"High-rate" online savings accounts (FDIC-insured and all) can currently give you between 1.20 and 1.30% APY (ally.com has some, others are offered at Discover for aaii.com members, &c) and may be suitable.No-penalty CDs (where you can cancel w/o penalty at any time, but not as suitable for monthly extraction of small fractions or further deposits in some months) can offer a bit more, maybe 1.40% to 1.50% APY (again check ally.com &c). I think they're probably better used for some portion of your "non-investable emergency reserve cash" (with other portions in longer-term and higher-yielding CDs) rather than for "parking investable cash for a month or so at a time". DO make sure that they're FDIC-insured, that there are no semi-hidden fees, &c.Admittedly the difference between yearly 1.20%, 1.50%, and 0% (what your broker probably pays you for cash just left parked there) ain't much on a one-month basis on reasonably small amounts -- e.g. for (say) $100K, we're talking about $100 vs $125 vs nothing; if (e.g.) wire transfer fees or delays enter the picture, and especially for smaller amounts, it may not be worth the bother.But, all other instruments aren't really cash-equivalent. E.g. LTPZ, a Pimco TIPS index fund, lost 0.68% yesterday, lost 1.5% on Jan 4 (and gained 12% over a year) -- very far from what cash should be doing, in either case. It may or may not be worth a place in your portfolio, depending of course on your approach to diversification, but, don't fool yourself that it's a "cash-equivalent" place to park your dough!-)
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