Submitted by Bigchip01 t3_10pk023 in personalfinance
Bigchip01 OP t1_j6ljann wrote
Reply to comment by FckMitch in How do you buy t-bills and ladder on Fidelity? by Bigchip01
Would this be more advantageous to have the money sitting in cash management to get interest versus the brokerage account?
altmud t1_j6lmufj wrote
They're both brokerage accounts. For the "Cash Management" account, you would earn interest (currently 2.21%) on cash that is "swept" to various FDIC-insured banks, whereas for the other type of brokerage account you would earn dividends on cash in a Fidelity money market fund (probably SPAXX, currently yielding 3.95%).
You can buy T-Bills in the same manner with either type of brokerage account, so choose whichever one fits any other needs you might have.
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