We use transaction-level data from a major Icelandic bank—servicing about one third of the population—to study households’ portfolio allocation within liquid, short-term, safe assets—checking, savings, and brokered liquid funds—that are identical in risk, maturity, and liquidity but offer different yields. These assets are the main source of liquid financial wealth for households and the largest source of funding for banks. Despite instantaneous, costless transfers, most households barely