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Why to choose EFT if you can choose free Wire (transfers out of Fidelity)?

Posted: Thu Jul 23, 2020 7:46 am
by BogleMelon
An EFT push transaction from Fidelity to an online bank (Ally, Marcus...) would take around 2 business days. A wire transaction would be free on both sides as well and would happen on the same day.
Is there a reason to choose EFT over a wire? Could doing frequent wires trigger something on Fidelity system (since it probably costs them more) that would upset them and penalize me in any way?

Re: Why to choose EFT if you can choose free Wire (transfers out of Fidelity)?

Posted: Thu Jul 23, 2020 8:32 am
by tfb
BogleMelon wrote: Thu Jul 23, 2020 7:46 am An EFT push transaction from Fidelity to an online bank (Ally, Marcus...) would take around 2 business days.
If you submit the EFT request early enough in the morning, say before 11:00 or 11:30 Eastern, and if the receiving end is prompt in crediting, the transfer can arrive on the same business day. It did for me to Marcus. At most it takes one business day, not two. If it takes two business days, the delay is caused by the receiving bank, not by Fidelity or the EFT method. Because EFT from Fidelity is plenty fast, I don't use wire unless absolutely necessary.

Re: Why to choose EFT if you can choose free Wire (transfers out of Fidelity)?

Posted: Thu Jul 23, 2020 8:36 am
by Jack FFR1846
Receiving a wire is not free everywhere. At my credit union, they "officially" charge $15. In my experience, they have removed the fee, but if you have this fee with someone like the Evil Empire, I doubt you'd get more than an echo'd laugh if you asked for the fee to be waived.

Re: Why to choose EFT if you can choose free Wire (transfers out of Fidelity)?

Posted: Thu Jul 23, 2020 8:44 am
by BuddyJet
EFT is easier to set up so I use it for routine transfers. Wire for rare, big transfers.

Re: Why to choose EFT if you can choose free Wire (transfers out of Fidelity)?

Posted: Thu Jul 23, 2020 8:46 am
by Hockey10
Yesterday I requested an EFT from Fidelity to my local bank at about 2 PM. The funds were available in my local bank this morning. On the request page in Fidelity, it says funds will be available in 1-3 business days, but my experience is that it is almost always 1 day. I believe that Fidelity has a cutoff time at some point in the afternoon in order for the money to be available the next day.

Re: Why to choose EFT if you can choose free Wire (transfers out of Fidelity)?

Posted: Thu Jul 23, 2020 8:48 am
by Katietsu
I have not wired from Fidelity. However, I have used wire transfers and EFTs from numerous institutions. My mistake in thinking with wire transfers, before using them, is that they happen as you request them. Not true, based on my experience. For instance, I requested a wire transfer from Ally at 10 AM. At 1 PM, I received a phone call that went to voicemail asking me to confirm the transfer. I saw the message at about 2 PM and returned the call. The transfer did make it through that day but just barely, maybe 15 minutes before the end if business. There are human beings and extra precautions involved with wire transfers, presumably, because of the irreversible nature of the transaction? The Ally ETFs, with a previously established bank account, are always there within one day and take less than 10 seconds to request. (I do still occasionally use a wire for specific reasons, for instance, if I need to avoid any withdrawal hold time.)

Re: Why to choose EFT if you can choose free Wire (transfers out of Fidelity)?

Posted: Thu Jul 23, 2020 9:28 am
by runner3081
Don't need the money immediately.

Re: Why to choose EFT if you can choose free Wire (transfers out of Fidelity)?

Posted: Thu Jul 23, 2020 6:18 pm
by wanderer
Done a few wire transfers from Fidelity for larger purchases. Each took some time to get agent on phone, verify identity, communicate transfer instructions, etc. Had to be complete by early/mid afternoon to complete that day (CST). So not hard, but definitely more work than EFTs.
In my experience Fidelity processes EFTs much faster than a few banks we have used.
As I recall, Fidelity does not provide certified checks, which lead us down the wire transfer route. I would use wire transfers again over certified checks in future, when required by seller.

Re: Why to choose EFT if you can choose free Wire (transfers out of Fidelity)?

Posted: Thu Jul 23, 2020 6:46 pm
by BogleMelon
wanderer wrote: Thu Jul 23, 2020 6:18 pm Each took some time to get agent on phone, verify identity, communicate transfer instructions, etc.
You could have done this online with few clicks.

Re: Why to choose EFT if you can choose free Wire (transfers out of Fidelity)?

Posted: Thu Jul 23, 2020 6:52 pm
by megabad
BogleMelon wrote: Thu Jul 23, 2020 6:46 pm
wanderer wrote: Thu Jul 23, 2020 6:18 pm Each took some time to get agent on phone, verify identity, communicate transfer instructions, etc.
You could have done this online with few clicks.
Really? That’s scary. Surely there is some type of verification? The limited verification is my primary reason for not using wires regularly , but they should have at least some process for security of wire.

Re: Why to choose EFT if you can choose free Wire (transfers out of Fidelity)?

Posted: Thu Jul 23, 2020 10:59 pm
by whodidntante
megabad wrote: Thu Jul 23, 2020 6:52 pm
BogleMelon wrote: Thu Jul 23, 2020 6:46 pm
wanderer wrote: Thu Jul 23, 2020 6:18 pm Each took some time to get agent on phone, verify identity, communicate transfer instructions, etc.
You could have done this online with few clicks.
Really? That’s scary. Surely there is some type of verification? The limited verification is my primary reason for not using wires regularly , but they should have at least some process for security of wire.
It's not scary at all to use modern methods of authentication, electronic communication, and good security practices.

Does your account have a good password only used for that site that only you know? Do you use 2FA? Do you have alerts set up for people adding an account or for making transfers out of the account? How is talking to someone better "verification" than all of that?

Re: Why to choose EFT if you can choose free Wire (transfers out of Fidelity)?

Posted: Thu Jul 23, 2020 11:01 pm
by whodidntante
I use ACH when there is a charge for a wire by the receiver, or if I want to pull money. Otherwise, wire.

Re: Why to choose EFT if you can choose free Wire (transfers out of Fidelity)?

Posted: Thu Jul 23, 2020 11:28 pm
by mattymcmatt
megabad wrote: Thu Jul 23, 2020 6:52 pm
BogleMelon wrote: Thu Jul 23, 2020 6:46 pm
wanderer wrote: Thu Jul 23, 2020 6:18 pm Each took some time to get agent on phone, verify identity, communicate transfer instructions, etc.
You could have done this online with few clicks.
Really? That’s scary. Surely there is some type of verification? The limited verification is my primary reason for not using wires regularly , but they should have at least some process for security of wire.
The first time I did a wire with Fidelity I needed to call. I couldn't do it online but I think they asked and enabled online wires for me.

If I need to wire to a new account, I'll add it and then need to enter a verification code sent to my phone number. So I think their security processes are pretty good.

Re: Why to choose EFT if you can choose free Wire (transfers out of Fidelity)?

Posted: Fri Jul 24, 2020 7:00 am
by wanderer
BogleMelon wrote: Thu Jul 23, 2020 6:46 pm
wanderer wrote: Thu Jul 23, 2020 6:18 pm Each took some time to get agent on phone, verify identity, communicate transfer instructions, etc.
You could have done this online with few clicks.
Not at the sellers office as we were addressing last minute issues two times. Also think Real estate closing.

Re: Why to choose EFT if you can choose free Wire (transfers out of Fidelity)?

Posted: Fri Jul 24, 2020 6:10 pm
by megabad
whodidntante wrote: Thu Jul 23, 2020 10:59 pm
It's not scary at all to use modern methods of authentication, electronic communication, and good security practices.

Does your account have a good password only used for that site that only you know? Do you use 2FA? Do you have alerts set up for people adding an account or for making transfers out of the account? How is talking to someone better "verification" than all of that?
I didn’t say that talking with someone was required, but it certainly would be one of the fastest ways to implement a decent security check. A voice check, acuity check, and security question could all be verified in seconds. The methods you laid out are not overly reassuring as they have all been severely compromised in the recent past though those compromises are certainly not specific to wires. The primary comfort I have in the ACH system (not a lot) is the account verification process (Slowing down account setup) and the possibility of reversal for fraudulent activity. As far as i know, these are not a part of wires so I would expect there to be some checks beyond “a few clicks” as stated by the poster above. At my institutions, there certainly are.

Re: Why to choose EFT if you can choose free Wire (transfers out of Fidelity)?

Posted: Sat Jul 25, 2020 7:56 am
by OAG
tfb wrote: Thu Jul 23, 2020 8:32 am
BogleMelon wrote: Thu Jul 23, 2020 7:46 am An EFT push transaction from Fidelity to an online bank (Ally, Marcus...) would take around 2 business days.
If you submit the EFT request early enough in the morning, say before 11:00 or 11:30 Eastern, and if the receiving end is prompt in crediting, the transfer can arrive on the same business day. It did for me to Marcus. At most it takes one business day, not two. If it takes two business days, the delay is caused by the receiving bank, not by Fidelity or the EFT method. Because EFT from Fidelity is plenty fast, I don't use wire unless absolutely necessary.
NFCU recently did a ACH transfer in same day. I think there has been some improvement in ACH speed, but understand not all banks and credit unions us it yet. Agree any delays are USUALLY on the receiving end.

Re: Why to choose EFT if you can choose free Wire (transfers out of Fidelity)?

Posted: Sat Jul 25, 2020 8:09 am
by indexfundfan
tfb wrote: Thu Jul 23, 2020 8:32 am
BogleMelon wrote: Thu Jul 23, 2020 7:46 am An EFT push transaction from Fidelity to an online bank (Ally, Marcus...) would take around 2 business days.
If you submit the EFT request early enough in the morning, say before 11:00 or 11:30 Eastern, and if the receiving end is prompt in crediting, the transfer can arrive on the same business day. It did for me to Marcus. At most it takes one business day, not two. If it takes two business days, the delay is caused by the receiving bank, not by Fidelity or the EFT method. Because EFT from Fidelity is plenty fast, I don't use wire unless absolutely necessary.
Fidelity has two same-day ACH cutoff times. The following are the result of the experiments I did. If you submit before

8am ET : usually posts at third party bank by 2pm ET same day
12pm ET : usually posts at third party bank by 5pm ET same day

Same-day ACH are limited to $100k.

If you submit the request after 12pm but before 4pm, the money will post at third party bank early next (business day) morning.

Re: Why to choose EFT if you can choose free Wire (transfers out of Fidelity)?

Posted: Sat Jul 25, 2020 8:35 am
by MikeG62
BogleMelon wrote: Thu Jul 23, 2020 7:46 am An EFT push transaction from Fidelity to an online bank (Ally, Marcus...) would take around 2 business days. A wire transaction would be free on both sides as well and would happen on the same day.
Is there a reason to choose EFT over a wire? Could doing frequent wires trigger something on Fidelity system (since it probably costs them more) that would upset them and penalize me in any way?
It's a good question and one I have often wondered myself.

According to Fidelity's FAQ's, there is this distinction between the two, "Wire transfers have a daily transfer limit of $100,000. Electronic funds transfers have a limit of $100,000 per transfer, and a $250,000 per day. If you need to transfer larger amounts, please contact a Fidelity representative at 800-343-3548 for assistance."

I have found that I can ACH funds the same day whenever I initiate the transfer early in the day (usually by 10am or so). Of course it does not show up at the receiving institution until mid to late afternoon. I've done a number of wires from Fidelity and I've seen them process in as fast as a few minutes.

Interesting experience sending a wire from Ally yesterday. Long story short,I initiated the wire (online) around 7:15am, but it did not process until 4pm (this despite several attempts on my part to get Ally to get on this). Fidelity's wire processing is light years faster than Ally.

Re: Why to choose EFT if you can choose free Wire (transfers out of Fidelity)?

Posted: Sat Jul 25, 2020 10:57 am
by tfb
indexfundfan wrote: Sat Jul 25, 2020 8:09 am Fidelity has two same-day ACH cutoff times. The following are the result of the experiments I did. If you submit before

8am ET : usually posts at third party bank by 2pm ET same day
12pm ET : usually posts at third party bank by 5pm ET same day

Same-day ACH are limited to $100k.

If you submit the request after 12pm but before 4pm, the money will post at third party bank early next (business day) morning.
Thank you for these cutoff times!

Re: Why to choose EFT if you can choose free Wire (transfers out of Fidelity)?

Posted: Sat Jul 25, 2020 12:32 pm
by RetiredAL
My experience with our monthly scheduled transfers by Fidelity has been that it transfers and during the night it is received by Wells Fargo. The next morning in WF it shows as a pending deposit but is included in the available balance. WF does have rules about using pending deposits with some YY% restriction if the pending amount is larger $XX. BTW, WF uses the same process with a deposited check at the ATM/Teller.

IMO, ACH is a inherently safer because you always have pre-aranged the transfer points and Fidelity has validated that the names match on both accounts before allowing transfers. A Wire can be more spontaneous and if you fat-finger the account number, you are relying on the receiving bank to reject it as a name mismatch. Transfers via Zelle and Venmo, which I do not believe Fidelity will do, are even less safe in respect to fat-finger errors. With any transfer method, the prudent thing to do when you create a new transfer point, is to send small test transfer so you can validate that everything is correct.