Originally Posted by dgordon
Is this a choice, or will all money left in the checking get 1%
It is an option you can choose to leave your checking account the way you have it now. Not sure why you would as current account pays the following rates:
$0-10K - .88%
$10-25K 1.01%
$25k+ 1.88%
And if you choose for example CitiSM U.S. Treasury Reserves which pays 4.14% and is state income tax exempt while not FDIC insured dont think anyone here can say US T-Bills have any real risk of default either. So assuming you maintain on average $25K the new sweep option pays more than 2X current checking account rate on same balance with little or no risk.
The only catch is balances over $500 are sweept and balance below earns 1%. If you pick one of the tax-free options and you are in one of the higher tax bracket and live in a high tax state like NY, CA or CT where they offer local muni funds your Tax-equivalent yield is over 5% so it even better than manually sweeping your own money into E-savings account which only pays 5%.