Do funds on hold at Fidelity or other institutions accrue interest

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Aena1
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Do funds on hold at Fidelity or other institutions accrue interest

Post by Aena1 »

With the extended hold times that we are seeing at various institutions ( including fidelity ) after funds are electronically transferred, my question is if the funds on hold are still getting interest during the two to three week period that they are on hold?

Does it matter which account the cash is in - like a government money market or some default cash account?
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sycamore
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Re: Do funds on hold at Fidelity or other institutions accrue interest

Post by sycamore »

Aena1 wrote: Fri Jan 31, 2025 11:34 am With the extended hold times that we are seeing at various institutions ( including fidelity ) after funds are electronically transferred, my question is if the funds on hold are still getting interest during the two to three week period that they are on hold?

Does it matter which account the cash is in - like a government money market or some default cash account?
I would think they're earning something.

I suppose it might depends on how you transferred money in - direct to a fund versus to a settlement account, and what your default settlement fund is.

Please login to your Fidelity account. Look at the "Positions" tab. I expect you will see a position that reflects the transferred funds. There's a row for "Cash HELD IN MONEY MARKET", which is a likely place for incoming funds.

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If that doesn't help, click on the "Activity & Orders" tab. Examine the table for the amount you transferred in. Does the row show a fund name? That would be the fund you're earning dividends on.
rbd789
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Re: Do funds on hold at Fidelity or other institutions accrue interest

Post by rbd789 »

sycamore wrote: Fri Jan 31, 2025 1:25 pm
Aena1 wrote: Fri Jan 31, 2025 11:34 am With the extended hold times that we are seeing at various institutions ( including fidelity ) after funds are electronically transferred, my question is if the funds on hold are still getting interest during the two to three week period that they are on hold?

Does it matter which account the cash is in - like a government money market or some default cash account?
I would think they're earning something.

I suppose it might depends on how you transferred money in - direct to a fund versus to a settlement account, and what your default settlement fund is.

Please login to your Fidelity account. Look at the "Positions" tab. I expect you will see a position that reflects the transferred funds. There's a row for "Cash HELD IN MONEY MARKET", which is a likely place for incoming funds.

Image


If that doesn't help, click on the "Activity & Orders" tab. Examine the table for the amount you transferred in. Does the row show a fund name? That would be the fund you're earning dividends on.
I have not been subjected to any lengthy holds, myself, at Fidelity. However my understanding has been that people who are still have the ability to immediately invest the funds, just not to withdraw them. So it seems the thing to do is deposit (pull) the funds and immediately invest them, at least into a money market fund of your choosing. This is what I've always done, but as I said, I have not experienced any holds longer than the "normal" two business days.
aruba joe
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Re: Do funds on hold at Fidelity or other institutions accrue interest

Post by aruba joe »

I have transferred funds from my checking account to FIDO and was subject to a10 business day hold ( about 2 weeks). I was abled to invest the funds into my MM ,and yes it pays interest from the date of transfer.
rkhusky
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Re: Do funds on hold at Fidelity or other institutions accrue interest

Post by rkhusky »

Can you not transfer directly from your bank into any Fidelity fund? I would presume the hold is only for transferring out of the account, not moving money around within the account.
aruba joe
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Re: Do funds on hold at Fidelity or other institutions accrue interest

Post by aruba joe »

You can only transfer to your cash MM account. After that you can use the cash to buy a fund without waiting the 10 business days. You can move money around in your FIDO account with no delay.
Barky
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Re: Do funds on hold at Fidelity or other institutions accrue interest

Post by Barky »

Certainly. Funds, once received, are in your name and are accruing interest even if you can't immediately withdraw them. I have (knock on wood) had no problem with funds that are "pushed" from other banks. These, for me, clear in a couple of days.
50-year-old California bankruptcy attorney
rkhusky
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Re: Do funds on hold at Fidelity or other institutions accrue interest

Post by rkhusky »

aruba joe wrote: Sat Feb 01, 2025 2:10 pm You can only transfer to your cash MM account. After that you can use the cash to buy a fund without waiting the 10 business days. You can move money around in your FIDO account with no delay.
Is that only if you push money to Fidelity? You can’t pull money into Fidelity to any of their funds, for example by choosing a Buy option and choosing your bank as the source of the money?
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HueyLD
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Re: Do funds on hold at Fidelity or other institutions accrue interest

Post by HueyLD »

rkhusky wrote: Tue Feb 04, 2025 7:27 am
aruba joe wrote: Sat Feb 01, 2025 2:10 pm You can only transfer to your cash MM account. After that you can use the cash to buy a fund without waiting the 10 business days. You can move money around in your FIDO account with no delay.
Is that only if you push money to Fidelity? You can’t pull money into Fidelity to any of their funds, for example by choosing a Buy option and choosing your bank as the source of the money?
No. You have to go thru the settlement fund.
rkhusky
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Re: Do funds on hold at Fidelity or other institutions accrue interest

Post by rkhusky »

HueyLD wrote: Tue Feb 04, 2025 7:51 am
rkhusky wrote: Tue Feb 04, 2025 7:27 am
Is that only if you push money to Fidelity? You can’t pull money into Fidelity to any of their funds, for example by choosing a Buy option and choosing your bank as the source of the money?
No. You have to go thru the settlement fund.
Really? At Vanguard I can transfer directly to/from any of their funds from/to my bank. I can also transfer directly between any two of their funds with the sell and buy transactions occurring overnight. In both cases, the money touches the settlement fund, but it’s mostly hidden from the user and causes no delay.
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