feh wrote:The default money market account used by Fidelity seems to be SPAXX. It yields next to nothing, but nevertheless has an expense ratio.
hayling wrote:feh wrote:The default money market account used by Fidelity seems to be SPAXX. It yields next to nothing, but nevertheless has an expense ratio.
Thanks for pointing this out. I didn't realize that SPAXX has an expense ratio; that's what I'm using as well. I'm interested in hearing responses to this question. Looks like FDRXX (Fidelity Cash Reserves) has a slightly lower expense ratio (0.38% vs. 0.42% on SPAXX).
According to the "What are the investment options for my core account?" FAQ on this page: https://www.fidelity.com/trading/faqs-about-account you apparently can choose between SPAXX, FDRXX, or a "FDIC Insured Sweep Account". Not sure what that last option is about.
mbenz1997 wrote:So I just got off the phone with fidelity and they told me the yield is after the expense ratio is taken out.
For fmoxx, that means that your yield is 0.01% after they take their expense ratio, so you aren't losing any of your capital.
To OP- good catch. I've had a fidelity account for 8 years and never once caught that...then again, I watch my money like a hawk and would have noticed if any had gone missing
MN Finance wrote:Brokered Cds are basically bonds. Youll likely be better off in a high yield savings account or at a traditional bank or credit union.