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Old 08-02-2018, 09:31 AM
 
Location: Silicon Valley
2,760 posts, read 1,214,346 times
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If you buy a Wells Fargo CD through Fidelity, you get a better rate.

That's what I hate about retail banks...nothing's sacred anymore.
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Old 08-02-2018, 09:53 AM
 
Location: Twin Cities (StP)
3,007 posts, read 1,709,643 times
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What if I let it sit in a Fidelity Brokerage Account without investing it? I already have one for my companies stock purchasing program.
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Old 08-02-2018, 09:55 AM
 
Location: Silicon Valley
2,760 posts, read 1,214,346 times
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A company stock purchasing program wouldn't be in a brokerage account.
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Old 08-02-2018, 10:00 AM
 
Location: Twin Cities (StP)
3,007 posts, read 1,709,643 times
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Quote:
Originally Posted by artillery77 View Post
A company stock purchasing program wouldn't be in a brokerage account.
From what I can tell every 6 months my stock plan account buys discounted stock and put it into an individual investment (brokerage) account.
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Old 08-02-2018, 10:50 AM
 
Location: Silicon Valley
2,760 posts, read 1,214,346 times
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It's possible. In whatever the account is, your cash balance needs to sit in a core position. That core position will have a yield on it. That's how much your money should be making. When you open an account you can choose between a government and non-government one.

I don't know the stock program amount, but just don't mix money you have free and clear with something that's restricted. Remember, if you make a mistake in finance, you lose the money and if your broker does it....you still lose the money.
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Old 08-02-2018, 11:08 AM
 
Location: Twin Cities (StP)
3,007 posts, read 1,709,643 times
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Quote:
Originally Posted by artillery77 View Post
It's possible. In whatever the account is, your cash balance needs to sit in a core position. That core position will have a yield on it. That's how much your money should be making. When you open an account you can choose between a government and non-government one.

I don't know the stock program amount, but just don't mix money you have free and clear with something that's restricted. Remember, if you make a mistake in finance, you lose the money and if your broker does it....you still lose the money.
I really appreciate the responses.

By restricted do you mean can't withdraw without paying a penalty? If so then the money tied up in my companies stock is not restricted once purchased. Last purchasing period I sold it right away and transferred it to my checking account (regretting this decision as the stock has done really well since).

I'm just wondering if I will yield more returns if my money sits in the brokerage account vs my Wells Fargo savings account (not to mention the opportunity I have to invest that money)
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Old 08-02-2018, 11:25 AM
 
432 posts, read 178,959 times
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Wells Fargo is a bank and a bad one at that.
Fidelity offers a bunch of options including access to national CD's, if that is what you choose. They also have high interest prime money markets that mimic CD's of shorter duration, but with much more liquidity. I wouldn't think twice. I would move my money to Fidelity. If fact with a cash management account, you can do almost all your banking with Fidelity as well, credit card, ATM, checking, etc.
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Old 08-02-2018, 11:53 AM
 
5,461 posts, read 6,129,964 times
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I just bought Wells Fargo 2 year CD's at 2.8% through my stock broker. They are FDIC insured, so I felt the risk was acceptable.


Whatever you do with the money, it is more important to preserve what you have for the down payment, than risk it by trying to "earn" money on it. You NEED that money to be around in two years. Don't speculate. Make sure whatever you invest it in is insured. A brokerage account is 'insured' against fraud by the broker, but the underlying investments, like a bond fund, are NOT generally insured.
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Old 08-02-2018, 12:07 PM
 
Location: Sector 001
7,143 posts, read 5,950,516 times
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One of the safer, higher yielding oil/natural gas trusts is Cross Timbers, ticker symbol CRT. You could also buy a safer, high yielding stock like AT&T or a blue chip index fund. I wouldn't get too aggressive here because I think the market is overvalued.

The yields on short term bonds are doing alright at the moment as well.. you could simply buy some savings bonds or other government issued notes.

U.S. 2 Year Treasury Note, BX:TMUBMUSD02Y Quick Chart - (TPI) BX:TMUBMUSD02Y, U.S. 2 Year Treasury Note Stock Price - BigCharts.com

You could also try municipal bonds which are federal tax exempt.

http://bigcharts.marketwatch.com/qui...1&show=&time=8
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Old 08-02-2018, 02:10 PM
 
Location: Twin Cities (StP)
3,007 posts, read 1,709,643 times
Reputation: 2293
I really appreciate all of these responses. Has anyone ever dealt with Ally Bank?

It appears that their APY is 1.45% which seems too good to be true.
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