Interesting issue with USAA and Fidelity Money Market account

Have a question about your personal investments? No matter how simple or complex, you can ask it here.
Post Reply
User avatar
corn18
Posts: 682
Joined: Fri May 22, 2015 6:24 am

Interesting issue with USAA and Fidelity Money Market account

Post by corn18 » Thu Jun 14, 2018 9:20 am

I decided to move my EF from my USAA savings account yielding nothing to a money market fund in my brokerage account. I put it all in FIDELITY MMKT PREMIUM CLASS (FZDXX) and was happy that I would be getting the 1.86% 7 day SEC yield vs. 0.2%. I went online today to move some money out of it and I cannot trade it via online account. Called USAA and they were baffled that I was able to buy it in the first place. They only allow their own MM accounts and were surprised Fidelity sold it to me in my USAA brokerage account. Weird. So I had to sell it and move it to a USAA MM account @ 1.46%. Oh well.

I can buy and sell FIDO mutual funds for free but not MM accounts? This is weird.

To make this actionable, has any other USAA members successfully used MM accounts other than USAA ones in their USAA brokerage account?

Corn

delamer
Posts: 4768
Joined: Tue Feb 08, 2011 6:13 pm

Re: Interesting issue with USAA and Fidelity Money Market account

Post by delamer » Thu Jun 14, 2018 9:25 am

Are you sure that USAA didn’t think that you wanted to use the Fidelity fund as your settlement fund for the brokerage account?

User avatar
corn18
Posts: 682
Joined: Fri May 22, 2015 6:24 am

Re: Interesting issue with USAA and Fidelity Money Market account

Post by corn18 » Thu Jun 14, 2018 9:29 am

delamer wrote:
Thu Jun 14, 2018 9:25 am
Are you sure that USAA didn’t think that you wanted to use the Fidelity fund as your settlement fund for the brokerage account?
Just got off the phone with a senior trader (whatever that means) and I can only use USAA MM as a sweep account. And I cannot buy other company's MM accounts in my USAA brokerage account.

delamer
Posts: 4768
Joined: Tue Feb 08, 2011 6:13 pm

Re: Interesting issue with USAA and Fidelity Money Market account

Post by delamer » Thu Jun 14, 2018 9:37 am

corn18 wrote:
Thu Jun 14, 2018 9:29 am
delamer wrote:
Thu Jun 14, 2018 9:25 am
Are you sure that USAA didn’t think that you wanted to use the Fidelity fund as your settlement fund for the brokerage account?
Just got off the phone with a senior trader (whatever that means) and I can only use USAA MM as a sweep account. And I cannot buy other company's MM accounts in my USAA brokerage account.
Tne first part makes sense.

The second part — as you said — is weird. And why would USAA blame Fidelity for selling it to you? If they don’t want you to hold other company’s MM funds, then that should be a screen that they do.

Post Reply