try so hard to make Fidelity/Vanguard cash accounts work. Keeping all your money (cash and investments) with one institution seems like a poor idea, and it's not even that much more convenient.
https://www.everbank.com/banking/performance-savings
I can't find anything about a 6 transfers per month restriction for them. They also have a checking account you can attach it to in case you need that. They have high transfer limits and seem promising for a hub account.
Yes, but still. Just seems like a lot of uncertainty for not that much gain. The fact that nobody really understands which government insurance should apply where in the transaction flow. I feel that bogleheads should be smarter than keeping all their eggs in the same basket anyway. Everyone has their own risk tolerances, but I feel like this case has shown us maybe it's better to keep things simple (regular banks with no middle man). The more parties there are the riskier it is, even if it's small.Maybe. That it is a brokerage sweep is a potentially relevant difference.
Statistics: Posted by Helium — Fri Jul 05, 2024 1:39 am — Replies 261 — Views 21603