How do you handle your coupon payments? Not sure what to do with these bits of ca$h that get paid out.
I try to aggregate them into other coupon and maturity payments until I can compound into another bond buy, but I find them sitting in my sweep account in the mean time. I aim for 10K minimum. Assuming a $20 fee, the penalty is 0.2% off the yield. (20/10000).
To buy anything less takes a chunk out of the yield when fees and transaction costs are factored in... No sense in paying $20 to buy $1K T instrument; I'm down 2% out of the gate.
The best I've found are IB and Marcus... rates a/o 2023-05-11 are as follows; These rates change based on market conditions, but I'd imagine the spread will stay proportional:
4.58% - IB sweep account. [1]
4.15% - Marcus savings account. [2]
So I've been keeping them in my sweep account until I can aggregate and lend at a higher rate.
Any suggestions are welcome.
Thanks, Keith
Non-professional - not licensed - opinion only
1. https://www.interactivebrokers.com/en/accounts/fees/pricing-interest-rates.php
2. https://www.marcus.com/us/en/savings/high-yield-savings
I try to aggregate them into other coupon and maturity payments until I can compound into another bond buy, but I find them sitting in my sweep account in the mean time. I aim for 10K minimum. Assuming a $20 fee, the penalty is 0.2% off the yield. (20/10000).
To buy anything less takes a chunk out of the yield when fees and transaction costs are factored in... No sense in paying $20 to buy $1K T instrument; I'm down 2% out of the gate.
The best I've found are IB and Marcus... rates a/o 2023-05-11 are as follows; These rates change based on market conditions, but I'd imagine the spread will stay proportional:
4.58% - IB sweep account. [1]
4.15% - Marcus savings account. [2]
So I've been keeping them in my sweep account until I can aggregate and lend at a higher rate.
Any suggestions are welcome.
Thanks, Keith
Non-professional - not licensed - opinion only
1. https://www.interactivebrokers.com/en/accounts/fees/pricing-interest-rates.php
2. https://www.marcus.com/us/en/savings/high-yield-savings
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