Fidelity as a one stop shop

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Artsdoctor
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Re: Fidelity as a one stop shop

Post by Artsdoctor » Sat Jun 15, 2019 7:42 pm

jbsmith05 wrote:
Sat Jun 15, 2019 12:21 pm
Anyone had this issue before? I entered the information from the fidelity checks (routing/account) into one of my biller's sites to pay that balance. A few days later fidelity send's me an email that the "direct debit couldn't be completed due to insufficient cash to cover the debit".

Technically this is true because I have $0 in the "checking" but via the overdraft protection to my "savings"/brokerage has plenty of cash in it and has been "over drafting" when I use the debit card without issue?

Do checks not work in the same fashion for overdraft protection?
There have been several examples upstream of people having an occasional problem with debits being refused because of insufficient funds. From what others have said, it's rare. When I first started using a Fidelity brokerage account for my "checking account," the Fidelity rep told me that he did NOT recommend keeping the cash balance at $0 and using another money market account as the back-up. For my purposes, I have no problem keeping my cash account in Fidelity Government Money Market in order to avoid a bounced check; others want that extra 10 bps in interest but that just doesn't make sense to me if there's even a rare chance of a bounced check.

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Kevin M
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Re: Fidelity as a one stop shop

Post by Kevin M » Sun Jun 16, 2019 1:52 pm

jbsmith05 wrote:
Sat Jun 15, 2019 12:21 pm
Anyone had this issue before? I entered the information from the fidelity checks (routing/account) into one of my biller's sites to pay that balance. A few days later fidelity send's me an email that the "direct debit couldn't be completed due to insufficient cash to cover the debit".

Technically this is true because I have $0 in the "checking" but via the overdraft protection to my "savings"/brokerage has plenty of cash in it and has been "over drafting" when I use the debit card without issue?

Do checks not work in the same fashion for overdraft protection?
I don't know if it's relevant, but when I got my checks, I noticed that the account number was different than the one shown on the Fidelity website (the one shown when you click the Routing Number link directly under the account title). Not knowing how to verify the account number on the checks, and being unsure which one to use, I called Fidelity and asked. The rep told me that the number shown on the website is more reliable, and that sometimes an EFT payment will get kicked back if you use the account number on the checks.

Note that a Fidelity FAQ about this tells you to use the number on the checks if you have checks, and use the number online if you don't. The rep's advice contradicts this.

I have no idea if the account number shown on the website might work better when the CMA core fund balance is 0, but I'm just throwing it out as something to consider.

I had already set up my online bill payments using the number shown on the website, and so far it is working, so I will continue to use that number for online bill payments.
Artsdoctor wrote:
Sat Jun 15, 2019 7:42 pm
There have been several examples upstream of people having an occasional problem with debits being refused because of insufficient funds. From what others have said, it's rare. When I first started using a Fidelity brokerage account for my "checking account," the Fidelity rep told me that he did NOT recommend keeping the cash balance at $0 and using another money market account as the back-up. For my purposes, I have no problem keeping my cash account in Fidelity Government Money Market in order to avoid a bounced check; others want that extra 10 bps in interest but that just doesn't make sense to me if there's even a rare chance of a bounced check.
Agreed. This is the main reason I decided to use a brokerage account instead of a CMA for online bill payments. And it may not be even 10 basis points after tax if you pay state income tax, due to the partial state tax exemption on SPAXX income.

For me, compound after-tax yield (CATY) for SPAXX is 1.41%, while for SPRXX it's 1.40%, so it's actually slightly higher for the government MM fund. CATY for FDLXX (Treasury only) is 1.46%, so only 5 basis points higher, which is about $0.17 more on $5K for 30 days; I expect my average balance to be significantly less than $5K.

If I wanted to bother scrounging up $100K to get FZDXX open in this brokerage account, CATY is 1.48%, so another couple of basis points over FDLXX, and an extra $0.10 per month on $5K.

So I'd say worst case I'm paying less than $0.25 per month for the convenience of just using the core fund, not messing with manual transfers to the secondary MM fund, and minimizing the risk of one of these fluky instances of the overdraft not working.

Kevin
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bck63
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Re: Fidelity as a one stop shop

Post by bck63 » Mon Jun 17, 2019 5:51 am

snowman wrote:
Wed Jun 12, 2019 1:57 pm
lstone19 wrote:
Wed Jun 12, 2019 12:15 pm
8foot7 wrote:
Wed Jun 12, 2019 12:01 pm
My biweekly paycheck is memo posted and available for trading and withdrawal in my Fidelity brokerage account on Thursdays at 7:30 am, a day before our “scheduled” payday on Friday.
I'm surprised Fidelity lets you at the funds a day early. As I mentioned above, I see them at my credit union as a future transaction but funds are not available as the credit union honors the scheduled transaction date (by the same token, I will see some ACH withdrawals as future as well but they don't actually get deducted until the scheduled day).
It's just one of many perks Fidelity CMA offers - DD day early, ATM fees reimbursed worldwide, free paper checks etc. It's one of those rare things in life where "too good to be true" is actually true.
+1. It is really a good deal. The other great thing is that the CMA treats money in MMFs as cash that is accessible via ATM. I don't know if other brokerages offer that, but it's great -- like having a 2% checking account.

My only wish is that, like at vanguard, you could make purchases of MMFs (and any product) directly from linked bank accounts. It's a two-step process at Fidelity. But that's a minor inconvenience.

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Artsdoctor
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Re: Fidelity as a one stop shop

Post by Artsdoctor » Mon Jun 17, 2019 8:36 am

^ I don't think it's "too good to be true" because you're paying for the CMA through forfeited interest. While you can keep your CMA balance at $0 with a backup higher-earning money market account linked to your cash account, reading previous posts will underscore that this is not fool-proof and that you may have an occasional bounced check.

Money market accounts at Fidelity almost uniformly throw off less interest than Vanguard so you're definitely paying for your Fidelity banking. However, when practiced wisely, the forfeited interest is small and the convenience is substantial when you compare it to other options out there.

marcopolo
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Re: Fidelity as a one stop shop

Post by marcopolo » Mon Jun 17, 2019 8:56 am

Artsdoctor wrote:
Mon Jun 17, 2019 8:36 am
While you can keep your CMA balance at $0 with a backup higher-earning money market account linked to your cash account, reading previous posts will underscore that this is not fool-proof and that you may have an occasional bounced check.
This sounds like an urban legend. I have been using CMA for a number of years, usually keep close to $0 in core account.
Have never had a check, or any other withdrawal "bounce". The account has always sold automatically from the MM funds to cover the withdrawal.

Under what circumstances would that not be the case?

Vanguard does pay higher rates, but then again they just eliminated their CMA-like account, so is that really an alternative to compare to?
Once in a while you get shown the light, in the strangest of places if you look at it right.

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aj76er
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Re: Fidelity as a one stop shop

Post by aj76er » Mon Jun 17, 2019 9:23 am

marcopolo wrote:
Mon Jun 17, 2019 8:56 am
Artsdoctor wrote:
Mon Jun 17, 2019 8:36 am
While you can keep your CMA balance at $0 with a backup higher-earning money market account linked to your cash account, reading previous posts will underscore that this is not fool-proof and that you may have an occasional bounced check.
This sounds like an urban legend. I have been using CMA for a number of years, usually keep close to $0 in core account.
Have never had a check, or any other withdrawal "bounce". The account has always sold automatically from the MM funds to cover the withdrawal.

Under what circumstances would that not be the case?

Vanguard does pay higher rates, but then again they just eliminated their CMA-like account, so is that really an alternative to compare to?
You can read upthread for the exact circumstances, but I believe it is due to certain holidays in which the stock market is closed but banks are still open.
"Buy-and-hold, long-term, all-market-index strategies, implemented at rock-bottom cost, are the surest of all routes to the accumulation of wealth" - John C. Bogle

marcopolo
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Re: Fidelity as a one stop shop

Post by marcopolo » Mon Jun 17, 2019 9:48 am

aj76er wrote:
Mon Jun 17, 2019 9:23 am
marcopolo wrote:
Mon Jun 17, 2019 8:56 am
Artsdoctor wrote:
Mon Jun 17, 2019 8:36 am
While you can keep your CMA balance at $0 with a backup higher-earning money market account linked to your cash account, reading previous posts will underscore that this is not fool-proof and that you may have an occasional bounced check.
This sounds like an urban legend. I have been using CMA for a number of years, usually keep close to $0 in core account.
Have never had a check, or any other withdrawal "bounce". The account has always sold automatically from the MM funds to cover the withdrawal.

Under what circumstances would that not be the case?

Vanguard does pay higher rates, but then again they just eliminated their CMA-like account, so is that really an alternative to compare to?
You can read upthread for the exact circumstances, but I believe it is due to certain holidays in which the stock market is closed but banks are still open.
The couple examples i found upthread were cases where there was separate linked brokerage account, and one of those was speculation that a check would have bounced had the customer not moved the money manually. If they could move it manually on the holiday, it is not clear the auto would not have done the same thing. In any case, is that the same as keeping the MM position in the CMA account instead of in a linked brokerage? I don't link to my brokerage account. I keep a FZDXX position in the CMA account. I have not specifically checked to see what happens on a Holiday, but i have been using this for a number of years, never had an issue.
Once in a while you get shown the light, in the strangest of places if you look at it right.

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Kevin M
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Re: Fidelity as a one stop shop

Post by Kevin M » Mon Jun 17, 2019 7:14 pm

Artsdoctor wrote:
Mon Jun 17, 2019 8:36 am
Money market accounts at Fidelity almost uniformly throw off less interest than Vanguard so you're definitely paying for your Fidelity banking. However, when practiced wisely, the forfeited interest is small and the convenience is substantial when you compare it to other options out there.
marcopolo wrote:
Mon Jun 17, 2019 8:56 am
Vanguard does pay higher rates, but then again they just eliminated their CMA-like account, so is that really an alternative to compare to?
While we will no longer have a Vanguard checking account alternative, we can still use higher-yielding Vanguard MM funds for savings, which is what I'm doing. So, I think Artsdoctor is correct if we interpret "paying for your Fidelity banking" as using Fidelity as a one stop shop, which is what this thread is about.

Kevin
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ribonucleic
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Re: Fidelity as a one stop shop

Post by ribonucleic » Thu Jun 20, 2019 5:59 pm

I think I know the answers to these 3 questions, but I'd like someone to check my work.

1) According to the Wiki, a Cash Management Account alone (with no brokerage account)...

"Can buy MM funds, ETF, MFs;"

Does that include both Fidelity money market funds (i.e. FDLXX) and outside mutual funds (i.e. VWIUX - which beats the pants off the Fidelity equivalent)?

2) Can the CMA be set so that any money market fund it holds is not automatically tapped to satisfy a demand on the FDIC account?

3) Is a customer-initiated transfer within the CMA from a money market fund it holds to the FDIC account completed instantly? (As it seems an overdraft would be?)

mervinj7
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Re: Fidelity as a one stop shop

Post by mervinj7 » Fri Jun 21, 2019 10:42 am

ribonucleic wrote:
Thu Jun 20, 2019 5:59 pm
I think I know the answers to these 3 questions, but I'd like someone to check my work.

1) According to the Wiki, a Cash Management Account alone (with no brokerage account)...

"Can buy MM funds, ETF, MFs;"

Does that include both Fidelity money market funds (i.e. FDLXX) and outside mutual funds (i.e. VWIUX - which beats the pants off the Fidelity equivalent)?
I tried that particular fund (VWIUX) and it can't be purchased in a CMA nor a regular brokerage account.
Error:(010952) The mutual fund you requested to trade is an Advisor Fund and is not available for retail trading. For more information, contact a Fidelity Representative at 1-800-544-6666.
You can, however, purchase the investor share class version instead (VWITX) for a $75 fee. As far as I know, Vanguard limits sales of Admiral share class versions of some of its funds to outside brokerages. Until relatively recently, you couldn't purchase any Admiral funds at Fidelity but that's already changing.
viewtopic.php?f=10&t=264566&start=50

For your other questions, I would assume the answer is no but you can always chat with a rep to find out. Why not just keep your Vanguard funds at Vanguard? I wouldn't transfer them to Fidelity unless there's a significant transfer bonus.

theplayer11
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Re: Fidelity as a one stop shop

Post by theplayer11 » Fri Jun 21, 2019 11:00 am

Spirit Rider wrote:
Wed Jun 12, 2019 3:26 pm
lstone19 wrote:
Wed Jun 12, 2019 12:15 pm
I'm surprised Fidelity lets you at the funds a day early. As I mentioned above, I see them at my credit union as a future transaction but funds are not available as the credit union honors the scheduled transaction date (by the same token, I will see some ACH withdrawals as future as well but they don't actually get deducted until the scheduled day).
You need a different credit union. My credit union has as always made funds available one day before the scheduled pay date. It is a comparative benefit they actively market.
curious, why does 1 day matter so much?

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corn18
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Re: Fidelity as a one stop shop

Post by corn18 » Fri Jun 21, 2019 11:05 am

theplayer11 wrote:
Fri Jun 21, 2019 11:00 am
Spirit Rider wrote:
Wed Jun 12, 2019 3:26 pm
lstone19 wrote:
Wed Jun 12, 2019 12:15 pm
I'm surprised Fidelity lets you at the funds a day early. As I mentioned above, I see them at my credit union as a future transaction but funds are not available as the credit union honors the scheduled transaction date (by the same token, I will see some ACH withdrawals as future as well but they don't actually get deducted until the scheduled day).
You need a different credit union. My credit union has as always made funds available one day before the scheduled pay date. It is a comparative benefit they actively market.
curious, why does 1 day matter so much?
Agree. And it's one day, one time. You still get the next paycheck deposited 2 weeks later.
Don't do something, just stand there!

MrBobcat
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Re: Fidelity as a one stop shop

Post by MrBobcat » Fri Jun 21, 2019 11:17 am

I recently finished transferring all my assets to fidelity, did it all online. Do I have to request that they reimburse the $95 closing fee per account from the old broker or will they do it automatically?

mervinj7
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Re: Fidelity as a one stop shop

Post by mervinj7 » Fri Jun 21, 2019 12:26 pm

MrBobcat wrote:
Fri Jun 21, 2019 11:17 am
I recently finished transferring all my assets to fidelity, did it all online. Do I have to request that they reimburse the $95 closing fee per account from the old broker or will they do it automatically?
You should request it (YMMV). Many times, your old broker will take the fee before they transfer the assets, so Fidelity isn't even aware of what the fee or when it was charged. Also, what broker still charges $95 per account to close it? Seems ridiculous.

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walletless
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Re: Fidelity as a one stop shop

Post by walletless » Fri Jun 21, 2019 12:35 pm

There are definitely some wierdness that goes in with Fidelity cash Management when backed by brokerage account.

I've set my CMA account to have minimum of $750, and withdraw $250 at a time from my brokerage account to meet that. This is in addition to $2,000 which I have in SPRXX in In my CMA account.

I have about $8,000 in brokerage accounts core position. Usually, to pay any withdrawals from CMA, the amount will withdraw from the ~$750 balance in my CMA. For excess withdrawals it withdraws from brokerage account enough to pay the request plus whatever is needed to maintain the $750 balance.

Yesterday I had a withdrawal request of $2,200 from my CMA. However it paid that with the $750 in core, and remaining by selling SPRXX in CMA (instead of withdrawing from brokerage). Not a big deal but this was very surprising for me since the behavior is inconsistent from past withdrawal.

MrBobcat
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Re: Fidelity as a one stop shop

Post by MrBobcat » Fri Jun 21, 2019 12:45 pm

mervinj7 wrote:
Fri Jun 21, 2019 12:26 pm
MrBobcat wrote:
Fri Jun 21, 2019 11:17 am
I recently finished transferring all my assets to fidelity, did it all online. Do I have to request that they reimburse the $95 closing fee per account from the old broker or will they do it automatically?
You should request it (YMMV). Many times, your old broker will take the fee before they transfer the assets, so Fidelity isn't even aware of what the fee or when it was charged. Also, what broker still charges $95 per account to close it? Seems ridiculous.
Ed Jones, so happy to be out of their clutches, even if I don't get reimbursed the $380.

ribonucleic
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Re: Fidelity as a one stop shop

Post by ribonucleic » Fri Jun 21, 2019 2:17 pm

ribonucleic wrote:
Thu Jun 20, 2019 5:59 pm
2) Can the CMA be set so that any money market fund it holds is not automatically tapped to satisfy a demand on the FDIC account?

3) Is a customer-initiated transfer within the CMA from a money market fund it holds to the FDIC account completed instantly? (As it seems an overdraft would be?)
The Fidelity chat rep just said:

- Yes. No-Overdraft is the default.

- No. At best it would be intraday.

The latter puzzles me. Why can they instantly pull money from the money market fund to satisfy a debit card processor but not to satisfy me?

(Anyway: ~60 second wait for a chat agent with English good enough to pass for a native speaker, if he isn't one. :thumbsup)

engineerbme
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Re: Fidelity as a one stop shop

Post by engineerbme » Fri Jun 21, 2019 2:26 pm

Horsefly wrote:
Sat Jun 08, 2019 10:59 am
grp2c wrote:
Fri Jun 07, 2019 11:25 pm
Since transitioning to using the ATM/debit card with my fidelity brokerage account, I've noticed that an ATM withdrawal doesn't post to the account for 2-3 business days. Years ago when I used the ATM card with the fidelity CMA account, I thought it posted same day. Curious if others have noticed this.

Also, to reduce the manual transactions of buying FZDXX, I've setup an auto-investment of 15k of FZDXX twice a month after payday and I keep a minimum balance of 30k in the account.
I get a text alert from Fidelity before I can reach for the cash out of the ATM, and as far as I can tell the ATM withdrawal posts almost right away. The reimbursement for the ATM fee takes a few days though.
how do you setup text alerts, I entered in my phone and verified it, but under alerts for cash management it only shows email as options to add...

bck63
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Re: Fidelity as a one stop shop

Post by bck63 » Fri Jun 21, 2019 2:32 pm

engineerbme wrote:
Fri Jun 21, 2019 2:26 pm
Horsefly wrote:
Sat Jun 08, 2019 10:59 am
grp2c wrote:
Fri Jun 07, 2019 11:25 pm
Since transitioning to using the ATM/debit card with my fidelity brokerage account, I've noticed that an ATM withdrawal doesn't post to the account for 2-3 business days. Years ago when I used the ATM card with the fidelity CMA account, I thought it posted same day. Curious if others have noticed this.

Also, to reduce the manual transactions of buying FZDXX, I've setup an auto-investment of 15k of FZDXX twice a month after payday and I keep a minimum balance of 30k in the account.
I get a text alert from Fidelity before I can reach for the cash out of the ATM, and as far as I can tell the ATM withdrawal posts almost right away. The reimbursement for the ATM fee takes a few days though.
how do you setup text alerts, I entered in my phone and verified it, but under alerts for cash management it only shows email as options to add...
I’d like to know this too. Would be helpful.

engineerbme
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Re: Fidelity as a one stop shop

Post by engineerbme » Fri Jun 21, 2019 2:43 pm

bck63 wrote:
Fri Jun 21, 2019 2:32 pm
engineerbme wrote:
Fri Jun 21, 2019 2:26 pm
Horsefly wrote:
Sat Jun 08, 2019 10:59 am
grp2c wrote:
Fri Jun 07, 2019 11:25 pm
Since transitioning to using the ATM/debit card with my fidelity brokerage account, I've noticed that an ATM withdrawal doesn't post to the account for 2-3 business days. Years ago when I used the ATM card with the fidelity CMA account, I thought it posted same day. Curious if others have noticed this.

Also, to reduce the manual transactions of buying FZDXX, I've setup an auto-investment of 15k of FZDXX twice a month after payday and I keep a minimum balance of 30k in the account.
I get a text alert from Fidelity before I can reach for the cash out of the ATM, and as far as I can tell the ATM withdrawal posts almost right away. The reimbursement for the ATM fee takes a few days though.
how do you setup text alerts, I entered in my phone and verified it, but under alerts for cash management it only shows email as options to add...
I’d like to know this too. Would be helpful.
i figured it out! first you login and go to https://alertable.fidelity.com/ftgw/ale ... rtsSummary then click on Cash Management, then under the account you want to add alerts for you click on the 'alerts setup' tab which is next to the 'active alerts' tab...there you click on debit card usage, and you can select your cell phone

to add your cell phone just go to the 'manage email and cell phone' link above.

bck63
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Re: Fidelity as a one stop shop

Post by bck63 » Fri Jun 21, 2019 3:35 pm

engineerbme wrote:
Fri Jun 21, 2019 2:43 pm
bck63 wrote:
Fri Jun 21, 2019 2:32 pm
engineerbme wrote:
Fri Jun 21, 2019 2:26 pm
Horsefly wrote:
Sat Jun 08, 2019 10:59 am
grp2c wrote:
Fri Jun 07, 2019 11:25 pm
Since transitioning to using the ATM/debit card with my fidelity brokerage account, I've noticed that an ATM withdrawal doesn't post to the account for 2-3 business days. Years ago when I used the ATM card with the fidelity CMA account, I thought it posted same day. Curious if others have noticed this.

Also, to reduce the manual transactions of buying FZDXX, I've setup an auto-investment of 15k of FZDXX twice a month after payday and I keep a minimum balance of 30k in the account.
I get a text alert from Fidelity before I can reach for the cash out of the ATM, and as far as I can tell the ATM withdrawal posts almost right away. The reimbursement for the ATM fee takes a few days though.
how do you setup text alerts, I entered in my phone and verified it, but under alerts for cash management it only shows email as options to add...
I’d like to know this too. Would be helpful.
i figured it out! first you login and go to https://alertable.fidelity.com/ftgw/ale ... rtsSummary then click on Cash Management, then under the account you want to add alerts for you click on the 'alerts setup' tab which is next to the 'active alerts' tab...there you click on debit card usage, and you can select your cell phone

to add your cell phone just go to the 'manage email and cell phone' link above.
Thanks!! :sharebeer

MrBobcat
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Re: Fidelity as a one stop shop

Post by MrBobcat » Fri Jun 21, 2019 3:59 pm

mervinj7 wrote:
Fri Jun 21, 2019 12:26 pm
MrBobcat wrote:
Fri Jun 21, 2019 11:17 am
I recently finished transferring all my assets to fidelity, did it all online. Do I have to request that they reimburse the $95 closing fee per account from the old broker or will they do it automatically?
You should request it (YMMV). Many times, your old broker will take the fee before they transfer the assets, so Fidelity isn't even aware of what the fee or when it was charged. Also, what broker still charges $95 per account to close it? Seems ridiculous.
I called them up, guy was very helpful. He looked up account closing fees for the various brokers on their list, it matched what I said and he took care of the fee on all 4 of the accounts we moved. I'm so happy I moved to Fidelity from EJ.

gpburdell
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Re: Fidelity as a one stop shop

Post by gpburdell » Fri Jun 21, 2019 5:49 pm

Artsdoctor wrote:
Mon Jun 17, 2019 8:36 am
^ I don't think it's "too good to be true" because you're paying for the CMA through forfeited interest. While you can keep your CMA balance at $0 with a backup higher-earning money market account linked to your cash account, reading previous posts will underscore that this is not fool-proof and that you may have an occasional bounced check.
You don't have to link CMA to another account. Just put all the cash in a Fido money market like SPRXX in CMA and it is treated as cash. I pay most of my bills (5-6k/month) with CMA using SPRXX and have never had an issue in years. Though I always make sure there is a buffer of a couple thousand. I don't even have CMA linked to another account as I'm not a fan of something pulling automatically from another account with out my explicit instruction.

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corn18
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Re: Fidelity as a one stop shop

Post by corn18 » Fri Jun 21, 2019 6:27 pm

gpburdell wrote:
Fri Jun 21, 2019 5:49 pm
Artsdoctor wrote:
Mon Jun 17, 2019 8:36 am
^ I don't think it's "too good to be true" because you're paying for the CMA through forfeited interest. While you can keep your CMA balance at $0 with a backup higher-earning money market account linked to your cash account, reading previous posts will underscore that this is not fool-proof and that you may have an occasional bounced check.
You don't have to link CMA to another account. Just put all the cash in a Fido money market like SPRXX in CMA and it is treated as cash. I pay most of my bills (5-6k/month) with CMA using SPRXX and have never had an issue in years. Though I always make sure there is a buffer of a couple thousand. I don't even have CMA linked to another account as I'm not a fan of something pulling automatically from another account with out my explicit instruction.
This is how I set it up as well except I manually put my paycheck into FZDXX twice a month. Unless I forget and it sits in core FDIC. Doesn't really bug me either way as this is just a checking account.

I'm with you and don't want anything linked to my daily checking account. This just makes sense to me.
Don't do something, just stand there!

montee4
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Re: Fidelity as a one stop shop

Post by montee4 » Fri Jun 21, 2019 6:44 pm

One thing for you all to keep in mind. This won't happen very often to most people, but I recently submitted the paperwork to Fidelity to add my wife as a Joint Owner to the brokerage account that is the overdraft source to my CMA. Once they added her, it automatically cancelled my Cash Manager. I noticed it as I was getting an "insufficient fund" message at the ATM". There was no warning or message that the Cash Manager would be or was cancelled. I was lucky that I only saw it at the ATM and was able to re-enable the overdraft. Just something to think about if you change account info on the overdraft source account. Other than that, I have had no issues with the setup. I leave the CMA with a $0 balance, and do billpay, checks and ATM all from the CMA account.

Noimagination
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Re: Fidelity as a one stop shop

Post by Noimagination » Tue Jul 02, 2019 3:43 pm

SagaciousTraveler wrote:
Wed Dec 19, 2018 11:50 am
Credit Card: The 2% card isn't' for me. I have the Citi Double and like you said, its my baseline card used when my others aren't.

Bank: We don't take on debt, all we used our Credit Union for was Bill Pay, Checks, Direct Deposit and ATM. So moving from our Credit Union to Fidelity actually helped us due to more ATM options and Branches.

Accounts: We had four accounts at Vanguard, we now have four accounts at fidelity. There is literally very little downside here as the funds we are invested in all have low expense fees across all the investment firms. The only thing I saw that Vanguard was better was the settlement fund. Fidelity i believe is 1.97% while Vanguard is 2.15%ish. Nothing to lose sleep over.

I also mentioned in another post that the consolidation makes it easier on my wife if something were to happen to me.

In conclusion I do not agree with your blanket statement that consolidation is inferior. For my family, it was an upgrade. However, I will agree that its not for everyone's situation.

Thanks.
Has anybody else run into issues trying to autopay their Citibank credit cards (i.e. Double Cash 2% cash back card) using a Fidelity CMA account? I haven't been able to get this working, but I can pay my Chase credit cards without any issues. When I spoke to the Citi rep they said it was because the CMA account was coding as a savings account, not a checking account, and they don't allow autopay with savings accounts. Fidelity didn't have any solutions to this problem. This is the only issue preventing me from closing my old checking account and completely consolidating with Fidelity.

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welderwannabe
Posts: 1090
Joined: Fri Jun 16, 2017 8:32 am

Re: Fidelity as a one stop shop

Post by welderwannabe » Tue Jul 02, 2019 4:47 pm

Noimagination wrote:
Tue Jul 02, 2019 3:43 pm
Has anybody else run into issues trying to autopay their Citibank credit cards (i.e. Double Cash 2% cash back card) using a Fidelity CMA account? I haven't been able to get this working, but I can pay my Chase credit cards without any issues. When I spoke to the Citi rep they said it was because the CMA account was coding as a savings account, not a checking account, and they don't allow autopay with savings accounts. Fidelity didn't have any solutions to this problem. This is the only issue preventing me from closing my old checking account and completely consolidating with Fidelity.
Fidelity has their 2% cash back credit card. Not answering the question you asked, but its a solution to your problem.
I am not an investment professional, but I did stay at a Holiday Inn Express last night.

HomeStretch
Posts: 1429
Joined: Thu Dec 27, 2018 3:06 pm

Re: Fidelity as a one stop shop

Post by HomeStretch » Tue Jul 02, 2019 5:12 pm

Noimagination wrote:
Tue Jul 02, 2019 3:43 pm
Has anybody else run into issues trying to autopay their Citibank credit cards (i.e. Double Cash 2% cash back card) using a Fidelity CMA account? I haven't been able to get this working, but I can pay my Chase credit cards without any issues. When I spoke to the Citi rep they said it was because the CMA account was coding as a savings account, not a checking account, and they don't allow autopay with savings accounts. Fidelity didn't have any solutions to this problem. This is the only issue preventing me from closing my old checking account and completely consolidating with Fidelity.
I don’t think the Citi rep is correct. The Fidelity website says the CMA is a “checking account” and I confirmed this today with a rep while I was setting up a link at another brokerage to my Fidelity CMA account.

Lyrrad
Posts: 71
Joined: Sun Jul 27, 2008 10:59 am

Re: Fidelity as a one stop shop

Post by Lyrrad » Tue Jul 02, 2019 6:26 pm

Noimagination wrote:
Tue Jul 02, 2019 3:43 pm

Has anybody else run into issues trying to autopay their Citibank credit cards (i.e. Double Cash 2% cash back card) using a Fidelity CMA account? I haven't been able to get this working, but I can pay my Chase credit cards without any issues. When I spoke to the Citi rep they said it was because the CMA account was coding as a savings account, not a checking account, and they don't allow autopay with savings accounts. Fidelity didn't have any solutions to this problem. This is the only issue preventing me from closing my old checking account and completely consolidating with Fidelity.
I’ve set up autopay on all my Citi cards without issue from my Cash Management account.

Spirit Rider
Posts: 11182
Joined: Fri Mar 02, 2007 2:39 pm

Re: Fidelity as a one stop shop

Post by Spirit Rider » Tue Jul 02, 2019 6:40 pm

HomeStretch wrote:
Tue Jul 02, 2019 5:12 pm
Noimagination wrote:
Tue Jul 02, 2019 3:43 pm
Has anybody else run into issues trying to autopay their Citibank credit cards (i.e. Double Cash 2% cash back card) using a Fidelity CMA account? I haven't been able to get this working, but I can pay my Chase credit cards without any issues. When I spoke to the Citi rep they said it was because the CMA account was coding as a savings account, not a checking account, and they don't allow autopay with savings accounts. Fidelity didn't have any solutions to this problem. This is the only issue preventing me from closing my old checking account and completely consolidating with Fidelity.
I don’t think the Citi rep is correct. The Fidelity website says the CMA is a “checking account” and I confirmed this today with a rep while I was setting up a link at another brokerage to my Fidelity CMA account.
This sounds like a Citibank problem. I have been autopaying dozens of different accounts including several Citibank credit cards with my Fidelity CMA account since 2005 (when it was introduced as the mySmart Cash account).

doingwell
Posts: 20
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Location: MA

Re: Fidelity as a one stop shop

Post by doingwell » Tue Jul 02, 2019 8:56 pm

Spirit Rider wrote:
Tue Jul 02, 2019 6:40 pm
HomeStretch wrote:
Tue Jul 02, 2019 5:12 pm
Noimagination wrote:
Tue Jul 02, 2019 3:43 pm
Has anybody else run into issues trying to autopay their Citibank credit cards (i.e. Double Cash 2% cash back card) using a Fidelity CMA account? I haven't been able to get this working, but I can pay my Chase credit cards without any issues. When I spoke to the Citi rep they said it was because the CMA account was coding as a savings account, not a checking account, and they don't allow autopay with savings accounts. Fidelity didn't have any solutions to this problem. This is the only issue preventing me from closing my old checking account and completely consolidating with Fidelity.
I don’t think the Citi rep is correct. The Fidelity website says the CMA is a “checking account” and I confirmed this today with a rep while I was setting up a link at another brokerage to my Fidelity CMA account.
This sounds like a Citibank problem. I have been autopaying dozens of different accounts including several Citibank credit cards with my Fidelity CMA account since 2005 (when it was introduced as the mySmart Cash account).
I just moved to Fidelity and set up autopay with the CMA to Citi Double Cash. It executed this week without a hitch. I used the very long form of my account number (>15 digits!) and coded the account as checking if asked.

Noimagination
Posts: 2
Joined: Tue Jul 02, 2019 3:29 pm

Re: Fidelity as a one stop shop

Post by Noimagination » Tue Jul 02, 2019 9:01 pm

That's good to know that some people have been successful linking their CMA account with Citi Cards for auto payment. I also assume the problem is with Citi Cards, but they haven't been too willing to help resolve this matter. I have considered cancelling my double cash card and going with the Fidelity 2% cashback credit card, but I don't think that is a good long-term solution to the problem. I also chatted with Fidelity again this afternoon to see if they had any thoughts on the matter, and they recommended using the e-bill pay option from Fidelity (which allows you to pay your bill in full each month), or using the account number printed on my CMA checks (starts with 771) instead of the normal 17 digit account number. The Fidelity rep also confirmed that the CMA account should code up as a Checking account through United Missouri Bank, so it's odd that it isn't working.

arf30
Posts: 542
Joined: Sat Dec 28, 2013 11:55 am

Re: Fidelity as a one stop shop

Post by arf30 » Tue Jul 02, 2019 9:22 pm

I've been autopaying the double cash from my CMA with no issues using the longer account number found on the website, vs the shorter one on the checks. Have moved most spending over to the Fidelity card anyway since it automatically sends cash back.

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walletless
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Re: Fidelity as a one stop shop

Post by walletless » Wed Jul 03, 2019 8:20 pm

Have been using the CMA + Brokerage combination for a month now. Love this setup. The only thing I really miss is Zelle integration. Paying friends using Chase quickpay was so convenient. I wish Fidelity integrates with Zelle..

mervinj7
Posts: 1011
Joined: Thu Mar 27, 2014 3:10 pm

Re: Fidelity as a one stop shop

Post by mervinj7 » Fri Jul 05, 2019 9:52 am

walletless wrote:
Wed Jul 03, 2019 8:20 pm
Have been using the CMA + Brokerage combination for a month now. Love this setup. The only thing I really miss is Zelle integration. Paying friends using Chase quickpay was so convenient. I wish Fidelity integrates with Zelle..

Same here. I still have my CapOne360 account for the sole purposes of using Zelle. In the end, I decided that it's probably better that I don't use Zelle with my primary checking account.

drgenefish
Posts: 48
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Re: Fidelity as a one stop shop

Post by drgenefish » Sat Jul 13, 2019 2:27 pm

- I don't want the ability to withdraw Cash from an ATM
- I don't care about the protection element of having a CMA and brokerage and setting a limit, etc (I'll have only $25,000 or so in there and I trust Fidelity's fraud protection enough to not worry about that)

is there any advantage to get the CMA AND Brokerage? Can I just open the brokerage and do everything?

thank you.

ShadowRegent
Posts: 81
Joined: Sun Jan 04, 2015 12:52 pm

Re: Fidelity as a one stop shop

Post by ShadowRegent » Sat Jul 13, 2019 2:47 pm

drgenefish wrote:
Sat Jul 13, 2019 2:27 pm
- I don't want the ability to withdraw Cash from an ATM
- I don't care about the protection element of having a CMA and brokerage and setting a limit, etc (I'll have only $25,000 or so in there and I trust Fidelity's fraud protection enough to not worry about that)

is there any advantage to get the CMA AND Brokerage? Can I just open the brokerage and do everything?

thank you.
You can just use the brokerage. It's what I do, and it works great. You can use SPAXX as the core position (sweep) as well.

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indexfundfan
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Contact:

Re: Fidelity as a one stop shop

Post by indexfundfan » Sat Jul 13, 2019 5:55 pm

drgenefish wrote:
Sat Jul 13, 2019 2:27 pm
- I don't want the ability to withdraw Cash from an ATM
- I don't care about the protection element of having a CMA and brokerage and setting a limit, etc (I'll have only $25,000 or so in there and I trust Fidelity's fraud protection enough to not worry about that)

is there any advantage to get the CMA AND Brokerage? Can I just open the brokerage and do everything?

thank you.
Brokerage alone can do everything. CMA is needed only if you want free ATM usage.
My signature has been deleted.

protagonist
Posts: 5903
Joined: Sun Dec 26, 2010 12:47 pm

Re: Fidelity as a one stop shop

Post by protagonist » Sat Jul 13, 2019 6:30 pm

BogleMelon wrote:
Sat Dec 15, 2018 9:33 pm
I am thinking of moving my Roth (currently at Vanguard), Charles Schwab checking and Ally saving all to Fidelity to simplify my life.
My 3 questions are:
1- How to do such setup in Fido to maintain the same privileges as Charles and Ally? In other words how to have an alternative to checking with all the free ATM's, salary deposit..etc and earn interest in the same time with a simple setup?
2- What things I have to keep in mind to roll my Roth IRA's? (Am I limited to certain amount of rollovers per year for example?)
3- Is there any disadvantage to this setup vs my current one?

Thanks!
Simplification is great.

I can't answer regarding your Roths.

If you can make an initial deposit of $100K (which you do not have to maintain), you can get into money market FZDXX which has a high interest rate (not sure what it is now but I think in excess of 2.25%). Otherwise you can keep cash in a core account for spending purposes, and keep excess cash in a high interest internet bank and move it into Fidelity as needed.

You can get a check book and an ATM card....no fees withdrawing money with the ATM card and no charge for checks. I forget if there is a foreign transaction fee....if so it is not onerous.

Any bills that allow you to pay electronically can be easily linked to your Fidelity account.

If you overdraw your cash, you just pay margin interest which is much lower than bank fees.

It's very simple to link external accounts to Fidelity and transfers are easy and fast.

It's all very simple. I do it. Call Fidelity and a rep would be happy to answer all your questions.

edge
Posts: 3427
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Location: NY

Re: Fidelity as a one stop shop

Post by edge » Sat Jul 13, 2019 7:01 pm

Cma has been working to pay my Citi Card. I use the acct and routing numbers displayed on the online account.

Noimagination wrote:
Tue Jul 02, 2019 3:43 pm
SagaciousTraveler wrote:
Wed Dec 19, 2018 11:50 am
Credit Card: The 2% card isn't' for me. I have the Citi Double and like you said, its my baseline card used when my others aren't.

Bank: We don't take on debt, all we used our Credit Union for was Bill Pay, Checks, Direct Deposit and ATM. So moving from our Credit Union to Fidelity actually helped us due to more ATM options and Branches.

Accounts: We had four accounts at Vanguard, we now have four accounts at fidelity. There is literally very little downside here as the funds we are invested in all have low expense fees across all the investment firms. The only thing I saw that Vanguard was better was the settlement fund. Fidelity i believe is 1.97% while Vanguard is 2.15%ish. Nothing to lose sleep over.

I also mentioned in another post that the consolidation makes it easier on my wife if something were to happen to me.

In conclusion I do not agree with your blanket statement that consolidation is inferior. For my family, it was an upgrade. However, I will agree that its not for everyone's situation.

Thanks.
Has anybody else run into issues trying to autopay their Citibank credit cards (i.e. Double Cash 2% cash back card) using a Fidelity CMA account? I haven't been able to get this working, but I can pay my Chase credit cards without any issues. When I spoke to the Citi rep they said it was because the CMA account was coding as a savings account, not a checking account, and they don't allow autopay with savings accounts. Fidelity didn't have any solutions to this problem. This is the only issue preventing me from closing my old checking account and completely consolidating with Fidelity.

captpete
Posts: 145
Joined: Mon Nov 17, 2014 1:45 pm

Re: Fidelity as a one stop shop

Post by captpete » Sun Jul 14, 2019 8:45 am

Good morning,

I recently moved my HSA to fidelity and then happened upon this post. I then opened a CMA with fidelity. I am hesitant to pull the trigger on funding the account. The ER for the MM at fidelity is .47 and with VG is .16. We are only talking 30k or so, part of my Emergency fund. I initially looked at the CMA as a better alternative than my PNC checking account and then thought, "if i were more diligent on simply making the transfer to VG I could save on the expense ratio."

So my question is, Is it better to simply use our standard PNC checking account with say, $5-6k in it for immediate expenses and the rest with VG keeping the emergency fund in VG MM? How hard is it to get money out of VG? As we have not done that yet.

Does it still make sense to move to fidelity CMA?

I can't think of any reason to keep PNC other than changing our auto payments and that they do our Medallion Signature for her Simple IRA transfers.

The only big ticket item is our property tax bill we pay in September.

Any advise.

Thanks

Pete

snowman
Posts: 907
Joined: Thu Jan 31, 2013 12:59 pm

Re: Fidelity as a one stop shop

Post by snowman » Sun Jul 14, 2019 9:30 am

captpete wrote:
Sun Jul 14, 2019 8:45 am
Good morning,

I recently moved my HSA to fidelity and then happened upon this post. I then opened a CMA with fidelity. I am hesitant to pull the trigger on funding the account. The ER for the MM at fidelity is .47 and with VG is .16. We are only talking 30k or so, part of my Emergency fund. I initially looked at the CMA as a better alternative than my PNC checking account and then thought, "if i were more diligent on simply making the transfer to VG I could save on the expense ratio."

So my question is, Is it better to simply use our standard PNC checking account with say, $5-6k in it for immediate expenses and the rest with VG keeping the emergency fund in VG MM? How hard is it to get money out of VG? As we have not done that yet.

Does it still make sense to move to fidelity CMA?

I can't think of any reason to keep PNC other than changing our auto payments and that they do our Medallion Signature for her Simple IRA transfers.

The only big ticket item is our property tax bill we pay in September.

Any advise.

Thanks

Pete
If I were you...

I would make Fidelity brokerage my regular checking account, SPAXX as sweep vehicle (so you in essence earn 2% interest in your checking account with no work on your part). Fidelity website, support and capabilities much stronger than PNC, there is no comparison.

Then set up link between Fidelity and Vanguard, you can move money quickly if needed (push available next day).

Finally, property taxes should go on the CC with a good sign up bonus (or multiple cards if the bill is really high).

MisterBill
Posts: 423
Joined: Thu Dec 24, 2015 3:21 pm

Re: Fidelity as a one stop shop

Post by MisterBill » Tue Jul 16, 2019 1:07 am

captpete wrote:
Sun Jul 14, 2019 8:45 am
The ER for the MM at fidelity is .47 and with VG is .16. We are only talking 30k or so, part of my Emergency fund. I initially looked at the CMA as a better alternative than my PNC checking account and then thought, "if i were more diligent on simply making the transfer to VG I could save on the expense ratio."
Is the yield on the Vanguard MM fund actually 0.3% higher? That's really what you need to be looking at, not the ER.

User avatar
petercooperjr
Posts: 157
Joined: Tue Dec 18, 2007 9:24 am

Re: Fidelity as a one stop shop

Post by petercooperjr » Tue Jul 16, 2019 7:49 am

MisterBill wrote:
Tue Jul 16, 2019 1:07 am
Is the yield on the Vanguard MM fund actually 0.3% higher? That's really what you need to be looking at, not the ER.
You made me curious, so I looked it up. As of this moment:
Vanguard Prime Money Market (VMMXX): ER 0.16%, SEC 7-day yield 2.29%
Fidelity Money Market (SPRXX): ER 0.42%, SEC 7-day yield 2.14%

Vanguard Federal Money Market (default settlement account, VMFXX): ER 0.11%, SEC 7-day yield 2.28%
Fidelity Government Money Market (option for settlement account in their "normal" (non-CMA) brokerage account, SPAXX): ER 0.42%, SEC 7-day yield 2.03%


I didn't do any research on if the current yield differences are "typical", but as of now Vanguard is certainly giving more yield, though not as much as the ER differences would suggest.

I sure would like that as Fidelity keeps dropping their expenses to compete with the likes of Vanguard (offering the zero-ER funds and the like) that they try competing better with their MM funds too. Though I suspect it may be where they actually make a lot of their money (in the "management fee" part of the ER) and they're not going to want to give that up. That's probably really where the funding to handle giving out "free checking" and the like comes from.

User avatar
corn18
Posts: 1478
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Re: Fidelity as a one stop shop

Post by corn18 » Tue Jul 16, 2019 8:13 am

FZDXX is 2.26% 7 day yield (0.3% ER). $100k minimum but once you buy $100k, there is no minimum. That's what I use @ FIDO.
Don't do something, just stand there!

captpete
Posts: 145
Joined: Mon Nov 17, 2014 1:45 pm

Re: Fidelity as a one stop shop

Post by captpete » Wed Jul 17, 2019 7:59 am

snowman wrote:
Sun Jul 14, 2019 9:30 am
captpete wrote:
Sun Jul 14, 2019 8:45 am
Good morning,

I recently moved my HSA to fidelity and then happened upon this post. I then opened a CMA with fidelity. I am hesitant to pull the trigger on funding the account. The ER for the MM at fidelity is .47 and with VG is .16. We are only talking 30k or so, part of my Emergency fund. I initially looked at the CMA as a better alternative than my PNC checking account and then thought, "if i were more diligent on simply making the transfer to VG I could save on the expense ratio."

So my question is, Is it better to simply use our standard PNC checking account with say, $5-6k in it for immediate expenses and the rest with VG keeping the emergency fund in VG MM? How hard is it to get money out of VG? As we have not done that yet.

Does it still make sense to move to fidelity CMA?

I can't think of any reason to keep PNC other than changing our auto payments and that they do our Medallion Signature for her Simple IRA transfers.

The only big ticket item is our property tax bill we pay in September.

Any advise.

Thanks

Pete
If I were you...

I would make Fidelity brokerage my regular checking account, SPAXX as sweep vehicle (so you in essence earn 2% interest in your checking account with no work on your part). Fidelity website, support and capabilities much stronger than PNC, there is no comparison.

Then set up link between Fidelity and Vanguard, you can move money quickly if needed (push available next day).

Finally, property taxes should go on the CC with a good sign up bonus (or multiple cards if the bill is really high).
Thanks for this response.
Property taxes 17-18k but MD charges a fee of 2.25% of total to use cc for payment.

Thanks again I think we'll pull the trigger on this.

snowman
Posts: 907
Joined: Thu Jan 31, 2013 12:59 pm

Re: Fidelity as a one stop shop

Post by snowman » Wed Jul 17, 2019 9:01 am

captpete wrote:
Wed Jul 17, 2019 7:59 am

Property taxes 17-18k but MD charges a fee of 2.25% of total to use cc for payment.
I would still consider CC. The fees total about $400. If you split the payment among 4 cards with big signup bonus each, you could earn $2K+ for not much work, all tax-free. I would at least give it consideration if I were you. There are many threads here on that subject if you want more info.

matthewbarnhart
Posts: 32
Joined: Sat Feb 25, 2017 4:05 pm

Re: Fidelity as a one stop shop

Post by matthewbarnhart » Wed Jul 17, 2019 11:40 am

captpete wrote:
Sun Jul 14, 2019 8:45 am
So my question is, Is it better to simply use our standard PNC checking account with say, $5-6k in it for immediate expenses and the rest with VG keeping the emergency fund in VG MM? How hard is it to get money out of VG? As we have not done that yet.
I just did the same -- moved my HSA to Fidelity, then opened the CMA once I saw this thread. I've since closed my Ally and Chase checking/savings accounts.

The difference in yield between SPRXX and VMMXX, on a $30,000 balance, is $3.75/month.

If you keep $5,000 in a no- or low-interest PNC checking account, and $25,000 in VMMXX, you'll lose $5.80/month in interest you would've earned having everything in SPRXX @ Fidelity.

It's a no-brainer, for me anyway.

mervinj7
Posts: 1011
Joined: Thu Mar 27, 2014 3:10 pm

Re: Fidelity as a one stop shop

Post by mervinj7 » Wed Jul 17, 2019 11:51 am

matthewbarnhart wrote:
Wed Jul 17, 2019 11:40 am
captpete wrote:
Sun Jul 14, 2019 8:45 am
So my question is, Is it better to simply use our standard PNC checking account with say, $5-6k in it for immediate expenses and the rest with VG keeping the emergency fund in VG MM? How hard is it to get money out of VG? As we have not done that yet.
I just did the same -- moved my HSA to Fidelity, then opened the CMA once I saw this thread. I've since closed my Ally and Chase checking/savings accounts.

The difference in yield between SPRXX and VMMXX, on a $30,000 balance, is $3.75/month.

If you keep $5,000 in a no- or low-interest PNC checking account, and $25,000 in VMMXX, you'll lose $5.80/month in interest you would've earned having everything in SPRXX @ Fidelity.

It's a no-brainer, for me anyway.
The real trick is to temporarily put in $100k to get access to FZDXX and then you can just keep $30k. The yield difference is about 6 basis points right now between FZDXX and VMMXX, or $1.50/month.

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aj76er
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Location: Portland, OR

Re: Fidelity as a one stop shop

Post by aj76er » Mon Jul 22, 2019 10:32 pm

I had my first issue with the Fidelity CMA account.

I’ve been trying to add my debit card to Apple Pay on my phone for over a week. In order to authorize the card, Fidelity forces you to call into customer service and answer a bunch of questions. The first time I tried this they said I was activated but it never went through. Then I got a call two days later from the fraud department trying to ensure it was me. Then I got a letter in the mail saying that I need to call to activate the card for Apple Pay, which I did (again), but it still has not been activated in the wallet app.

I appreciate the extra security around the debit card, but wow.
"Buy-and-hold, long-term, all-market-index strategies, implemented at rock-bottom cost, are the surest of all routes to the accumulation of wealth" - John C. Bogle

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