Where to put short term cash
I recently realized that Citizens is paying 0.5% on their senior checking account. That is substantially more than the 0.1% that Fidelity is paying on their Money Market funds. Plus you get FDIC insurance at Citizens. Since it is easy to move money between accounts, I keep most of my cash that is waiting for other investment opportunities at Citizens.
Also, I found out that Fidelity has a short term CD option for cash, rather than their Money Market fund. Given that yields are so small, you might as well get the security of FDIC insurance. I recently looked at where Fidelity is investing its Money Market fund and is was over 60% foreign entities. Why take that risk for such a tiny yield.
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