Withdrawals from savings accounts count towards the 6 transaction limit per month. That includes overdraft protection. My CU, Star One, offers much 3.25% without a dollar limit, but I'm still using the CMA due to lack of transaction limit and higher rates on MMFs.DCU offers automatic fee free overdraft protection from savings account, and the savings account does pay decent interest rate. I think many other credit unions do the same.All that said, the feature that is great about the CMA is the automatic liquidation from money market accounts to cover debits and the ability to have a money market as the core cash position. There's a certain amount of money that I have to always have sitting in my checking account to cover outstanding checks. It is super irritating to earn 0% interest on that, in an era of high interest rates. When interest rates were close to 0%, I got it. But then they went up to 5% and the banks just pocked all of that, they don't even give customers a measly 0.5%. That level of greed is what pushed me into the CMA.
I don't really know a way to reproduce that feature of Fidelity's CMA. I already had money in money market accounts anyway for near term, but not immediate. spending purposes. But I don't know a good other option for earning interest on the balance I need to always carry in my checking account. So I guess I'm torn.
[They have a variety of savings accounts, the Advantage Savings account pays 3.56% now. The Primary savings account earns 6% on first $1,000 only, but some 0.01% on the excess]
Not quite CMA, but for the purpose you outlined above, may be it could work?
Statistics: Posted by madbrain — Tue Dec 10, 2024 7:50 am — Replies 865 — Views 62504