My wife and I have had our investments at Fidelity for the past three years. Recently we opened a Cash Management Account there to take over as our primary cash (checking and savings) account. I've really liked how easy it is to handle our finances from that account, as opposed to our PNC accounts that were sort of annoying.
The CMA is an ordinary taxable brokerage account with three differences. First, the core position is FDIC insured. It pays a little interest but not much so I haven't kept a balance in the core. Second, you can't enable margin or options. Third, it gives you access to their Cash Manager tool for keeping balances in check and over drafting from another account, etc.
Something occurred to me the other day. What if we just moved all of our taxable investments into the CMA? We don't use the debit cards so I'm not concerned about fraud. We don't plan on using margin or options, and if we want to we could always transfer stuff back into our standard brokerage account.
The primary advantages would be: no need to do transfers between accounts (even though they're instant, it's still annoying to have to do them) and automatic investing would just work, because it would draw from the FDIC core position.
Does anyone else do this? Is it crazy for some reason that I can't think of?
