![]() “Some firms have removed the option of a higher yielding money market fund as an option for their cash sweep, thereby forcing investors to take additional steps to get a better rate for their cash,” said Kathleen Murphy, president of Fidelity Investments’ personal investing business. See additional important comparative details below. APY is the amount of total interest earned on a bank product in one year. ![]() The default sweep APYs are sourced from each firm’s website as of date indicated assuming a $10,000 investment with a comparable brokerage account. Yield as of (Yield may vary due to market conditions)įigures show yield as of 8/5/19 (Yield may vary due to market conditions) see for more recent yields The Fidelity fund yield is the average amount earned by the fund after expenses over the past 7 days, annualized as of the website published date indicated. With Fidelity’s commitment to providing investors with unparalleled value and choice, cash investments at Fidelity could earn 47x more than TD Ameritrade, 10x more than Charles Schwab, and 27x more than E*TRADE cash sweeps (see table below). Fidelity has made it easy for customers by automatically giving them the higher yielding option at account opening, while also providing other investment options for those customers who prefer it. ![]() BOSTON-( BUSINESS WIRE)- Fidelity Investments ®, the largest retirement and brokerage firm with nearly $8 trillion in total client assets, today announced it has challenged conventional industry practices by automatically directing investors’ cash into higher yielding options available for brokerage and retirement accounts as well as providing product choice – all without any minimum requirements.įidelity’s approach is contrary to typical industry practices of defaulting customers’ cash into a low-yielding product – often at an affiliated bank – with no other option in what the industry calls a “cash sweep.” Recent customer research shows that many investors don’t focus on the rate paid on their cash when they open an account and, too often, they don’t take action later. ![]()
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