Morningstar writes "The Error-Proof Portfolio: Wring a Little Extra From Your Cash". The article, by Christine Benz, says, "Assuming you don't have an immediate need for the cash in a particular account where you're earning close to nothing, it's well worth centralizing those assets into the highest-yielding investment you can find. By shopping around and consolidating, you may be able to qualify for higher-yielding products that are unavailable to those with smaller sums to invest, such as jumbo certificates of deposit or cheaper share classes of a given money market mutual fund. Now, I don't want to overstate the yield pickup you'll achieve by consolidating into a higher-yielding investment. One-year CD rates at bankrate.com were recently just about 1.3%, and even good, low-cost money market funds have SEC yields that are just barely in positive territory. But 1.3% on a $20,000 investment is $260--better than the 0% you may be earning on some of your cash if you haven't been paying close attention. Brokerage sweep accounts, where your money is often moved if you sell a security and haven't specified a higher-yielding alternative, are notorious for their low yields. Assuming you've decided to consolidate your cash holdings in an effort to pick up a higher yield, here are some key considerations to bear in mind...."
