![]() We live in Missouri and our effective state tax rate for the 2022 tax year was 5.1% and our effective federal income tax rate was 17.0%. Looking at the 7-Day SEC Yields as of 6-2-23 it shows as follows: We have been adding funds to our ME account to get the average 90-day balance back to $20k for the free BofA banking and I have just left those funds in TOIXX for quite a while now. I have been using TTTXX (Blackrock Treasury Trust) for over 2 years and can confirm there are no trading-related fees including short-term trading. It isn’t unusual for brokerage firms to earn in excess of 1% annually on their customers’ cash in bank sweeps, while passing along a fraction of that to their customers.Merrill’s brokers will still be able to place their customers’ cash in higher-yielding money-market funds, but only by purchasing them manually.Bank sweep accounts at brokerage firms tend to pay about 0.25% on average, according to Crane. ![]() The yield on 100 large money-market mutual funds averages 1.77%, according to Crane Data of Westboro, Mass., which tracks returns on cash investments.In communications distributed to its staff on Monday, the brokerage said money-market funds “will no longer be available as a sweep choice for most new accounts.” Instead, clients’ uninvested cash will be automatically routed to bank deposits.4, Bank of America Corp.’s Merrill Lynch brokerage unit will no longer sweep its customers’ cash into money-market mutual funds, moving it instead into deposits at affiliated banks. WSJ: Merrill Lynch Joins Brigade Downplaying Money-Market Mutual FundsĬlients’ uninvested cash now will be automatically routed to bank deposits Vanguard and Fidelity both have superior cash management but I'm using my ME account for the BofA Preferred Rewards program to get improved CC rewards and this seems like the best way to hold cash if you can meet the minimum for a short period of time. It looks like this fund is subject to state tax. 99% interest and is available for same-day purchases. If you have $5k for the initial purchase it looks like you can purchase BlackRock Liquidity Funds T-Fund Portfolio Cash Management BPTXX which currently pays. It's not a sweep account but looks like the next best thing for my situation at Merrill Edge. As I mentioned before it looks like there is a $100k initial purchase but you can immediately sell and keep what I would assume would be as little as $1 and if you would like to purchase more you have to purchase at least $1k. The 7 day SEC yield is currently 1.48% () and you can sell and purchase stocks with the proceeds on the same day. I don't think I will need to pay state tax on the distributions. I think BlackRock Liquidity Funds Federal Trust Fund Portfolio Institutional - TFFXX is what I'm looking for. The ETFs are interesting but not what I'm looking for. I prefer to use money market funds so I won't have to deal with any accounting issues when it's time to do my taxes.
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