Fidelity Money Market Funds for everyday expenses

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ninjab
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Re: Fidelity Money Market Funds for everyday expenses

Post by ninjab » Fri Nov 30, 2018 7:20 pm

Also questions about best place for emergency fund. In highest or second highest federal tax bracket and in Indiana. Confused over best option, funds are at Fidelity: mm (currently spaxx), treasury fund or actual bills, municipal bonds (don't think there are any for Indiana, tax exempt funds, I bonds, CD ladder, etc. So many options and calculating the after tax return is somewhat complicated. I plan on keeping ~20k in Fidelity money market for everyday expense account and other expenses/vacations/purchases. I probably have 5k/month expenses. Another 30-40k in some other semi liquid vehicle

Cash
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Re: Fidelity Money Market Funds for everyday expenses

Post by Cash » Sat Dec 01, 2018 9:01 am

I use FTEXX (Fidelity Municipal Money Market Fund), which currently has a tax-equivalent yield of 2.24% for me. But I live in a state without income taxes.
Last edited by Cash on Sat Dec 01, 2018 1:34 pm, edited 1 time in total.

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ruralavalon
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Re: Fidelity Money Market Funds for everyday expenses

Post by ruralavalon » Sat Dec 01, 2018 9:09 am

quaternion wrote:
Sun Jan 14, 2018 10:03 pm
SPRXX looks like Fidelity's highest-yield, taxable, retail MM fund. Not quite as good as Vanguard's prime money market, though.
Fidelity Money Market Fund (SPRXX), current SEC Yield = 2.09%.

Vanguard Prime Money Market Fund (VMMXX) current SEC Yield = 2.30%..
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link:Getting Started

marcopolo
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Re: Fidelity Money Market Funds for everyday expenses

Post by marcopolo » Sat Dec 01, 2018 10:22 am

ruralavalon wrote:
Sat Dec 01, 2018 9:09 am
quaternion wrote:
Sun Jan 14, 2018 10:03 pm
SPRXX looks like Fidelity's highest-yield, taxable, retail MM fund. Not quite as good as Vanguard's prime money market, though.
Fidelity Money Market Fund (SPRXX), current SEC Yield = 2.09%.

Vanguard Prime Money Market Fund (VMMXX) current SEC Yield = 2.30%..
How would one use VMMXX for everyday expenses?
I don't think Vanguard has Cash Management type account, and trading costs in and out of VMMXX at other brokerages would kill any yield advantages.
Once in a while you get shown the light, in the strangest of places if you look at it right.

InertiaMan
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Re: Fidelity Money Market Funds for everyday expenses

Post by InertiaMan » Sat Dec 01, 2018 1:24 pm

ruralavalon wrote:
Sat Dec 01, 2018 9:09 am
quaternion wrote:
Sun Jan 14, 2018 10:03 pm
SPRXX looks like Fidelity's highest-yield, taxable, retail MM fund. Not quite as good as Vanguard's prime money market, though.
Fidelity Money Market Fund (SPRXX), current SEC Yield = 2.09%.

Vanguard Prime Money Market Fund (VMMXX) current SEC Yield = 2.30%..
FZDXX is at 2.21%. It does have the hurdle of $100k to open. But only $10k to maintain. I briefly passed $100k thru while moving some $$ to another account, and subsequently kept a sub-$100k balance. Doesn't fully close the gap to Vanguard 2.30% but its close.

vtMaps
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Re: Fidelity Money Market Funds for everyday expenses

Post by vtMaps » Sat Dec 01, 2018 2:00 pm

InertiaMan wrote:
Sat Dec 01, 2018 1:24 pm
FZDXX is at 2.21%. It does have the hurdle of $100k to open. But only $10k to maintain.
In an IRA, the minimum to open is $10k. We keep FZDXX in a roth IRA as part of our savings account and emergency fund.

--vtMaps
The optimist proclaims that we live in the best of all possible worlds; and the pessimist fears this is true. --James Branch Cabell

ninjab
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Re: Fidelity Money Market Funds for everyday expenses

Post by ninjab » Sun Dec 02, 2018 3:33 pm

It looks like after tax if I am calculating it right, (37% federal and 4.5% state + county) FTEXX (municipal etf) and FZDXX will have very close yields 2.2-2.1%. Is one significantly safer or similar enough safety?

Currently using spaxx, I assume both of these funds would also auto sell for covering expenses.

PatrickA5
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Re: Fidelity Money Market Funds for everyday expenses

Post by PatrickA5 » Sun Dec 02, 2018 4:12 pm

marcopolo wrote:
Sat Dec 01, 2018 10:22 am
ruralavalon wrote:
Sat Dec 01, 2018 9:09 am
quaternion wrote:
Sun Jan 14, 2018 10:03 pm
SPRXX looks like Fidelity's highest-yield, taxable, retail MM fund. Not quite as good as Vanguard's prime money market, though.
Fidelity Money Market Fund (SPRXX), current SEC Yield = 2.09%.

Vanguard Prime Money Market Fund (VMMXX) current SEC Yield = 2.30%..
How would one use VMMXX for everyday expenses?
I don't think Vanguard has Cash Management type account, and trading costs in and out of VMMXX at other brokerages would kill any yield advantages.
Vanguard has a checking account called the Vanguard Advantage Account. The sweep account is VMFXX (VG Federal Money Market) and is currently yielding 2.19%. You can move money into/from the Prime Money Market if you want, but I don't think VG will automatically liquidate the Prime Money Market to fund the checking account. There's not much yield difference between the 2 accounts, so I leave a good chunk in the Federal Money Market.

goaties
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Re: Fidelity Money Market Funds for everyday expenses

Post by goaties » Sun Dec 02, 2018 5:37 pm

While it is very convenient to have this automatic overdraft ploy available, don't you worry that it makes it so much easier for someone to drain your account? Or is this a far-fetched scenario?

I've been keeping checking at a separate institution (with no overdraft protection) for years and telling myself that I'm safer this way. Perhaps I've just been making problems for myself...

ThriftyPhD
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Re: Fidelity Money Market Funds for everyday expenses

Post by ThriftyPhD » Sun Dec 02, 2018 6:01 pm

PatrickA5 wrote:
Sun Dec 02, 2018 4:12 pm
marcopolo wrote:
Sat Dec 01, 2018 10:22 am
ruralavalon wrote:
Sat Dec 01, 2018 9:09 am
quaternion wrote:
Sun Jan 14, 2018 10:03 pm
SPRXX looks like Fidelity's highest-yield, taxable, retail MM fund. Not quite as good as Vanguard's prime money market, though.
Fidelity Money Market Fund (SPRXX), current SEC Yield = 2.09%.

Vanguard Prime Money Market Fund (VMMXX) current SEC Yield = 2.30%..
How would one use VMMXX for everyday expenses?
I don't think Vanguard has Cash Management type account, and trading costs in and out of VMMXX at other brokerages would kill any yield advantages.
Vanguard has a checking account called the Vanguard Advantage Account.
Vanguard wrote: This service is offered to clients of Voyager Select Services® and Flagship Services®
So, it's an option, but only if you have > $500k at Vanguard.

arf30
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Re: Fidelity Money Market Funds for everyday expenses

Post by arf30 » Sun Dec 02, 2018 6:04 pm

goaties wrote:
Sun Dec 02, 2018 5:37 pm
While it is very convenient to have this automatic overdraft ploy available, don't you worry that it makes it so much easier for someone to drain your account? Or is this a far-fetched scenario?
The overdraft has two modes - the one described in this thread will move money on demand. There's another mode that will only move a fixed amount once per day when your account drops below a threshold that you specify, it would limit your losses in case of fraud.

Personally I hold a month or two of money market and cash directly in the CMA without any overdraft, and keep a large emergency fund elsewhere.

Cash
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Re: Fidelity Money Market Funds for everyday expenses

Post by Cash » Sun Dec 02, 2018 8:02 pm

goaties wrote:
Sun Dec 02, 2018 5:37 pm
While it is very convenient to have this automatic overdraft ploy available, don't you worry that it makes it so much easier for someone to drain your account? Or is this a far-fetched scenario?

I've been keeping checking at a separate institution (with no overdraft protection) for years and telling myself that I'm safer this way. Perhaps I've just been making problems for myself...
Not far-fetched at all. It happened to me a while ago at a different financial institution. I keep a certain amount in the CMA and put the rest in a separate brokerage account at Fidelity, with no overdraft from the brokerage account. You can also open a second CMA for the same purpose.

justsomeguy2018
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Re: Fidelity Money Market Funds for everyday expenses

Post by justsomeguy2018 » Mon Dec 03, 2018 8:43 pm

InertiaMan wrote:
Sat Dec 01, 2018 1:24 pm
ruralavalon wrote:
Sat Dec 01, 2018 9:09 am
quaternion wrote:
Sun Jan 14, 2018 10:03 pm
SPRXX looks like Fidelity's highest-yield, taxable, retail MM fund. Not quite as good as Vanguard's prime money market, though.
Fidelity Money Market Fund (SPRXX), current SEC Yield = 2.09%.

Vanguard Prime Money Market Fund (VMMXX) current SEC Yield = 2.30%..
FZDXX is at 2.21%. It does have the hurdle of $100k to open. But only $10k to maintain. I briefly passed $100k thru while moving some $$ to another account, and subsequently kept a sub-$100k balance. Doesn't fully close the gap to Vanguard 2.30% but its close.
Question - when they list the ER for these Fidelity MM funds, do you have to subtract that ER from the yield? Or is the yield they cite, after factoring in the ER?

ninjab
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Re: Fidelity Money Market Funds for everyday expenses

Post by ninjab » Mon Dec 03, 2018 10:20 pm

Yield posted is after expenses, you can ignore the ER completely (it does not matter) and just look at the yields.

Arby
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Re: Fidelity Money Market Funds for everyday expenses

Post by Arby » Tue Dec 04, 2018 5:33 am

vtMaps wrote:
Sat Dec 01, 2018 2:00 pm
InertiaMan wrote:
Sat Dec 01, 2018 1:24 pm
FZDXX is at 2.21%. It does have the hurdle of $100k to open. But only $10k to maintain.
In an IRA, the minimum to open is $10k. We keep FZDXX in a roth IRA as part of our savings account and emergency fund.

--vtMaps
In one area of the Fidelity website, it lists 10K as the Required Balance.

But looking through the prospectus, I don't see anything regarding what happens if you don't meet the Required Balance although there is a mention of a small balance fee but that is defined as balance less than 2k.

Can anyone shed some light on the the Required Balance of FZDXX?

vtMaps
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Re: Fidelity Money Market Funds for everyday expenses

Post by vtMaps » Tue Dec 04, 2018 6:00 am

Arby wrote:
Tue Dec 04, 2018 5:33 am
In one area of the Fidelity website, it lists 10K as the Required Balance.

But looking through the prospectus, I don't see anything regarding what happens if you don't meet the Required Balance although there is a mention of a small balance fee but that is defined as balance less than 2k.

Can anyone shed some light on the the Required Balance of FZDXX?
I don't understand all the fine print. from the prospectus in a section called "Minimum Waivers" is this:
There is no minimum balance or purchase minimum for investments through Portfolio Advisory Services, a mutual fund or a qualified tuition program for which Fidelity serves as investment manager, certain Fidelity® retirement accounts funded through salary deduction, or fund positions opened with the proceeds of distributions from such retirement accounts or from a Fidelity® systematic withdrawal service. In addition, each fund may waive or lower purchase minimums in other circumstances.
--vtMaps
The optimist proclaims that we live in the best of all possible worlds; and the pessimist fears this is true. --James Branch Cabell

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Kevin M
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Re: Fidelity Money Market Funds for everyday expenses

Post by Kevin M » Tue Dec 04, 2018 12:30 pm

Arby wrote:
Tue Dec 04, 2018 5:33 am
In one area of the Fidelity website, it lists 10K as the Required Balance.

But looking through the prospectus, I don't see anything regarding what happens if you don't meet the Required Balance although there is a mention of a small balance fee but that is defined as balance less than 2k.

Can anyone shed some light on the the Required Balance of FZDXX?
One thing I was told when I called and asked about the fund minimum and low-balance fee is that since I'm "Private Client" status, none of these apply to me. My FZDXX balance has been in the hundreds if not tens of dollars at times, and now is less than $1,000 I think. It's not a high enough rate that I want to keep much cash in it for long.

I was assigned private client status after transferring my Fidelity 401k into a Fidelity IRA at retirement, as I recall. I subsequently transferred most of it out of that IRA, and think I dropped below the amount to qualify for private client status level, even though I had transferred some into a taxable account. But apparently I retained that status.

At any rate, I recommend just calling Fidelity and asking about how these things apply to you, if at all.

Kevin
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Arby
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Re: Fidelity Money Market Funds for everyday expenses

Post by Arby » Thu Dec 06, 2018 5:40 am

Kevin M wrote:
Tue Dec 04, 2018 12:30 pm
Arby wrote:
Tue Dec 04, 2018 5:33 am
In one area of the Fidelity website, it lists 10K as the Required Balance.

But looking through the prospectus, I don't see anything regarding what happens if you don't meet the Required Balance although there is a mention of a small balance fee but that is defined as balance less than 2k.

Can anyone shed some light on the the Required Balance of FZDXX?
One thing I was told when I called and asked about the fund minimum and low-balance fee is that since I'm "Private Client" status, none of these apply to me. My FZDXX balance has been in the hundreds if not tens of dollars at times, and now is less than $1,000 I think. It's not a high enough rate that I want to keep much cash in it for long.

I was assigned private client status after transferring my Fidelity 401k into a Fidelity IRA at retirement, as I recall. I subsequently transferred most of it out of that IRA, and think I dropped below the amount to qualify for private client status level, even though I had transferred some into a taxable account. But apparently I retained that status.

At any rate, I recommend just calling Fidelity and asking about how these things apply to you, if at all.

Kevin
I just called about the minimum balance and the Rep said there is technically a 10K minimum balance but he doesn't think it is being enforced. He actually said at one point that there was no minimum balance. He said the worst that could happen is that I could be sold out of it.

In the prospectus it mentions a fee if the balance is below 2K.

Outside of an IRA the minimum purchase is 100K so think I might set up an autoroll ladder of 4 week tbills maturing every week plus some other cash even more liquid for situations where I need the funds immediately.

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Kevin M
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Re: Fidelity Money Market Funds for everyday expenses

Post by Kevin M » Thu Dec 06, 2018 4:52 pm

Arby wrote:
Thu Dec 06, 2018 5:40 am
In the prospectus it mentions a fee if the balance is below 2K.
Yes, I was told that that also does not apply to me. My balance typically has been below that, and no fees charged. This is in an IRA.

Kevin
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RIMDBogle
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Re: Fidelity Money Market Funds for everyday expenses

Post by RIMDBogle » Sun Dec 09, 2018 9:53 pm

It is an interesting thread.

Are there any threads/wiki page that compare Money Market Funds of various brokerages?

Is there a way to get to Vanguard Prime Money Market Fund (VMMXX) outside vanguard account?

I mean , if a person does not have a vanguard account.

Thanks for sharing.

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Re: Fidelity Money Market Funds for everyday expenses

Post by MisterBill » Sat Dec 15, 2018 9:57 pm

RIMDBogle wrote:
Sun Dec 09, 2018 9:53 pm
Is there a way to get to Vanguard Prime Money Market Fund (VMMXX) outside vanguard account?
I just tried to place an order on Fidelity and was told "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."

ninjab
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Re: Fidelity Money Market Funds for everyday expenses

Post by ninjab » Sat Dec 15, 2018 10:53 pm

I've decided to put my extra cash in FZEXX, 1.4% tax exempt, think it ends up being tax equivalent to 2.4% in the 37% federal tax bracket

CDub
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Re: Fidelity Money Market Funds for everyday expenses

Post by CDub » Sun Dec 16, 2018 6:54 am

Cash wrote:
Sun Dec 02, 2018 8:02 pm
goaties wrote:
Sun Dec 02, 2018 5:37 pm
While it is very convenient to have this automatic overdraft ploy available, don't you worry that it makes it so much easier for someone to drain your account? Or is this a far-fetched scenario?

I've been keeping checking at a separate institution (with no overdraft protection) for years and telling myself that I'm safer this way. Perhaps I've just been making problems for myself...
Not far-fetched at all. It happened to me a while ago at a different financial institution. I keep a certain amount in the CMA and put the rest in a separate brokerage account at Fidelity, with no overdraft from the brokerage account. You can also open a second CMA for the same purpose.

Yes there is the risk of someone draining the account; but wouldn’t that be covered by fidelity? Isn’t there fraud protection on the account?

Cash
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Re: Fidelity Money Market Funds for everyday expenses

Post by Cash » Sun Dec 16, 2018 8:13 am

CDub wrote:
Sun Dec 16, 2018 6:54 am
Cash wrote:
Sun Dec 02, 2018 8:02 pm
goaties wrote:
Sun Dec 02, 2018 5:37 pm
While it is very convenient to have this automatic overdraft ploy available, don't you worry that it makes it so much easier for someone to drain your account? Or is this a far-fetched scenario?

I've been keeping checking at a separate institution (with no overdraft protection) for years and telling myself that I'm safer this way. Perhaps I've just been making problems for myself...
Not far-fetched at all. It happened to me a while ago at a different financial institution. I keep a certain amount in the CMA and put the rest in a separate brokerage account at Fidelity, with no overdraft from the brokerage account. You can also open a second CMA for the same purpose.

Yes there is the risk of someone draining the account; but wouldn’t that be covered by fidelity? Isn’t there fraud protection on the account?
Sure, but I’d rather minimize the potential damage at the outset rather than wait until they finish investigating before restoring the funds.

js12337
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Re: Fidelity Money Market Funds for everyday expenses

Post by js12337 » Sun Dec 16, 2018 1:33 pm

I too have been looking to consolidate at Fidelity. My question is, do you even need the CMA account? It seems most banking functions are available on the Investment account. ATM, Visa, Checkwriting. Is there something I am missing?

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Re: Fidelity Money Market Funds for everyday expenses

Post by indexfundfan » Sun Dec 16, 2018 1:52 pm

js12337 wrote:
Sun Dec 16, 2018 1:33 pm
I too have been looking to consolidate at Fidelity. My question is, do you even need the CMA account? It seems most banking functions are available on the Investment account. ATM, Visa, Checkwriting. Is there something I am missing?
ATM fees are not reimbursed in the investment account (unless you meet some asset threshold).
My signature has been deleted.

js12337
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Re: Fidelity Money Market Funds for everyday expenses

Post by js12337 » Sun Dec 16, 2018 2:47 pm

That was my feeling as well. It seemed to me the ATM fees were the only difference between the Investment account and CMA. As I was inquiring on this with Fidelity, I was told that I would be reimbursed for all ATM fees in the Investment account. The CMA account seemed unnecessary to me but wanted to make sure I wasn't missing something. I don't know if that was because it was an incentive, asset threshold, or some other element but I am not complaining. I am treading in slowly to see how things work with a few Tbill trades and some misc Billpay, EFTs, Wire transactions before I move the whole kitchen sink.

I have been happy with Vanguard mutual funds for the last 25 years, but for reasons unique to me and my employer, I am unable to use the Vanguard Brokerage account.

ninjab
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Re: Fidelity Money Market Funds for everyday expenses

Post by ninjab » Sun Dec 16, 2018 3:46 pm

I like having the CMA account separate from the brokerage, I use it for working cash and emergency fund. You don't need it brokerage account can do everything.
I also do not have ithe CMA linked to draw from my brokerage, so if there is ATM or other fraud with the CMA account my brokerage assets are safe. Since my 3-6month emergency fund is in the CMA account I don't have to worry about overdraft. Another difference, my CMA does not have margin like my brokerage account which is also good for limiting fraud.

kxl19
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Re: Fidelity Money Market Funds for everyday expenses

Post by kxl19 » Sun Dec 16, 2018 4:13 pm

I've also recently consolidated our banking with investments at Fidelity (except for our 401ks, which are run by Vanguard).

It's been a very pleasant process. I can get higher yield at FIdo using tax-exempt MM funds, as we're in the top tax bracket, which gives us a higher tax-equivalent yield than our previous CU. Thanks to this board for teaching me to think about tax-equivalent yields.

If your salary is getting deposited into a CMA, and the amount is constant per month, you could setup an automatic monthly investment to automatically buy SPAXX/SPRXX or the MM fund of your choice.

MisterBill
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Re: Fidelity Money Market Funds for everyday expenses

Post by MisterBill » Sun Dec 16, 2018 8:16 pm

kxl19 wrote:
Sun Dec 16, 2018 4:13 pm
If your salary is getting deposited into a CMA, and the amount is constant per month, you could setup an automatic monthly investment to automatically buy SPAXX/SPRXX or the MM fund of your choice.
So I've also started using Fidelity as one of my main checking accounts (I'm also using Heritage since it pays 3.33% on up to $25k, with some hoops to jump thru). I managed to consolidate $100k in cash in my brokerage account and was able to purchase FZDXX. One strange thing I have noticed is that when Fidelity moves funds from the brokerage account for money withdrawn from the CMA, it doesn't first cash out the money market fund (SPRXX) I have in the CMA. So I just sold the small amount of SPRXX I was holding in the CMA since it makes no sense to hold it when I have the FZDXX earning more in the brokerage account.

I did find it very handy to be able to initiate a free domestic wire transfer the other day. The bank I'm moving from does free wire transfers but I needed to fill out and fax a form. This was obviously much simpler and it was completed in an hour.

RIMDBogle
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Re: Fidelity Money Market Funds for everyday expenses

Post by RIMDBogle » Sun Dec 16, 2018 9:27 pm

InertiaMan wrote:
Thu Nov 29, 2018 4:32 pm
I keep my CMA at $0 and use my ATM all the time. Never had a problem. But I always have sufficient $$ in a liquid MM account (SPAXX or FZDXX) in the tied brokerage account. If its not working for you, either there is some problem in the account setup, or you lack liquid cash equivalent in the brokerage??
[/quote

I did see min balance requirement 100K for FZDXX. Are there any way to waive this requirement?

What is the Vanguard BSA, VCIT ETF equivalent in Fidelity?

What are the funds fidelity allow for CMA for settlement/parking cash?

Thanks for sharing.

MisterBill
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Re: Fidelity Money Market Funds for everyday expenses

Post by MisterBill » Mon Dec 17, 2018 1:39 am

RIMDBogle wrote:
Sun Dec 16, 2018 9:27 pm
I did see min balance requirement 100K for FZDXX. Are there any way to waive this requirement?

What is the Vanguard BSA, VCIT ETF equivalent in Fidelity?

What are the funds fidelity allow for CMA for settlement/parking cash?

Thanks for sharing.
You need $100k to open FZDXX but can reduce it immediately after opening it.

Funny thing happened when I opened mine. I transferred a bunch of money in from different accounts on Thursday and it all showed as available to trade on Friday, so I bought FZDXX with it. Then around 3:50pm I did a live chat to see if I was OK doing it and the rep told me that because money market purchases settle the same day and the transfers were still in progress, I should not put in the order until Monday. Well, by that point it was after 4pm and it was too late to cancel the order, so he told me that he made a note on my account so I would not be penalized for trading without enough funds in my account. My purchase went thru, but one of the transfers did not end up posting that day, so they showed me buying the full $100k of FZDXX but then immediately selling the portion that had not cleared. When it did show up on Monday I repurchased it. So, in my case, even if the transfer had eventually been rejected, I still was in on FZDXX with less than $100k. I am not suggesting that you do a transfer that is going to fail because I am not sure what the consequences would be on either end.

I do not believe that there are money market options for the Core account in the CMA. That is why the SPRXX I had in it (purchased manualy) did not get sold when cash was needed in the CMA. And why you need to use the brokerage account with automatic overdraft to accomplish what many of us are doing.

ninjab
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Re: Fidelity Money Market Funds for everyday expenses

Post by ninjab » Mon Dec 17, 2018 8:31 am

My CMA account has no problem auto selling sprxx or any other money market to cover purchases, payments and withdraws. I do not use brokerage overdraft.

arf30
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Re: Fidelity Money Market Funds for everyday expenses

Post by arf30 » Mon Dec 17, 2018 8:38 am

MisterBill wrote:
Mon Dec 17, 2018 1:39 am
That is why the SPRXX I had in it (purchased manualy) did not get sold when cash was needed in the CMA. And why you need to use the brokerage account with automatic overdraft to accomplish what many of us are doing.
Something is up with your CMA, SPRXX is sold in mine without setting up overdraft or linking any other accounts.

MisterBill
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Re: Fidelity Money Market Funds for everyday expenses

Post by MisterBill » Mon Dec 17, 2018 1:16 pm

arf30 wrote:
Mon Dec 17, 2018 8:38 am
Something is up with your CMA, SPRXX is sold in mine without setting up overdraft or linking any other accounts.
So maybe if overdraft is set up, it uses that before selling the SPRXX that is in the CMA account? Would be interesting to see if it uses what I have in SPRXX if there is enough to cover the withdrawal without additional overdraft transfer.

hafjell
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Re: Fidelity Money Market Funds for everyday expenses

Post by hafjell » Mon Dec 17, 2018 4:31 pm

?For those of you who use it as your direct deposit account for paychecks, how quickly are the funds available to you? What I appreciate about the credit union is how quickly cash transfers in and out. When I transfer money into CMA at Fido, it takes much longer for the cash to settle. But I would like the increased rates and improved atm access/fee reimbursement, so I'm considering making Fido my "bank." Worth it?

jalm1
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Re: Fidelity Money Market Funds for everyday expenses

Post by jalm1 » Mon Dec 17, 2018 5:53 pm

I have overdraft and minimum balance transfer setup from a brokerage account to our CMA checking account which we use for daily funds. This works fine other than it creates transfers between accounts in my accounting system to reconcile (minor annoyance) and requires me to manually transfer direct deposits from CMA to brokerage and buy the MM fund twice a month.

It sounds like people have a similar setup within the CMA account with an automatic investment into the MM funds. How do you have this setup?

sarabayo
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Re: Fidelity Money Market Funds for everyday expenses

Post by sarabayo » Mon Dec 17, 2018 8:08 pm

hafjell wrote:
Mon Dec 17, 2018 4:31 pm
?For those of you who use it as your direct deposit account for paychecks, how quickly are the funds available to you? What I appreciate about the credit union is how quickly cash transfers in and out. When I transfer money into CMA at Fido, it takes much longer for the cash to settle. But I would like the increased rates and improved atm access/fee reimbursement, so I'm considering making Fido my "bank." Worth it?
In my experience, Fidelity is just as fast as my credit union was before I switched. The cash doesn't "settle" for another day after it first appears (i.e. it shows up as "pending activity"), but afaik, spending money from the CMA also doesn't "settle" for another day after it happens (i.e. it shows up as "pending activity" too, and negative pending activity just cancels with positive pending activity).

Cash
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Re: Fidelity Money Market Funds for everyday expenses

Post by Cash » Mon Dec 17, 2018 9:09 pm

sarabayo wrote:
Mon Dec 17, 2018 8:08 pm
hafjell wrote:
Mon Dec 17, 2018 4:31 pm
?For those of you who use it as your direct deposit account for paychecks, how quickly are the funds available to you? What I appreciate about the credit union is how quickly cash transfers in and out. When I transfer money into CMA at Fido, it takes much longer for the cash to settle. But I would like the increased rates and improved atm access/fee reimbursement, so I'm considering making Fido my "bank." Worth it?
In my experience, Fidelity is just as fast as my credit union was before I switched. The cash doesn't "settle" for another day after it first appears (i.e. it shows up as "pending activity"), but afaik, spending money from the CMA also doesn't "settle" for another day after it happens (i.e. it shows up as "pending activity" too, and negative pending activity just cancels with positive pending activity).
But I believe it’s available to trade as soon as it shows up, which is also a full day earlier than it was at my credit union.

vtMaps
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Location: central Vermont

Re: Fidelity Money Market Funds for everyday expenses

Post by vtMaps » Tue Dec 18, 2018 4:13 am

I have noticed recently that when I transfer money from the CMA to my local bank, the Fidelity site tells me that the money will arrive at the local bank in two days, but the money shows up the next day.

--vtMaps
The optimist proclaims that we live in the best of all possible worlds; and the pessimist fears this is true. --James Branch Cabell

hafjell
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Re: Fidelity Money Market Funds for everyday expenses

Post by hafjell » Tue Dec 18, 2018 1:38 pm

Cash wrote:
Mon Dec 17, 2018 9:09 pm
sarabayo wrote:
Mon Dec 17, 2018 8:08 pm
hafjell wrote:
Mon Dec 17, 2018 4:31 pm
?For those of you who use it as your direct deposit account for paychecks, how quickly are the funds available to you? What I appreciate about the credit union is how quickly cash transfers in and out. When I transfer money into CMA at Fido, it takes much longer for the cash to settle. But I would like the increased rates and improved atm access/fee reimbursement, so I'm considering making Fido my "bank." Worth it?
In my experience, Fidelity is just as fast as my credit union was before I switched. The cash doesn't "settle" for another day after it first appears (i.e. it shows up as "pending activity"), but afaik, spending money from the CMA also doesn't "settle" for another day after it happens (i.e. it shows up as "pending activity" too, and negative pending activity just cancels with positive pending activity).
But I believe it’s available to trade as soon as it shows up, which is also a full day earlier than it was at my credit union.
I've had a check bounce because it took the full five business days for the cash to settle. Didn't understand it at the time.

yeahman
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Re: Fidelity Money Market Funds for everyday expenses

Post by yeahman » Wed Dec 19, 2018 10:06 am

InertiaMan wrote:
Thu Nov 29, 2018 4:32 pm
I keep my CMA at $0 and use my ATM all the time. Never had a problem. But I always have sufficient $$ in a liquid MM account (SPAXX or FZDXX) in the tied brokerage account. If its not working for you, either there is some problem in the account setup, or you lack liquid cash equivalent in the brokerage??
There was a problem with the account. It works now.

RIMDBogle
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Re: Fidelity Money Market Funds for everyday expenses

Post by RIMDBogle » Thu Dec 27, 2018 9:07 pm

I did chat with Fido rep and found.

1) 10K minimum for FZDXX for IRA account
2) 100K minimum for FZDXX for taxable brokerage account

The above minimum is only entry position requirement. After entry, if we deploy the $$ to to other assets that cause FDZXX position goes to $100/1000, it will be OK.

Did you hear the same from Fedo rep and your account work this way ?

Thanks for sharing.

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Kevin M
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Re: Fidelity Money Market Funds for everyday expenses

Post by Kevin M » Thu Dec 27, 2018 9:44 pm

RIMDBogle wrote:
Thu Dec 27, 2018 9:07 pm
I did chat with Fido rep and found.

1) 10K minimum for FZDXX for IRA account
2) 100K minimum for FZDXX for taxable brokerage account

The above minimum is only entry position requirement. After entry, if we deploy the $$ to to other assets that cause FDZXX position goes to $100/1000, it will be OK.

Did you hear the same from Fedo rep and your account work this way ?

Thanks for sharing.
I think I've already shared this, but my FZDXX value has been less than $1,000 with no issues. However, I was told that this was because I have Private Client status, but perhaps that's not the case.

Kevin
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Cash
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Re: Fidelity Money Market Funds for everyday expenses

Post by Cash » Thu Dec 27, 2018 11:10 pm

I’m doing the same thing with FZEXX. $100k to buy, but you don’t be have to keep it at that level subsequently.

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