Brokers to Investors: Your Cash Ain’t Nothin’ But Trash
https://blogs.wsj.com/moneybeat/2018/03/09/brokers-to-investors-your-cash-aint-nothin-but-trash/ [blogs.wsj.com]
2018-03-10 03:20
The Federal Reserve has driven short-term interest rates up a full percentage point since late 2016; one-month Treasury bills were yielding 1.6% this week. But you’d never know any of that from looking at the returns on the cash in your brokerage account.
The move is intended to encourage investors to scrutinize the returns on their cash more carefully, says Rene Kim, a senior vice president at Schwab who oversees cash strategies for the firm’s clients.
PSA: the default doesn’t pay shit.