For these which can be newer members of the US Financial institution checking/financial savings/bank card/brokerage ecosystem, almost definitely for the as much as 4% money again rewards from their Neatly bank card (present phrases for brand spanking new candidates are poor, however the grandfathered phrases are nonetheless wonderful), you could select to park some property of their self-directed brokerage arm with the intention to meet the (grandfathered) qualification necessities. I personally did, and it has been understanding high-quality.
Notably, as with many brokerage corporations, US Financial institution pays reasonably pathetic charges on idle money (0.23% APY as of 5/15/25). The money sweep that we overlook about is a dependable revenue supply for them. I are likely to overlook, everybody tends to overlook.
Thus, after I want to maneuver property to a brand new brokerage, my two most popular choices are my holdings of Berkshire Hathaway (BRKB) as a result of they don’t pay out any dividends in any respect and iShares 0-3 Month Treasury Bond ETF (SGOV) as a result of it pays a aggressive yield from T-Payments (that’s additionally exempt from state/native taxes). The ultimate contact is to arrange automated dividend reinvestment on the shares to keep away from dropping curiosity on idle money sweep. This fashion, every month the curiosity paid out is robotically reinvested into extra shares of SGOV on the present market worth.
Incomes a ~5% return from SGOV over the past 12 months was significantly better (20X higher!) than incomes ~0.25%.
For US Financial institution brokerage, there isn’t any on-line possibility accessible to set this up. It’s essential to name them on the cellphone and request it manually. The cellphone quantity for US Financial institution Wealth Administration Brokerage Providers is 800-888-4700. There have been no sales-related hassles and it solely took about 5 minutes. Well worth the effort. Now I don’t have to fret about making manually trades or manually transferring out the idle money each month.