Fidelity Cash Management

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LivinGood
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Joined: Thu Jan 24, 2019 4:14 pm
Location: NW, CO

Fidelity Cash Management

Post by LivinGood »

I was just checking out Fidelity's cash management on their website. Is this truly a way to keep everything in one place? Any chance Vanguard would ever develop this option? I love the idea, but not sure if it's worth moving my ROTH to Fidelity. Also like the 2% back Visa they're holding. Any thoughts?
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corn18
Posts: 1775
Joined: Fri May 22, 2015 6:24 am

Re: Fidelity Cash Management

Post by corn18 »

This thread walks through all of the CMA options in great detail. I just moved everything to FIDO. Love earning 2.37% on my checking account.

viewtopic.php?f=2&t=266538
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betablocker
Posts: 505
Joined: Mon Jan 11, 2016 1:26 pm

Re: Fidelity Cash Management

Post by betablocker »

I use Fidelity as a one stop shop as do many others. Vanguard had an account like that but are discontinuing it according to threads I’ve read here. They were a disaster for me anyway. They run great funds but I don’t like them as a brokerage, bank, etc. Fidelity allows you to keep cash in money markets that auto liquidate when you write checks or do atm withdrawals. Schwab is another option but they don’t do the auto liquidations so you have to sell money markets on your own leaving more money is low return accounts.
MotoTrojan
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Joined: Wed Feb 01, 2017 8:39 pm

Re: Fidelity Cash Management

Post by MotoTrojan »

I’m now using a brokerage tied to CMA (allows direct deposits to get a proper MM interest rate) but still leaving my investments at VG. I will be using Fidelity’s t-bill auto-roll for cash savings though. I also still have my Wells Fargo account just in case.
Vanguard Fan 1367
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Re: Fidelity Cash Management

Post by Vanguard Fan 1367 »

If you wanted to keep everything in one place Fidelity is happy to accommodate you. I appreciate Vanguard and their index pioneering. I have accounts at both Fidelity and Vanguard and have more at Fidelity now that they are closing my Vanguard Bill Pay and Checkwriting options.
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Ferdinand2014
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Re: Fidelity Cash Management

Post by Ferdinand2014 »

True. Don’t know. I have had Fido since 2000
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Socal77
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Joined: Thu Oct 19, 2017 1:14 pm

Re: Fidelity Cash Management

Post by Socal77 »

Was just re-visiting moving my money to Fidelity CMA. Seems the incentive is pretty tiny now. Using any ATM with re-reimbursed fees seems the best reason at the moment. Due to low MM rates seems I'll postpone it again, or just not do it because it seems high yield savings will consistently stay ahead of Fidelity MM options. Cap 360 currently at 1.3%. So keeping my current setup

1) Fidelity 401K, Roth, Taxable account, CMA open but not in use.
2) Cap 360 emergency fund/excess savings @ 1.3%.
3) US Bank for paying bills and managing cash deposits and withdrawals and paying bills.
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Ged
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Re: Fidelity Cash Management

Post by Ged »

LivinGood wrote: Fri Apr 26, 2019 10:29 am I was just checking out Fidelity's cash management on their website. Is this truly a way to keep everything in one place? Any chance Vanguard would ever develop this option? I love the idea, but not sure if it's worth moving my ROTH to Fidelity. Also like the 2% back Visa they're holding. Any thoughts?
My first employer used Fidelity for its retirement funds; this was before the current IRA law was passed (1980?). Since then I've rolled over employer IRAs into Fidelity after changing jobs as Fidelity has always had better fund choices, including Vanguard offerings. I rarely trade, just occasionally yearly or less rebalancing so the fees to trade are insignificant.

I use Fidelity's cash management as the hub of my finances. Over time I've moved all of my and my wife's retirement accounts to Fidelity. Some of which are Vanguard funds. I pay all of my bills from either the Cash Management feature or via the Fidelity Visa. That includes non-Fidelity credit cards like Costco and Amazon Visa. When I do things like RMDs the funds drop into the Fidelity CM account. My Soc Security goes there as well.

I do maintain a local bank account to manage cash and for a safe deposit box. It's funded by auto deposit of a small pension from one of my former jobs.

It works very well for us. I think the security is better than most sites as well. It is joint with my wife as well so she can access the funds for her needs and she manages the household stuff like property taxes, utilities etc.

The final thing that made it very unlikely that I would ever change is what happened when my father passed. I was his executor. He had his finances at Fidelity. When I called Fidelity about this matter they assigned a specialist to me who extremely sensitive and helpful. That earned Fidelity a lot of good will on my part. When it comes time for my children to go through this I want them to have the same experience as well.

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Theratking
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Joined: Thu Feb 14, 2019 3:41 pm

Re: Fidelity Cash Management

Post by Theratking »

:?: How do you get 2.37% on their checking account?
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bostondan
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Location: Boston, MA

Re: Fidelity Cash Management

Post by bostondan »

Socal77 wrote: Tue Jun 02, 2020 11:24 am Was just re-visiting moving my money to Fidelity CMA. Seems the incentive is pretty tiny now. Using any ATM with re-reimbursed fees seems the best reason at the moment. Due to low MM rates seems I'll postpone it again, or just not do it because it seems high yield savings will consistently stay ahead of Fidelity MM options. Cap 360 currently at 1.3%. So keeping my current setup
I switched to Fidelity for everything, including checking account, about 1 year ago. I'm extremely glad that I did. It has made my life a lot simpler and has worked very well. I use a brokerage account, not a CMA, because we have sufficient funds with Fidelity to give us unlimited ATM withdrawals when using a brokerage account.

When the MM rates dropped recently, I invested most of my cash in FNSOX (Fidelity Short-Term Bond Index Fund) within my brokerage account that I use as a checking account. The most recent yield was 1.6%, though I think the 30-day yield is listed as lower. Regardless, calculating the yield myself does place it around 1.6% so far. The fund seems to be pretty low risk, as it invests mostly in government bonds and some low-risk corporate bonds.

It may be possible to do a little better than FNSOX, but it's easier for me to just have all my accounts at one place. If I need a little more spendable cash in the "checking" (brokerage) account, then I'll just sell some FNSOX. If I have excess cash, I'll just buy more FNSOX. Unfortunately Fidelity will only automatically sell MM funds to cover withdrawals, not mutual funds.
“There may be times when we are powerless to prevent injustice, but there must never be a time when we fail to protest.” - Elie Wiesel
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bostondan
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Re: Fidelity Cash Management

Post by bostondan »

Theratking wrote: Tue Jun 02, 2020 12:32 pm :?: How do you get 2.37% on their checking account?
That post is from 2019. The rates were high until the recent market turmoil and reduction in interest rates.
“There may be times when we are powerless to prevent injustice, but there must never be a time when we fail to protest.” - Elie Wiesel
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