Charles Schwab Corp. said Thursday it recorded $53 billion in core net new client assets, the second-highest March result in its history.
The financial services and brokerage firm said deposit flows “have remained fairly consistent” during the recent weeks of jitters in the banking sector.
While money has flowed into higher-interest-paying money market funds, CDs and bonds from relatively lower-return accounts, that trend will start to level off because consumers still want to keep cash in a more “highly liquid” form, Schwab said.
“History suggests the movement of cash into investments such as money markets, bonds and CDs reaches a peak and then returns back towards historical norms,” Schwab said.
At Charles Schwab, so-called transactional cash that customers keep at the ready typically comprises about 5% to 10% of client assets.
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