Fidelity as a one stop shop

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frugaltigris
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Re: Fidelity as a one stop shop

Post by frugaltigris » Tue Aug 20, 2019 8:30 am

HI All,

I think Fidelity as one stop shop is a great idea. I have CMA, brokerage, HSA, 403(b) accounts for me and DW there. I have used Fidelity debit card internationally and it has given my excellent exchange rate and reimbursed foreign ATM fee. I usually maintain only a couple of thousand in my CMA so no minimum requirements. But I am not happy with somethings.

1. International wire transfer in to CMA is a pain. Their form is more complex and on two occasions external parties made mistake. But Fidelity went extra mile in both situations to resolve the issue to my happiness. This is the only "bank account" I know which allows free incoming international wire transfer.

2. Fidelity makes trading super-easy which is sometimes not good. Is there a way in Fidelity account settings to just see balance of my CMA but not brokerage account? If I hide balances, everything is hidden. I don;t want to see balance in my brokerage account but only CMA.

3. Their index funds seem not so tax efficient.

To colleagues who use this as taxable account, do you just invest in ETFs or buy Fidelity index funds too? On practical purposes, what is the tax lag in basis points if I am in 22% bracket with 6% state tax. Thanks for answers.
Last edited by frugaltigris on Tue Aug 20, 2019 8:46 am, edited 1 time in total.

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Artsdoctor
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Re: Fidelity as a one stop shop

Post by Artsdoctor » Tue Aug 20, 2019 8:43 am

HomeStretch wrote:
Sun Aug 18, 2019 10:22 pm
ARoseByAnyOtherName wrote:
Sun Aug 18, 2019 10:07 pm

Are there any B&M banking needs that you can take care of at BoA, but can’t by walking into a Fidelity?

I use both BoA (checking only, not even savings) and Fidelity for everything else. It sure would be nice to simplify down to using Fidelity for everything. I’m not quite ready to do that....
I am keeping my B&M bank (for now)?as it has some things that Fidelity doesn’t, such as :
- safe deposit box
- cashier’s check
- foreign currency
- ATM / cash deposits / coin machine
- Medallion guarantee
There are definitely reasons to keep an account at a local bank and you've listed a couple. For most people, they will pay for the privilege of banking locally but it may easily be worth it. There are a few small, local banks which may even offer services for free, if you're lucky enough to have them nearby.

If you really need a safe deposit box, Fidelity will not help you out there.

Fidelity will cut a cashier's check and you can easily be reimbursed for withdrawing cash from any ATM.

A local bank will almost always charge you relatively high fees when dealing with foreign currency and may offer medallion signature guarantees (but will be MIA when you actually need to schedule an appointment).

If you're going to be dealing with a lot of cash transactions then a local bank will be essential.

MikeG62
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Re: Fidelity as a one stop shop

Post by MikeG62 » Tue Aug 20, 2019 8:53 am

obafgkm wrote:
Tue Aug 20, 2019 8:10 am
MikeG62 wrote:
Tue Aug 20, 2019 7:45 am
While I don't use Fidelity as a one-stop-shop (so not entirely on topic), I would add here that I recently discovered if I initiate an ACH transfer at Fidelity early in the morning the funds arrive at my B&M bank later that same day.
Generally, is that a function solely of Fidelity, or does it also depend on the receiving brick & mortar (B&M) financial institution, too? (In other words, is MikeG62's experience universal, for sufficiently "early in the morning"?)
Can’t say. See Indexfundfan’s comment above. He says the cutoff is 8am. My external B&M bank is BofA by the way.

It’s a great feature no doubt.
Real Knowledge Comes Only From Experience

arf30
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Re: Fidelity as a one stop shop

Post by arf30 » Tue Aug 20, 2019 8:59 am

obafgkm wrote:
Tue Aug 20, 2019 8:10 am
MikeG62 wrote:
Tue Aug 20, 2019 7:45 am
While I don't use Fidelity as a one-stop-shop (so not entirely on topic), I would add here that I recently discovered if I initiate an ACH transfer at Fidelity early in the morning the funds arrive at my B&M bank later that same day.
Generally, is that a function solely of Fidelity, or does it also depend on the receiving brick & mortar (B&M) financial institution, too? (In other words, is MikeG62's experience universal, for sufficiently "early in the morning"?)
Sounds like same day ACH, which both institutions must support: https://www.nacha.org/rules/same-day-ac ... er-phase-3

arf30
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Re: Fidelity as a one stop shop

Post by arf30 » Tue Aug 20, 2019 10:32 am

I've used cashier's checks for a condo downpayment and for buying cars, but they're both infrequent - maybe two per decade on average.

For foreign currency I just hit up an ATM when I land or exchange at the airport, depending on how modern the destination is.

ndpage
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Re: Fidelity as a one stop shop

Post by ndpage » Tue Aug 20, 2019 12:38 pm

Question 1: How do those of you who use YNAB link/sync CMA/MMF accounts with Fidelity? Does the MMF balance get linked? If not, do you just process the inflows as going to an Emergency Fund category and then label with the sales as reducing that category? Or do you do something else?

Question 2 (I think I didn't understand this one): For those of you with direct deposit, are you able to set it up to automatically buy MMF from the CMA when the deposit hits, or do you have to go in that night and do it manually?

mervinj7
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Re: Fidelity as a one stop shop

Post by mervinj7 » Tue Aug 20, 2019 12:45 pm

ndpage wrote:
Tue Aug 20, 2019 12:38 pm
Question 1: How do those of you who use YNAB link/sync CMA/MMF accounts with Fidelity? Does the MMF balance get linked? If not, do you just process the inflows as going to an Emergency Fund category and then label with the sales as reducing that category? Or do you do something else?

Question 2 (I think I didn't understand this one): For those of you with direct deposit, are you able to set it up to automatically buy MMF from the CMA when the deposit hits, or do you have to go in that night and do it manually?
This doesn't directly answer your question but I opened a second brokerage account. The sole purpose of this account is to receive direct deposits from trusted sources (e.g. employer). The core fund is setup to be SPAXX. You can setup up an automatic monthly purchase of FDLXX or our preferred MMF in automatic investments. All withdrawals (e.g. bills, mortgage, CC), however, come out of the CMA. That way, my primary "checking" account is not exposed.

MikeG62
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Location: New Jersey

Re: Fidelity as a one stop shop

Post by MikeG62 » Tue Aug 20, 2019 5:11 pm

arf30 wrote:
Tue Aug 20, 2019 8:59 am
obafgkm wrote:
Tue Aug 20, 2019 8:10 am
MikeG62 wrote:
Tue Aug 20, 2019 7:45 am
While I don't use Fidelity as a one-stop-shop (so not entirely on topic), I would add here that I recently discovered if I initiate an ACH transfer at Fidelity early in the morning the funds arrive at my B&M bank later that same day.
Generally, is that a function solely of Fidelity, or does it also depend on the receiving brick & mortar (B&M) financial institution, too? (In other words, is MikeG62's experience universal, for sufficiently "early in the morning"?)
Sounds like same day ACH, which both institutions must support: https://www.nacha.org/rules/same-day-ac ... er-phase-3
Yup and the transfer dollar amount apparently needs to be for no more than $25,000.
Real Knowledge Comes Only From Experience

boston10
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Re: Fidelity as a one stop shop

Post by boston10 » Tue Aug 20, 2019 8:00 pm

So everyone else who sees this thread can benefit from what I've researched on the after-tax yields of SPRXX and SPAXX, I'm going to post what I've found here.

SPAXX is a Government Money Market fund and SPRXX is a Prime Money Market fund. The reason SPRXX is higher-yielding than SPAXX (currently 1.92% vs 1.81%) is because government debt is considered lower-risk, but also because government debt is tax exempt in many states.

So there's a pre-tax difference in yield of 11 basis points. But many states, including Massachusetts (see G.L. c. 62, § 2(a)(1)(A)), allow for an exemption from income tax for dividend income attributable to interest on federal debt.

SPRXX has very little government debt, while SPAXX is mostly government debt (56% vs 2.5%)

So 53.5% more of SPAXX's dividends are state tax deductible than SPRXX's. Based on the current yield, that's 0.968% more of SPAXX that's exempt.

You can run these numbers for your state, but as applied to MA with our current flat 5.05% state income tax rate, the state essentially claws back 4.9 of the 11 basis points you get from SPRXX in taxes. If you live in a state with high marginal brackets and you're paying 10%, they would be clawing back 9.7 of the 11 basis point difference.

The upshot? I'll buy SPRXX sometimes, but I'm going to be a lot less worried about leaving my money in SPAXX going forward, and if you live in a high tax state, you should too.

mervinj7
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Re: Fidelity as a one stop shop

Post by mervinj7 » Tue Aug 20, 2019 9:01 pm

boston10 wrote:
Tue Aug 20, 2019 8:00 pm
You can run these numbers for your state, but as applied to MA with our current flat 5.05% state income tax rate, the state essentially claws back 4.9 of the 11 basis points you get from SPRXX in taxes. If you live in a state with high marginal brackets and you're paying 10%, they would be clawing back 9.7 of the 11 basis point difference.

The upshot? I'll buy SPRXX sometimes, but I'm going to be a lot less worried about leaving my money in SPAXX going forward, and if you live in a high tax state, you should too.
Another option for high tax states is FDLXX. That's 100% state tax free.

boston10
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Re: Fidelity as a one stop shop

Post by boston10 » Wed Aug 21, 2019 5:12 am

mervinj7 wrote:
Tue Aug 20, 2019 9:01 pm
boston10 wrote:
Tue Aug 20, 2019 8:00 pm
You can run these numbers for your state, but as applied to MA with our current flat 5.05% state income tax rate, the state essentially claws back 4.9 of the 11 basis points you get from SPRXX in taxes. If you live in a state with high marginal brackets and you're paying 10%, they would be clawing back 9.7 of the 11 basis point difference.

The upshot? I'll buy SPRXX sometimes, but I'm going to be a lot less worried about leaving my money in SPAXX going forward, and if you live in a high tax state, you should too.
Another option for high tax states is FDLXX. That's 100% state tax free.
Very good point. Current yield on FDLXX is 1.76%, so its after-tax yield in a state with a ~5% income tax is roughly equivalent to SPAXX.

mervinj7
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Re: Fidelity as a one stop shop

Post by mervinj7 » Wed Aug 21, 2019 11:30 am

boston10 wrote:
Wed Aug 21, 2019 5:12 am
mervinj7 wrote:
Tue Aug 20, 2019 9:01 pm
Another option for high tax states is FDLXX. That's 100% state tax free.
Very good point. Current yield on FDLXX is 1.76%, so its after-tax yield in a state with a ~5% income tax is roughly equivalent to SPAXX.
You can go one step further and directly buy 1-3 month Treasury bills and save on the ER. I do it quite often if I know I will have a known large upcoming expense (e.g. car purchase, property tax bill, home improvement). For example, I have upcoming ~$10k electrical panel work with the funds set aside in a 1 month bill earning 2.06% (TEY=2.34%). Once a contract is signed and I have a due date for payment, I will stop rolling that particular bill into new bills. That way, at any given point only a small portion of my "cash" is sitting in FDLXX.

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sarabayo
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Re: Fidelity as a one stop shop

Post by sarabayo » Thu Aug 22, 2019 1:22 pm

boston10 wrote:
Tue Aug 20, 2019 8:00 pm
So everyone else who sees this thread can benefit from what I've researched on the after-tax yields of SPRXX and SPAXX, I'm going to post what I've found here.

SPAXX is a Government Money Market fund and SPRXX is a Prime Money Market fund. The reason SPRXX is higher-yielding than SPAXX (currently 1.92% vs 1.81%) is because government debt is considered lower-risk, but also because government debt is tax exempt in many states.

So there's a pre-tax difference in yield of 11 basis points. But many states, including Massachusetts (see G.L. c. 62, § 2(a)(1)(A)), allow for an exemption from income tax for dividend income attributable to interest on federal debt.

SPRXX has very little government debt, while SPAXX is mostly government debt (56% vs 2.5%)

So 53.5% more of SPAXX's dividends are state tax deductible than SPRXX's. Based on the current yield, that's 0.968% more of SPAXX that's exempt.

You can run these numbers for your state, but as applied to MA with our current flat 5.05% state income tax rate, the state essentially claws back 4.9 of the 11 basis points you get from SPRXX in taxes. If you live in a state with high marginal brackets and you're paying 10%, they would be clawing back 9.7 of the 11 basis point difference.

The upshot? I'll buy SPRXX sometimes, but I'm going to be a lot less worried about leaving my money in SPAXX going forward, and if you live in a high tax state, you should too.
I've run the numbers on all of Fidelity's money market funds that are reasonable for an individual to purchase (i.e. excluding ones with large minimum investments), and I have a spreadsheet that computes their after tax yield based on my federal and California marginal tax rates:

Image

The dates run from the beginning of 2018 through last Friday. FDLXX and FDRXX are neck and neck with respect to my tax brackets. I'm currently in FDRXX, but FDLXX just pulled back into the lead by a tiny bit last week so I might switch to FDLXX if that continues :)

Though honestly they're so close that it hardly matters, especially since I only have about $5k in cash at Fidelity! I guess it's just fun to look at the graphs...

djheini
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Re: Fidelity as a one stop shop

Post by djheini » Thu Aug 22, 2019 1:35 pm

ndpage wrote:
Tue Aug 20, 2019 12:38 pm
Question 1: How do those of you who use YNAB link/sync CMA/MMF accounts with Fidelity? Does the MMF balance get linked? If not, do you just process the inflows as going to an Emergency Fund category and then label with the sales as reducing that category? Or do you do something else?

Question 2 (I think I didn't understand this one): For those of you with direct deposit, are you able to set it up to automatically buy MMF from the CMA when the deposit hits, or do you have to go in that night and do it manually?
Answer 1: I have my CMA linked to a YNAB checking account. When it imports transactions, any time you buy MMF shares it gets imported as an outflow transaction, and anytime it redeems them it gets imported as an inflow transaction. I just reject/delete these, and reconcile the YNAB balance against the total account value from fidelity's site (I only hold the FDIC sweep + MMF in my CMA).

Answer 2: You have to go in and do it manually (unless you have a separate brokerage account that you deposit into and change the default fund option, but I don't do that)

bck63
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Re: Fidelity as a one stop shop

Post by bck63 » Thu Aug 22, 2019 5:36 pm

ARoseByAnyOtherName wrote:
Mon Aug 19, 2019 9:43 pm
MisterBill wrote:
Sun Aug 18, 2019 11:43 pm
ARoseByAnyOtherName wrote:
Sun Aug 18, 2019 10:07 pm
Are there any B&M banking needs that you can take care of at BoA, but can’t by walking into a Fidelity?

I use both BoA (checking only, not even savings) and Fidelity for everything else. It sure would be nice to simplify down to using Fidelity for everything. I’m not quite ready to do that....
Fidelity doesn't accept cash deposits at the branch. They don't even have an ATM that would take them. And this is at a newly constructed branch.
That’s a significant limitation. I don’t need to deposit cash often, but I do sometimes. What do they recommend you do in this situation? Deposit it at another bank and transfer?
That's what I do -- deposit cash at my B&M bank and transfer into my cash management account.

boston10
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Re: Fidelity as a one stop shop

Post by boston10 » Thu Aug 22, 2019 5:51 pm

sarabayo wrote:
Thu Aug 22, 2019 1:22 pm
boston10 wrote:
Tue Aug 20, 2019 8:00 pm
So everyone else who sees this thread can benefit from what I've researched on the after-tax yields of SPRXX and SPAXX, I'm going to post what I've found here.

SPAXX is a Government Money Market fund and SPRXX is a Prime Money Market fund. The reason SPRXX is higher-yielding than SPAXX (currently 1.92% vs 1.81%) is because government debt is considered lower-risk, but also because government debt is tax exempt in many states.

So there's a pre-tax difference in yield of 11 basis points. But many states, including Massachusetts (see G.L. c. 62, § 2(a)(1)(A)), allow for an exemption from income tax for dividend income attributable to interest on federal debt.

SPRXX has very little government debt, while SPAXX is mostly government debt (56% vs 2.5%)

So 53.5% more of SPAXX's dividends are state tax deductible than SPRXX's. Based on the current yield, that's 0.968% more of SPAXX that's exempt.

You can run these numbers for your state, but as applied to MA with our current flat 5.05% state income tax rate, the state essentially claws back 4.9 of the 11 basis points you get from SPRXX in taxes. If you live in a state with high marginal brackets and you're paying 10%, they would be clawing back 9.7 of the 11 basis point difference.

The upshot? I'll buy SPRXX sometimes, but I'm going to be a lot less worried about leaving my money in SPAXX going forward, and if you live in a high tax state, you should too.
I've run the numbers on all of Fidelity's money market funds that are reasonable for an individual to purchase (i.e. excluding ones with large minimum investments), and I have a spreadsheet that computes their after tax yield based on my federal and California marginal tax rates:

Image

The dates run from the beginning of 2018 through last Friday. FDLXX and FDRXX are neck and neck with respect to my tax brackets. I'm currently in FDRXX, but FDLXX just pulled back into the lead by a tiny bit last week so I might switch to FDLXX if that continues :)

Though honestly they're so close that it hardly matters, especially since I only have about $5k in cash at Fidelity! I guess it's just fun to look at the graphs...
I really like this. But then I look at the overall yields, and it occurs to me that if I have any sizable amount of cash at Fido, it makes more sense to just buy Treasury bills directly as Mervin suggests...

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sarabayo
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Re: Fidelity as a one stop shop

Post by sarabayo » Thu Aug 22, 2019 7:08 pm

boston10 wrote:
Thu Aug 22, 2019 5:51 pm
I really like this. But then I look at the overall yields, and it occurs to me that if I have any sizable amount of cash at Fido, it makes more sense to just buy Treasury bills directly as Mervin suggests...
Yeah. I only keep "checking account money" at Fidelity, i.e. enough money to tide me from paycheck . My emergency fund is at Vanguard in VMFXX. It would be nice to consolidate my cash at Fidelity but Vanguard's MM yields are just so much better than Fidelity's, thanks to their low ERs. I'm already holding my VTSAX at Vanguard so it's not too much trouble for me to keep some cash there as well.

boston10
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Re: Fidelity as a one stop shop

Post by boston10 » Fri Aug 23, 2019 5:57 am

I got my first paycheck today since updating my DD - no issues, and it did in fact deposit into my account a day early, which has not been the case with any banks I've used recently (BoA, Wells Fargo, Santander, Citizens).

To provide an updated strategy (new parts bolded, old parts struck through):
  • Brokerage account for direct deposit and bill pay (push only). Account number never given out or exposed anywhere except for DD. Manually purchase SPRXX periodically occassionally, but try to use Treasury bills if feasible for higher TEY.
  • CMA (not linked/no overdraft) for ATM and check use, and for any use case where my account number would be exposed to a third party (for example, bill pay where they are sending a paper check, or "pull" ACH transactions). These transactions are few and far between for me (zero most months) generally predictable and only happen a few times a month, so I set up several automatic monthly transfers from my brokerage to my CMA to cover them before they're pulled and keep it manually topped off at ~$500 in SPRXX in this account. So everything stays in a MM.
  • Continue to chase higher yields and bonuses across different companies with my excess cash savings.
  • Keep my BoA account for cash deposits and any misc B&M banking needs, with a $250 DD each paycheck to keep the account free, that I immediately and automatically sweep to Fido. Keep only ~$100 in this account.
I have all of my payees set up in Fido at this point, and ebills/reminders/auto-pay set up depending on the payee. Next paycheck I'll steer the bulk of my DD to Fido, and go from there.

spammagnet
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Re: Fidelity as a one stop shop

Post by spammagnet » Sat Aug 24, 2019 10:18 pm

djheini wrote:
Thu Aug 22, 2019 1:35 pm
ndpage wrote:
Tue Aug 20, 2019 12:38 pm
Question 1: How do those of you who use YNAB link/sync CMA/MMF accounts with Fidelity? Does the MMF balance get linked? If not, do you just process the inflows as going to an Emergency Fund category and then label with the sales as reducing that category? Or do you do something else?

Question 2 (I think I didn't understand this one): For those of you with direct deposit, are you able to set it up to automatically buy MMF from the CMA when the deposit hits, or do you have to go in that night and do it manually?
Answer 1: I have my CMA linked to a YNAB checking account. When it imports transactions, any time you buy MMF shares it gets imported as an outflow transaction, and anytime it redeems them it gets imported as an inflow transaction. I just reject/delete these, and reconcile the YNAB balance against the total account value from fidelity's site (I only hold the FDIC sweep + MMF in my CMA).

Answer 2: You have to go in and do it manually (unless you have a separate brokerage account that you deposit into and change the default fund option, but I don't do that)
1. I do the same (delete the MMF buys and sells) and reconcile the YNAB checking account balance against the "Available to Withdraw" amount shown on the Cash Management tab on the Fidelity web site.

2. I have an automated investment set up to buy the MMF. It works even if the cash (sweep) balance is less than the buy amount because Fidelity will sell an MMF to fulfill the auto purchase of the same MMF. It's circular logic, but it works. (I learned that from someone here.) The result is 100% of your cash in the MMF.

Of course, as soon as you have another transaction, it either sells the MMF or puts the excess cash in the sweep, until the next auto-investment.

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indexfundfan
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Re: Fidelity as a one stop shop

Post by indexfundfan » Sun Aug 25, 2019 2:15 pm

spammagnet wrote:
Sat Aug 24, 2019 10:18 pm
2. I have an automated investment set up to buy the MMF. It works even if the cash (sweep) balance is less than the buy amount because Fidelity will sell an MMF to fulfill the auto purchase of the same MMF. It's circular logic, but it works. (I learned that from someone here.) The result is 100% of your cash in the MMF.
Curious to hear how you set this up. Do you set it up for once a month? I guess you can even setup a few so that automatic investments takes place every few days.
My signature has been deleted.

spammagnet
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Re: Fidelity as a one stop shop

Post by spammagnet » Sun Aug 25, 2019 2:28 pm

indexfundfan wrote:
Sun Aug 25, 2019 2:15 pm
Curious to hear how you set this up. Do you set it up for once a month? I guess you can even setup a few so that automatic investments takes place every few days.
I think I set it up for once per week, for the approximate amount of regular new cash inflows (basically, paychecks.)

Someone here compared after-tax yield of the different funds and determined the difference to be insignificant. If you have two commas in cash it might matter, but I certainly don't. If I ever have need to revise the automatic investment, I'll probably just delete it.
Last edited by spammagnet on Sun Aug 25, 2019 10:56 pm, edited 1 time in total.

mhalley
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Re: Fidelity as a one stop shop

Post by mhalley » Sun Aug 25, 2019 8:13 pm

I have the need to give a relative some money on a regular basis. I tried the bluebird card, but there are no atm fee free atms nearby. I was wondering if I could setup another cma account and fund it and give him the atm card. I use my current cma account, but the brokerage account has zero dollars. Would the 2 cma accounts be totally separate, so he could not make charges beyond the amount I put in the second cma?

edge
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Re: Fidelity as a one stop shop

Post by edge » Sun Aug 25, 2019 9:36 pm

Well yes...but his name needs to be on the account.
mhalley wrote:
Sun Aug 25, 2019 8:13 pm
I have the need to give a relative some money on a regular basis. I tried the bluebird card, but there are no atm fee free atms nearby. I was wondering if I could setup another cma account and fund it and give him the atm card. I use my current cma account, but the brokerage account has zero dollars. Would the 2 cma accounts be totally separate, so he could not make charges beyond the amount I put in the second cma?

vtMaps
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Re: Fidelity as a one stop shop

Post by vtMaps » Mon Aug 26, 2019 5:15 am

mhalley wrote:
Sun Aug 25, 2019 8:13 pm
I have the need to give a relative some money on a regular basis.
Why not use the CMA's billpay feature to send him a check? --vtMaps
Historical Fact: Justin Smith Morrill represented Vermont in congress, had a dog named 'Trump', and wrote legislation establishing the Land Grant Colleges.

snowman
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Re: Fidelity as a one stop shop

Post by snowman » Mon Aug 26, 2019 9:16 am

vtMaps wrote:
Mon Aug 26, 2019 5:15 am
mhalley wrote:
Sun Aug 25, 2019 8:13 pm
I have the need to give a relative some money on a regular basis.
Why not use the CMA's billpay feature to send him a check? --vtMaps
Agree, unless said relative wants cash only (for whatever reason).

Another option would be for said relative to open his/her own Fidelity CMA account, give you the account number, and you could call Fidelity (cannot be done online) and ask to transfer money from your account to relative's account. Transfer would be instant.

mervinj7
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Re: Fidelity as a one stop shop

Post by mervinj7 » Mon Aug 26, 2019 11:26 am

mhalley wrote:
Sun Aug 25, 2019 8:13 pm
I have the need to give a relative some money on a regular basis. I tried the bluebird card, but there are no atm fee free atms nearby. I was wondering if I could setup another cma account and fund it and give him the atm card. I use my current cma account, but the brokerage account has zero dollars. Would the 2 cma accounts be totally separate, so he could not make charges beyond the amount I put in the second cma?
For liability reasons, I would say the safest option is for your relative to have their own checking account. You can then send them checks using the BillPay feature. That way, your own account exposure is minimized. Unfortunately (or fortunately), you can't use Zelle with the CMA.

MisterBill
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Re: Fidelity as a one stop shop

Post by MisterBill » Mon Aug 26, 2019 8:59 pm

So I was never that concerned about fraud possibility, but just noticed an unknown charge show up on my Fidelity CMA account today. Fortunately it's only for $22.81 (there was also one for $0.00, presumably authorizing it when added to the account). I just reported it to Fidelity and they have cancelled the card and are sending me a new one. I am not sure where they got the number. I did use it several times in Europe back in June but also use it occasionally at local stores for reasons I won't go into here. Also used it last week at a local ATM.

Update: I contacted Amazon and based on the information in the charge, they were able to find the order. Apparently they had already cancelled the order due to suspected fraudulent activity and will open an investigation and make sure I get the money back. Unlikely they'll catch anyone but at least they won't get the stuff they ordered (which presumably was a prelude to trying a bigger purchase, that's how these folks usually work).

iamblessed
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Re: Fidelity as a one stop shop

Post by iamblessed » Mon Aug 26, 2019 9:25 pm

MisterBill wrote:
Mon Aug 26, 2019 8:59 pm
So I was never that concerned about fraud possibility, but just noticed an unknown charge show up on my Fidelity CMA account today. Fortunately it's only for $22.81 (there was also one for $0.00, presumably authorizing it when added to the account). I just reported it to Fidelity and they have cancelled the card and are sending me a new one. I am not sure where they got the number. I did use it several times in Europe back in June but also use it occasionally at local stores for reasons I won't go into here. Also used it last week at a local ATM.

Update: I contacted Amazon and based on the information in the charge, they were able to find the order. Apparently they had already cancelled the order due to suspected fraudulent activity and will open an investigation and make sure I get the money back. Unlikely they'll catch anyone but at least they won't get the stuff they ordered (which presumably was a prelude to trying a bigger purchase, that's how these folks usually work).
Will you have to do a lot of paperwork for Fidelity?

MisterBill
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Re: Fidelity as a one stop shop

Post by MisterBill » Mon Aug 26, 2019 9:31 pm

iamblessed wrote:
Mon Aug 26, 2019 9:25 pm
Will you have to do a lot of paperwork for Fidelity?
Didn't seem like it, they said they will open an investigation and then send me something to fill out, but if Amazon refunds the money (which they said they would and it might already be in progress if they cancelled the order due to suspected fraud), I probably won't need to fill out anything. The only form would presumably be an affidavit to get the fraudulent charges removed and it won't be necessary.

BTW I asked if they could get me the new card quickly and they said they would send it via Fedex and I should have it Thursday or Friday.

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Leif
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Re: Fidelity as a one stop shop

Post by Leif » Mon Aug 26, 2019 9:42 pm

MisterBill wrote:
Mon Aug 26, 2019 9:31 pm
BTW I asked if they could get me the new card quickly and they said they would send it via Fedex and I should have it Thursday or Friday.
That happened to me once. They sent me a new card via FedEx. I never received the new card. It was picked up off my front porch and fraudulently used. All around Christmas time, so I'm not sure if it was somehow planned or just coincidence. Good thing I was on top of it. I told Fidelity according to FedEx the card was delivered. They said check around the door, maybe the wind blew it somewhere. I checked but nothing. A few days later I see a couple of $400 charges at Walmart. They could have saved themselves some money if they just cancelled that card right away.

How they were able to activate it I'm not sure. Fidelity told me in some cases they pre-activate the card. What a mess. Anyway after that I always tell them to please send the card in standard mail.
Last edited by Leif on Mon Aug 26, 2019 9:56 pm, edited 3 times in total.

iamblessed
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Re: Fidelity as a one stop shop

Post by iamblessed » Mon Aug 26, 2019 9:50 pm

I heard fraud on a debit card can be a nightmare so I am curious how Fidelity handles it?

MisterBill
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Re: Fidelity as a one stop shop

Post by MisterBill » Mon Aug 26, 2019 10:17 pm

iamblessed wrote:
Mon Aug 26, 2019 9:50 pm
I heard fraud on a debit card can be a nightmare so I am curious how Fidelity handles it?
So far, so good. Only complaint is that the automated help on the website said to call one number, but while I was going thru the voice menu it said that 90% of debit card calls needed to be handled by a different number and suggested that I call the number on my card. I did that, and they were able to help me.

The important thing is that I noticed it after a fairly small charge. It would have been much worse had they charged a few thousand.

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Re: Fidelity as a one stop shop

Post by MisterBill » Tue Aug 27, 2019 1:17 am

Leif wrote:
Mon Aug 26, 2019 9:42 pm
That happened to me once. They sent me a new card via FedEx. I never received the new card. It was picked up off my front porch and fraudulently used. All around Christmas time, so I'm not sure if it was somehow planned or just coincidence. Good thing I was on top of it. I told Fidelity according to FedEx the card was delivered. They said check around the door, maybe the wind blew it somewhere. I checked but nothing. A few days later I see a couple of $400 charges at Walmart. They could have saved themselves some money if they just cancelled that card right away.

How they were able to activate it I'm not sure. Fidelity told me in some cases they pre-activate the card. What a mess. Anyway after that I always tell them to please send the card in standard mail.
Hopefully I'll have better luck, although I have noticed that Fedex recently is leaving my packages and envelopes at the front of my porch and not even putting it by the door (nor are they ringing the doorbell). Was not getting texts when my Fedex packages were being delivered but I just discovered that I only had it set to send email, not a text, so hopefully that is resolved.

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Leif
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Re: Fidelity as a one stop shop

Post by Leif » Tue Aug 27, 2019 1:21 pm

MisterBill wrote:
Tue Aug 27, 2019 1:17 am
Hopefully I'll have better luck, although I have noticed that Fedex recently is leaving my packages and envelopes at the front of my porch and not even putting it by the door (nor are they ringing the doorbell). Was not getting texts when my Fedex packages were being delivered but I just discovered that I only had it set to send email, not a text, so hopefully that is resolved.
Good luck. Sometimes I think it is a chess game between us and the bad guys. And we don't even know we are playing!

mervinj7
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Re: Fidelity as a one stop shop

Post by mervinj7 » Tue Aug 27, 2019 1:32 pm

MisterBill wrote:
Tue Aug 27, 2019 1:17 am
Leif wrote:
Mon Aug 26, 2019 9:42 pm
That happened to me once. They sent me a new card via FedEx. I never received the new card. It was picked up off my front porch and fraudulently used. All around Christmas time, so I'm not sure if it was somehow planned or just coincidence. Good thing I was on top of it. I told Fidelity according to FedEx the card was delivered. They said check around the door, maybe the wind blew it somewhere. I checked but nothing. A few days later I see a couple of $400 charges at Walmart. They could have saved themselves some money if they just cancelled that card right away.

How they were able to activate it I'm not sure. Fidelity told me in some cases they pre-activate the card. What a mess. Anyway after that I always tell them to please send the card in standard mail.
Hopefully I'll have better luck, although I have noticed that Fedex recently is leaving my packages and envelopes at the front of my porch and not even putting it by the door (nor are they ringing the doorbell). Was not getting texts when my Fedex packages were being delivered but I just discovered that I only had it set to send email, not a text, so hopefully that is resolved.
Have you considered getting a Ring or Nest Hello doorbell? I had a guy who walked all the way up to the porch, saw the doorbell, and just casually walk away without taking the package. It also captured another guy who jumped the garden fence just to pull out a lavender plant. I still don't understand that one.

MisterBill
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Re: Fidelity as a one stop shop

Post by MisterBill » Tue Aug 27, 2019 2:35 pm

mervinj7 wrote:
Tue Aug 27, 2019 1:32 pm
Have you considered getting a Ring or Nest Hello doorbell? I had a guy who walked all the way up to the porch, saw the doorbell, and just casually walk away without taking the package. It also captured another guy who jumped the garden fence just to pull out a lavender plant. I still don't understand that one.
Haven't really felt the need. We are home most of the time and it's only FedEx that drops it there and I rarely get stuff from them. I realized that I had my delivery alert sent via email and not via text. So now I'll know as soon as it is delivered and can go out to get it.

Nummerkins
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Re: Fidelity as a one stop shop

Post by Nummerkins » Wed Aug 28, 2019 1:08 pm

Back on the topic of Fidelity...

I just transferred my Roth and Rollover IRAs to them after going from Vanguard to Merrill Edge. Fidelity gave me free trades (buy/sell Vanguard ETFs if I want) and reimbursed my ACAT out fees from ME.

I've had 529s (CMA also for cashback CC) with Fidelity for awhile due to Vanguard's $3000 minimum so this just further consolidated my accounts.

No real issues so far and I was able to get the above trade and reimbursement request completed in one phonecall.

Dvorak212
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Re: Fidelity as a one stop shop

Post by Dvorak212 » Wed Aug 28, 2019 4:37 pm

Nummerkins wrote:
Wed Aug 28, 2019 1:08 pm
Back on the topic of Fidelity...

I just transferred my Roth and Rollover IRAs to them after going from Vanguard to Merrill Edge. Fidelity gave me free trades (buy/sell Vanguard ETFs if I want) and reimbursed my ACAT out fees from ME.

I've had 529s (CMA also for cashback CC) with Fidelity for awhile due to Vanguard's $3000 minimum so this just further consolidated my accounts.

No real issues so far and I was able to get the above trade and reimbursement request completed in one phonecall.
Did you leave Merrill Edge for any particularly bad reason? Was thinking of giving them a shot down the road.

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Hector
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Re: Fidelity as a one stop shop

Post by Hector » Wed Aug 28, 2019 7:04 pm

Nummerkins wrote:
Wed Aug 28, 2019 1:08 pm
Back on the topic of Fidelity...

I just transferred my Roth and Rollover IRAs to them after going from Vanguard to Merrill Edge. Fidelity gave me free trades (buy/sell Vanguard ETFs if I want) and reimbursed my ACAT out fees from ME.

I've had 529s (CMA also for cashback CC) with Fidelity for awhile due to Vanguard's $3000 minimum so this just further consolidated my accounts.

No real issues so far and I was able to get the above trade and reimbursement request completed in one phonecall.
What kind of free trades did you get?

About free trade and reimbursed fess, is that a promotion OR did you call and asked for it? if so, was transferred amount the factor?

Nummerkins
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Re: Fidelity as a one stop shop

Post by Nummerkins » Wed Aug 28, 2019 9:31 pm

Dvorak212 wrote:
Wed Aug 28, 2019 4:37 pm
Nummerkins wrote:
Wed Aug 28, 2019 1:08 pm
Back on the topic of Fidelity...

I just transferred my Roth and Rollover IRAs to them after going from Vanguard to Merrill Edge. Fidelity gave me free trades (buy/sell Vanguard ETFs if I want) and reimbursed my ACAT out fees from ME.

I've had 529s (CMA also for cashback CC) with Fidelity for awhile due to Vanguard's $3000 minimum so this just further consolidated my accounts.

No real issues so far and I was able to get the above trade and reimbursement request completed in one phonecall.
Did you leave Merrill Edge for any particularly bad reason? Was thinking of giving them a shot down the road.
PM sent

Nummerkins
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Re: Fidelity as a one stop shop

Post by Nummerkins » Wed Aug 28, 2019 9:35 pm

Hector wrote:
Wed Aug 28, 2019 7:04 pm
What kind of free trades did you get?

About free trade and reimbursed fess, is that a promotion OR did you call and asked for it? if so, was transferred amount the factor?
Called and asked after assets were transferred. I don't know if there as any specific threshold but the rep mentioned that my assets transferred were over $100,000 which I think helped. I got 75 free trades (equities/ETFs) on each of my two accounts I think (don't know how to verify) and they are good for 2 years.

I actually have the ACAT reimbursements pending in my accounts the same day of the request.

Bronco Billy
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Re: Fidelity as a one stop shop

Post by Bronco Billy » Wed Aug 28, 2019 10:48 pm

Nummerkins wrote:
Wed Aug 28, 2019 9:35 pm
Hector wrote:
Wed Aug 28, 2019 7:04 pm
What kind of free trades did you get?

About free trade and reimbursed fess, is that a promotion OR did you call and asked for it? if so, was transferred amount the factor?
Called and asked after assets were transferred. I don't know if there as any specific threshold but the rep mentioned that my assets transferred were over $100,000 which I think helped. I got 75 free trades (equities/ETFs) on each of my two accounts I think (don't know how to verify) and they are good for 2 years.

I actually have the ACAT reimbursements pending in my accounts the same day of the request.
I think Fido wants you to register online but they have a phone number also. It says 500 free trades for over $100k.
https://rewards.fidelity.com/offers/ATP500free

tj
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Re: Fidelity as a one stop shop

Post by tj » Thu Aug 29, 2019 8:26 pm

Nummerkins wrote:
Wed Aug 28, 2019 9:31 pm
Dvorak212 wrote:
Wed Aug 28, 2019 4:37 pm
Nummerkins wrote:
Wed Aug 28, 2019 1:08 pm
Back on the topic of Fidelity...

I just transferred my Roth and Rollover IRAs to them after going from Vanguard to Merrill Edge. Fidelity gave me free trades (buy/sell Vanguard ETFs if I want) and reimbursed my ACAT out fees from ME.

I've had 529s (CMA also for cashback CC) with Fidelity for awhile due to Vanguard's $3000 minimum so this just further consolidated my accounts.

No real issues so far and I was able to get the above trade and reimbursement request completed in one phonecall.
Did you leave Merrill Edge for any particularly bad reason? Was thinking of giving them a shot down the road.
PM sent
I'd like to know as well.

boston10
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Re: Fidelity as a one stop shop

Post by boston10 » Fri Aug 30, 2019 12:57 pm

Fidelity (rather quietly) raised the rates on its FDIC-insured cash sweep ("FCASH") from .37% to 1.07% earlier this month, despite the Fed lowering rates. Somehow I missed this news until now, when I happened to see it when I clicked a link in my CMA. Not much coverage in the press, but found something here: https://www.barrons.com/articles/fideli ... 1565291732 (4th paragraph). The rates are somewhat hidden on their website, but you can see it here: https://accountsetup.fidelity.com/ftgw/ ... type=mySCA.

So for the record, even money kept in your CMA sweep is now getting a non-trivial amount of interest. Fidelity continues to impress... they're certainly not resting on their laurels.

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Re: Fidelity as a one stop shop

Post by indexfundfan » Fri Aug 30, 2019 2:03 pm

boston10 wrote:
Fri Aug 30, 2019 12:57 pm
Fidelity (rather quietly) raised the rates on its FDIC-insured cash sweep ("FCASH") from .37% to 1.07% earlier this month, despite the Fed lowering rates. Somehow I missed this news until now, when I happened to see it when I clicked a link in my CMA. Not much coverage in the press, but found something here: https://www.barrons.com/articles/fideli ... 1565291732 (4th paragraph). The rates are somewhat hidden on their website, but you can see it here: https://accountsetup.fidelity.com/ftgw/ ... type=mySCA.

So for the record, even money kept in your CMA sweep is now getting a non-trivial amount of interest. Fidelity continues to impress... they're certainly not resting on their laurels.
Here's that discussion

viewtopic.php?t=287600
My signature has been deleted.

Nummerkins
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Re: Fidelity as a one stop shop

Post by Nummerkins » Fri Aug 30, 2019 3:07 pm

tj wrote:
Thu Aug 29, 2019 8:26 pm
Nummerkins wrote:
Wed Aug 28, 2019 9:31 pm
Dvorak212 wrote:
Wed Aug 28, 2019 4:37 pm
Nummerkins wrote:
Wed Aug 28, 2019 1:08 pm
Back on the topic of Fidelity...

I just transferred my Roth and Rollover IRAs to them after going from Vanguard to Merrill Edge. Fidelity gave me free trades (buy/sell Vanguard ETFs if I want) and reimbursed my ACAT out fees from ME.

I've had 529s (CMA also for cashback CC) with Fidelity for awhile due to Vanguard's $3000 minimum so this just further consolidated my accounts.

No real issues so far and I was able to get the above trade and reimbursement request completed in one phonecall.
Did you leave Merrill Edge for any particularly bad reason? Was thinking of giving them a shot down the road.
PM sent
I'd like to know as well.
PM sent to keep this thread about Fidelity

Cash
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Re: Fidelity as a one stop shop

Post by Cash » Fri Aug 30, 2019 4:59 pm

indexfundfan wrote:
Tue Aug 20, 2019 8:08 am
MikeG62 wrote:
Tue Aug 20, 2019 7:45 am
While I don't use Fidelity as a one-stop-shop (so not entirely on topic), I would add here that I recently discovered if I initiate an ACH transfer at Fidelity early in the morning the funds arrive at my B&M bank later that same day. [If the transfer is initiated mid or later in the day it arrives the next day.]

Did not realize I could do a same day ACH transfer from Fidelity.
Yes, I posted this about one week ago

viewtopic.php?f=2&t=266538&start=850#p4697670

The cut off time for the same-day ACH is 8am ET. The money reaches the external bank around noon, but it could take your bank some time to post.
Based on your post, I went back and checked an ACH to TD Bank that I initiated yesterday morning, and sure enough, it posted yesterday and not today. This is great!

Cash
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Re: Fidelity as a one stop shop

Post by Cash » Fri Aug 30, 2019 5:02 pm

mhalley wrote:
Sun Aug 25, 2019 8:13 pm
I have the need to give a relative some money on a regular basis. I tried the bluebird card, but there are no atm fee free atms nearby. I was wondering if I could setup another cma account and fund it and give him the atm card. I use my current cma account, but the brokerage account has zero dollars. Would the 2 cma accounts be totally separate, so he could not make charges beyond the amount I put in the second cma?
TD Bank actually has a good option for this. It's the TD Go Card: https://www.td.com/us/en/personal-banki ... able-card/. They market it for teens, but you can give it to anyone. Whenever we want to add money, we just go online and it comes from our TD checking account. It can be used like any other debit card, and you can monitor the balance and purchase activity.

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indexfundfan
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Re: Fidelity as a one stop shop

Post by indexfundfan » Fri Aug 30, 2019 7:14 pm

Cash wrote:
Fri Aug 30, 2019 4:59 pm
indexfundfan wrote:
Tue Aug 20, 2019 8:08 am
MikeG62 wrote:
Tue Aug 20, 2019 7:45 am
While I don't use Fidelity as a one-stop-shop (so not entirely on topic), I would add here that I recently discovered if I initiate an ACH transfer at Fidelity early in the morning the funds arrive at my B&M bank later that same day. [If the transfer is initiated mid or later in the day it arrives the next day.]

Did not realize I could do a same day ACH transfer from Fidelity.
Yes, I posted this about one week ago

viewtopic.php?f=2&t=266538&start=850#p4697670

The cut off time for the same-day ACH is 8am ET. The money reaches the external bank around noon, but it could take your bank some time to post.
Based on your post, I went back and checked an ACH to TD Bank that I initiated yesterday morning, and sure enough, it posted yesterday and not today. This is great!
:happy
By the way, there is a limit of $25,000. Anything larger will be through next day ACH.
My signature has been deleted.

boston10
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Re: Fidelity as a one stop shop

Post by boston10 » Fri Aug 30, 2019 7:25 pm

Does anyone know how long it takes for them to lift your mobile check deposit limit? How much money and/or how much time? Any datapoints would be appreciated.

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