We will be changing the money market fund used in client accounts to a new tiered-rate structure fund, based on the brokerage account value–not just the money fund value. The larger your account, the larger the credited yield. For example, the current rate on new fund ranges from .05% to .10%, compared to a flat .01% on the current fund. While not much today, the new fund should add value as interest rates and yields rise.
There are no transaction charges to make this change and clients will be mailed a prospectus for the new fund. The FDIC insurance on the fund provides up to $2.5 million in coverage.