Bigchip01 OP t1_j6ljann wrote on January 31, 2023 at 4:19 AM

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 on January 31, 2023 at 4:51 AM

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.