The meta-lesson here is that for like the 10,000th time in a row Nisiprius was right. He said repeatedly, “fintechs aren’t banks.”
Well…he was right
I find it puzzling why it's necessary to repeat, over and over, basic facts like "fintechs aren’t banks," "Fidelity is not a bank," or "CMAs aren't checking accounts."
Merrill Lynch introduced the Cash Management Account (CMA) back in 1977, combining brokerage and banking-like services. After 47 years, it's well understood that these accounts differ from traditional bank deposit accounts.
Most brokerage firms now offer banking features such as ACH transfers, wire transfers, check writing, debit cards, BillPay, and FDIC sweep accounts. By this logic, one could even argue that all brokerage accounts qualify as fintech products.
Given that Bogleheads is a financially literate community, I think we can confidently distinguish between brokerage accounts and bank accounts and make choices on our own.
Statistics: Posted by VictorStarr — Wed Oct 09, 2024 10:49 pm — Replies 649 — Views 37498