Just received a letter from my brokerage firm (Oppenheimer). Our
account cash balances will now sweep into this Advantage Bank Deposit
Program, rather than the money market they've been swept into. Big
difference is that we will now be paid under 1% interest (unless you
have over a million bucks, where you're earn 2.78%), whereas the
previous cash balances earned much more in money market (3.67% on last
statement). When I called, I talked to some aid who tried to tell me
that this was SOOO much better for the clients in that the Advantage
program was FDIC insured, blah, blah. To me, it seems like a way for
Oppenheimer to invest our cash balances and earn money off them, while
giving us peanuts. Maybe I'm just misinterpreting things, but I'm
going to try to talk to our actual broker today, not an assistant. In
any case, we don't have a choice of this sweep.
Any comments or similar situations out there? Am I missing something?
SandyBeth
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