Personal Finance (Not Investing) • Which typie of Fidelity account?

How much is the FDIC-insured core position paying, compared to the MMF core of the brokerage account?

Fidelity CMA rates 2.69% (2.72% APY) for FDIC vs. 4.97% 7-day yield for SPAXX

Help me out here.

SPAXX 7-day yield is 4.97%, however the YTD returns are 1.08%, which is < 2.69% on the CMA.

Which number should I be paying attention to, since I'm considering closing one of my CMA and opening a brokerage with SPAXX as the core.

the 7-day yield is telling you something about the projected annual yield of SPAXX over the next 12 months using data from the last 7 days. It is estimated to be 4.97% for SPAXX

That's a yearly yield, not monthly.

if something might yield 5% annually, what is the monthly yield? Perhaps around 0.407%

so far we have had 2 months in 2024, so the return so far YTD might be about (1.00407^2) = 1.008%
with 3 months it would be 1.00407^3 = 1.012%

So I think the YTD you see is just reflecting that we haven't had all the months in 2024 yet

I imagine the YTD return on the FDIC-insured option in the CMA is not 2.69%, right? It's just that the yield is 2.69%?

Statistics: Posted by muffins14 — Wed Mar 20, 2024 12:21 pm — Replies 20 — Views 1058

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