KFG Clients all received information from TD Ameritrade today announcing that their current money market fund will be discontinued. Now, you will have two choices for your cash account. One is a new money market fund paying 0.05% and insured for up to $1 million. The second is a bank savings account paying from 0.10 to 0.30% and insured by both FDIC and TD Ameritrade for total coverage of $500,000.
We have selected the default to be the second choice, the bank savings account. This is because it pays a wee bit, and we mean a wee bit, more in interest. If you carry cash reserves in excess of $500,000, we recommend you use the new money market fund.
If you have questions, please give us a call or drop us an email.