[ghaff]

I assume all of those are money market accounts like a brokerage sweep account as opposed to a regular bank savings account which, at my bank at least, are still paying 0.01%. Which may be a reasonable risk/reward tradeoff as 4% on, say, $100K isn't nothing.

[nine_zeros]

Those are really savings accounts. I myself created accounts in them to take the benefit.

[ghaff]

Interesting. Marcus for example is explicitly covered by FDIC.

I guess a lot of regular banks have decided that they'll just continue to pay the "dumb money" basically nothing rather than trying to compete with the banks and brokerages paying reasonable interest rates.

[nine_zeros]

There is a market for it. Not every human sits everyday watching interest rates, stock prices or other financial signals. I, for one, am glad that banks are competing for money with any interest rate.

[ghaff]

Definitely. For so long, $100K or whatever sitting as a cash or near-cash reserve, it really didn't matter much whether that was in a checking account, a savings account, or a brokerage sweep account. But getting 4-5% on that kind of money at very low risk is getting to be real money at current interest rates and it's worth actively managing how much you have in a checking account.