No. of Recommendations: 7
None of the garbage hoops to jump through like banks that require direct deposit and 10+ debit card purchases every month to get the high rate.
At Fidelity.
1) Open a brokerage account, select SPAXX (the default) as the core position for un-invested cash. SPAXX is currently yielding 5.00%. All your "checking account" deposits go to that account, where Fidelity will put the money into SPAXX.
2) Open a Cash Management Account (CMA), get a checkbook and ATM card.
Select self-funded overdraft account to be that brokerage account.
Also select that account to be the low-balance funding source.
Set the low balance trigger to $10.
When you write a check which causes an overdraft, Fidelity instantly pulls the shortage from the brokerage account, which will pull it from SPAXX.
When your balance is below the low-balance amount ($10) at the end of the day, Fidelity will pull enough (minimum $250) from the brokerage account, which will pull it from SPAXX.
Damn clever way to earn Treasury rates on your checking account balance.
To guard against theft/fraud, do not have any substantial investments in that brokerage account. Maybe just a couple of SPY shares.
