Fidelity Money Market Funds for everyday expenses

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FabianMontescu
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Fidelity Money Market Funds for everyday expenses

Post by FabianMontescu » Fri Jan 12, 2018 8:45 am

I bank with Fidelity. My short term savings are at Ally and I'm considering a change to Fidelity.

Does anyone here uses Fidelity's money market funds for short-term savings? Is there any of Fidelity's money market funds you'd recommend?

Cash
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Re: Fidelity Money Market Funds for everyday expenses

Post by Cash » Sun Jan 14, 2018 9:44 pm

I also recently consolidated at Fidelity, and I use the Fidelity Municipal Money Market Fund (FTEXX) for my short-term holdings. Current yield is a tax-free (in my state) 1.11%.

quaternion
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Re: Fidelity Money Market Funds for everyday expenses

Post by quaternion » Sun Jan 14, 2018 10:03 pm

SPRXX looks like Fidelity's highest-yield, taxable, retail MM fund. Not quite as good as Vanguard's prime money market, though.

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Rainier
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Re: Fidelity Money Market Funds for everyday expenses

Post by Rainier » Fri Mar 30, 2018 12:12 pm

This is exactly what I want to do, get out of Ally and consolidate more to Fido.

This is for short term savings (vacation in 6 months, escrow for property taxes, etc.)

What are the restrictions for buying and selling these funds? Is there a minimum holding period?

It seems like I can just swap out of my "core" cash option and switch to one of the federal funds. Should I do it this way or should I go and buy one of the listed symbols? I think I'd rather just make one of the two choices my core so my brokerage check writing doesn't need to change.

Looks like Vanguard is clearly beating Fido here, but its mostly on the expense side and much fewer restrictions at Fidelity for buying/selling since the core cash positions acts just like that. Not FDIC but a clear winner over Ally and it would be state tax free.

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Kevin M
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Re: Fidelity Money Market Funds for everyday expenses

Post by Kevin M » Fri Mar 30, 2018 8:11 pm

I use SPRXX in a Fidelity IRA. SEC yield is 1.53%, and minimum initial investment is $2,500. This is a bit higher than Ally savings at 1.45%, but of course not FDIC insured, and the Ally rate might increase soon.

Vanguard MM funds have higher yields in general, so in a taxable account I would prefer VG Prime MM at 1.68%. But if you want to consolidate at Fidelity this is not an option.

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Artsdoctor
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Re: Fidelity Money Market Funds for everyday expenses

Post by Artsdoctor » Fri Mar 30, 2018 8:29 pm

If you can, the Fidelity Money Market Fund [Premium Class] has a current yield of 1.66%. It'll cost you to get in and there is a minimum balance, but you can easily spend down quickly after you open it, so you don't have to tie up large sums. In reality, unless you're talking about huge sums of money, there's not a lot of difference between funds and you're dancing on the head of a pin.

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whodidntante
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Re: Fidelity Money Market Funds for everyday expenses

Post by whodidntante » Sat Mar 31, 2018 1:21 am

I also bank at a Fidelity with a CMA account. I like that account. I pay my bills from cash flow and run a really thin cash balance in relation to my expenses. My meager amount of cash sits in SPRXX.

You can get slightly higher yield from Treasury bills, with no state income tax due. That's what I would do if I wanted a bit more yield. You can sell them early if you need money. And holding T-bills will increase your cash available for withdrawal with margin, which will cover you in the event of overdraft if you set that feature up. Buy one T-bill and see how it works for you.

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Rainier
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Re: Fidelity Money Market Funds for everyday expenses

Post by Rainier » Sat Mar 31, 2018 5:38 am

whodidntante wrote:
Sat Mar 31, 2018 1:21 am
I also bank at a Fidelity with a CMA account. I like that account. I pay my bills from cash flow and run a really thin cash balance in relation to my expenses. My meager amount of cash sits in SPRXX.

You can get slightly higher yield from Treasury bills, with no state income tax due. That's what I would do if I wanted a bit more yield. You can sell them early if you need money. And holding T-bills will increase your cash available for withdrawal with margin, which will cover you in the event of overdraft if you set that feature up. Buy one T-bill and see how it works for you.
I have a checking account (and the checks say CMA) but my only option for a core position is their FDIC/cash position earning 9bps. Are you doing all your banking from the brokerage/CMA account? Not sure I'm ready to combine the two since my brokerage has securities and now my short term savings.

Trying to think of the best way to run the working capital I generate each month....income now, credit cards due in 30-60 days.

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whodidntante
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Re: Fidelity Money Market Funds for everyday expenses

Post by whodidntante » Sat Mar 31, 2018 11:18 am

Rainier wrote:
Sat Mar 31, 2018 5:38 am
whodidntante wrote:
Sat Mar 31, 2018 1:21 am
I also bank at a Fidelity with a CMA account. I like that account. I pay my bills from cash flow and run a really thin cash balance in relation to my expenses. My meager amount of cash sits in SPRXX.

You can get slightly higher yield from Treasury bills, with no state income tax due. That's what I would do if I wanted a bit more yield. You can sell them early if you need money. And holding T-bills will increase your cash available for withdrawal with margin, which will cover you in the event of overdraft if you set that feature up. Buy one T-bill and see how it works for you.
I have a checking account (and the checks say CMA) but my only option for a core position is their FDIC/cash position earning 9bps. Are you doing all your banking from the brokerage/CMA account? Not sure I'm ready to combine the two since my brokerage has securities and now my short term savings.

Trying to think of the best way to run the working capital I generate each month....income now, credit cards due in 30-60 days.
Yes, that's the only option for a core account. But Fidelity will automatically liquidate SPRXX to meet debits on your CMA account, and it counts as "cash available to withdraw." That is a great feature. One minor annoyance is you have to buy SPRXX when you deposit money into the account every two weeks or whatever. But it's a few mouse clicks and worth it. I usually have $0 in the core account.

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