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Ameritrade's money market rates. Am I missing something?

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   posted: Mar. 11, 2008 @ 1:46p
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I decided to find out how much my idle cash is making in my Ameritrade account, and here's what I learned:

Cash Sweep Vehicles Interest Rates
TD Bank USA, N.A. Money Market Deposit Account Rates

Dollar Range / Interest Rate / Annual Percentage Yield
$0.01-$4,999 / 0.04999% / 0.05%
$5,000-$24,999 / 0.04999% / 0.05%
$25,000-$99,999 / 0.09995% / 0.10%
$100,000-$199,999 / 0.74743% / 0.75%
$200,000 and above / 0.99545% / 1.00%

Is this some sort of joke? You need to have 200K on deposit just to make 1%? Aren't money market accounts supposed to yield MORE than your average crappy savings account? How can this possibly be a viable alternative to a CD? Please enlighten me.

   posted: Mar. 11, 2008 @ 1:47p

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   posted: Mar. 11, 2008 @ 2:40p
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You didn't check the rates before you parked your cash there?

Bet you won't do that again.

   posted: Mar. 11, 2008 @ 2:41p
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Step-by-step enlightenment.

1. Ask Ameritrade
2. Rates have been going down lately
3. "I decided to find out"? - you should probably learn of the return on your investment before depositing money...

   posted: Mar. 11, 2008 @ 2:50p
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They have different funds for your cash. The basic fund, as you've noted, pays next to nothing. The TDAM Money Market Portfolio (Class A) is currently yielding 2.39%.

   posted: Mar. 11, 2008 @ 3:19p
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dgulkis, thanks for the info. I'll call them up and see if they can change my sweeping setup.

For the clueless who are giving this red, Ameritrade is a brokerage firm. You don't put money in there just to make interest. It's the money that rests between trades that gets swept into an interest-bearing account until your next purchase. So no, I didn't "park" my cash there, and no, rates haven't been going down all the way down to 1% APY.

   posted: Mar. 11, 2008 @ 3:49p
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Knocks said:For the clueless who are giving this red, Ameritrade is a brokerage firm. You don't put money in there just to make interest. It's the money that rests between trades that gets swept into an interest-bearing account until your next purchase. So no, I didn't "park" my cash there, and no, rates haven't been going down all the way down to 1% APY. I think you just answered your own question - what was the point of your post?

   posted: Mar. 11, 2008 @ 4:04p
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Sorry, Knocks, but it sounds like you are the only clueless in this forum.

You might want to inquire about TD Ameritrade TAP so you can park your sweep in higher yielding stuff.

If you don't need FDIC protection, it is possible to put money into RYPQX, or have money swept into RYPQX. Current yields can be found on http://www.reservefunds.com/ or by weekly e-mail updates.

Now, I could care less, but why would you red the hand that feeds you?

   posted: Mar. 11, 2008 @ 4:13p
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pmanager said:I think you just answered your own question - what was the point of your post?

dgulkis answered my question. They have other accounts, you just have to ask for them.

   posted: Mar. 11, 2008 @ 4:15p
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tolamapS said:Sorry, Knocks, but it sounds like you are the only clueless in this forum.

You might want to inquire about TD Ameritrade TAP so you can park your sweep in higher yielding stuff.

If you don't need FDIC protection, it is possible to put money into RYPQX, or have money swept into RYPQX. Current yields can be found on http://www.reservefunds.com/ or by weekly e-mail updates.

Now, I could care less, but why would you red the hand that feeds you?

Because the question has already been answered in a less patronizing way.

   posted: Mar. 11, 2008 @ 5:01p
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It only became patronizing once you started "patronizing" respected members around here. Gotta look into the mirror occasionally. Anyway, I don't want to pick a fight with you. I hope you found what you were looking for.

   posted: Mar. 11, 2008 @ 5:31p
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I'm not surprised with any of this actually. Typical Fatwallet fare, where a couple of people jump in to answer what they think is an obvious question and scream "google it," "repost" or "you should have known better" without understanding the actual post.

So-called respected members make plenty of idiotic posts, but I guess we all kind of like it, because we keep coming back for more.

   posted: Mar. 27, 2008 @ 1:03p
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what do you think of investing in RYPQX? any catches? they claim no fees and you can automatically sweep it in there or out

   posted: Mar. 27, 2008 @ 2:46p
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I use RYPQX. It wasn't presented to me as a sweep option. For my account, I have to move money in and out of it. The money you move out is available for trading immediately. There haven't been any transaction fees to buy or sell. The catches???

I once tried multiple moves in one day and there was a delay, missing a trade.
It isn't FDIC insured, so breaking the buck is always possible.
The way interest rates are moving, I'll probably be paying them interest by summer

   posted: Apr. 15, 2008 @ 12:36p
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Knocks said:I decided to find out how much my idle cash is making in my Ameritrade account, and here's what I learned:

Cash Sweep Vehicles Interest Rates
TD Bank USA, N.A. Money Market Deposit Account Rates

Dollar Range / Interest Rate / Annual Percentage Yield
$0.01-$4,999 / 0.04999% / 0.05%
$5,000-$24,999 / 0.04999% / 0.05%
$25,000-$99,999 / 0.09995% / 0.10%
$100,000-$199,999 / 0.74743% / 0.75%
$200,000 and above / 0.99545% / 1.00%

Is this some sort of joke? You need to have 200K on deposit just to make 1%? Aren't money market accounts supposed to yield MORE than your average crappy savings account? How can this possibly be a viable alternative to a CD? Please enlighten me.

I was annoyed too, not that I keep much in it, but I called and they gave me this:

TD BANK USA, NA MMDA FDIC INSRD, NOT COVERED BY SIPC

Effective April 1, 2008
Dollar Range Interest Rate Annual Percentage Yield
$0.01 - $4999.99 0.24971% 0.25%
$5,000.00 - $24,999.99 0.498865% 0.50%
$25,000.00 - $99,999.99 0.99545% 1.00%
$100,000.00 + 1.48979% 1.50%

   posted: Apr. 15, 2008 @ 1:17p
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Knocks said:I'm not surprised with any of this actually. Typical Fatwallet fare, where a couple of people jump in to answer what they think is an obvious question and scream "google it," "repost" or "you should have known better" without understanding the actual post.

So-called respected members make plenty of idiotic posts, but I guess we all kind of like it, because we keep coming back for more.

You forgot one "Did you search"?

TDAmeritrade: highest yield for temporary cash with them?

There are, of course, many many more. Red for you, b-bye, plonk.

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