Schwab sent out an email a few months ago that they were transitioning the SWGXX sweep to Schwab One Interest but with an Enhanced Rate that will stay comparable to what SWGXX is yielding. You can’t see this rate in your account, but if you call Schwab, they should be able to confirm the higher rate that you are earning.I have recently experienced an unusual event at Schwab where I have maintained investment accounts for a very long time.
Among the accounts is one which is primarily used for emergency cash reserves and a home for other cash that can be readily redeployed into various investment accounts.
The cash in this account had been kept in SWGXX, a short term money market invested in short term government securities. In mid December, our holdings in this account were "sold" and have remained in "cash" ever since. The $$ amount is significant. I did not initiate the "sale" nor did I receive any communication from Schwab beforehand about changing this investment. The fund continues to exist in other Schwab accounts that I have.
I have yet to get from Schwab information on why this trade was made. I have yet to get any definitive information as to what the cash in this account is now invested in.
Has anyone else experienced unusual issues with their holdings in SWGXX or other cash sweep issues at Schwab?
At least for me, this change only applied to my self-directed taxable accounts so far… my IRA accounts and my Advisor accounts still seem to have the SWGXX sweep.
Statistics: Posted by plmd — Thu Jan 30, 2025 7:23 pm — Replies 3 — Views 186