Is anybody using a Fidelity Investments' Cash Management Account along with a brokerage account to replace their checking account?
--> The CMA behaves like a bank checking account (ATM access, no fees, checks, online bill pay, remote check deposits, FDIC insurance, modest interest rate ~0.37%)
--> If I use Cash Manager, it looks like I can link it to a brokerage account where I can use cash to buy a money market fund (yielding ~2%)... and then Cash Manager will take care of selling the money market to take care of cash needs (like overdraft) ... and I'd then leave the majority of the "checking" funds in the money market in the brokerage account
I currently use Ally checking, but this seems like a way to get better returns on my checking account balances without having to jump through hoops for a reward checking account.
* does this seem reasonable (anybody else doing this)?
* am I missing any down-side other than SIPC insurance rather than FDIC insurance?
* it doesn't seem like I'd be hit with any fees with this scheme
* and experience with Fidelity's bill pay system?