O.T. I appreciate your post. As I said, fixed income is not at all my area of expertise, so a little schooling is not entirely unwelcome on my end. I should mention that at the time I opened my Citi acct, WaMu (among others) was offering a ridiculous 6%, which I promptly passed on for precisely the reasons you outlined above. Not that at WaMu the funds wouldn't have been FDIC insured, but I had to go with my gut and choose the larger 'name brand', which may or may not prove to have been the best move. Time will tell of course. sprstpd's story is somewhat comforting.
You are right, we don't put our money with IB solely for the interest rate. My only point here was, and maybe it's just me, but it seemed there was a time when IB had rates that compared very favorably to MM's at many of the major banks (at least the ones I usually deal with). It was a nice little bonus to having the IB account, which in my own experience I have found no longer to be the case.
You are right, we don't put our money with IB solely for the interest rate. My only point here was, and maybe it's just me, but it seemed there was a time when IB had rates that compared very favorably to MM's at many of the major banks (at least the ones I usually deal with). It was a nice little bonus to having the IB account, which in my own experience I have found no longer to be the case.