Fidelity as a one stop shop

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mervinj7
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Re: Fidelity as a one stop shop

Post by mervinj7 » Wed Jun 12, 2019 1:36 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).
I did a quick check of my account as well. For a direct deposit of a scheduled paycheck that was dated for 5/31 on the paystub, the funds were available on 5/30 in my Fidelity CMA account. I don't believe that happened when I used to use CapOne360 as my primary checking account.

snowman
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Re: Fidelity as a one stop shop

Post by snowman » 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.

texas lawdog
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Re: Fidelity as a one stop shop

Post by texas lawdog » Wed Jun 12, 2019 1:57 pm

Responding back to the OP...
I attempted to do the same and consolidate numerous accounts to Fidelity, but my first account xfer (an HSA) was fumbled and stuck over at Lively.
The rest of my account transfers are on hold at this point until they can either figure it out or thinking about consolidating into TD Ameritrade, since I already have a number of accounts there (including the HSA).

This morning Fidelity asked for a rating of my recent "customer experience" and I attempted to be fair, but they have a number of issues to work out including customer escalation issues and the ability to chat with someone instead of going thru their virtual assistant.

Hopefully other people have a better outcome.

Good Luck

arf30
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Re: Fidelity as a one stop shop

Post by arf30 » Wed Jun 12, 2019 2:47 pm

Lots of banks do early direct deposit these days, I've noticed it with NFCU, Fidelity and Ally, and have heard USAA does it as well. If you're budgeting properly it shouldn't matter either way.

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BogleMelon
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Re: Fidelity as a one stop shop

Post by BogleMelon » Wed Jun 12, 2019 3:01 pm

arf30 wrote:
Wed Jun 12, 2019 2:47 pm
Lots of banks do early direct deposit these days, I've noticed it with NFCU, Fidelity and Ally, and have heard USAA does it as well. If you're budgeting properly it shouldn't matter either way.
I have my paycheck deposited into Ally checking account. I always get the funds on Fridays!
"One of the funny things about stock market, every time one is buying another is selling, and both think they are astute" - William Feather

Spirit Rider
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Re: Fidelity as a one stop shop

Post by Spirit Rider » 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.

retired_tom
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Re: Fidelity as a one stop shop

Post by retired_tom » Wed Jun 12, 2019 3:44 pm

Ok, I'm slightly (or greatly) confused. I have my individual brokerage account along with my IRA with Fidelity. What I want to do is move all my banking over to Fidelity as well. So, I open another brokerage account, and direct my SS and other direct deposits to that account in SPAXX. That will be the only cash in that brokerage account. Now, if I hit the Manage Cash tab, it allows me to order checks, a debit card, etc. So if I do that from that screen, it automatically becomes a CMA account, or just a brokerage account with CMA functionality? Do I need to specifically open a CMA account in addition to the brokerage account. I understand what I've previously read was that I need to open both a brokerage and CMA account, and tie the OD protection of the CMA to that brokerage account. Do I really need to do that?

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8foot7
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Re: Fidelity as a one stop shop

Post by 8foot7 » Wed Jun 12, 2019 3:47 pm

Kevin M wrote:
Wed Jun 12, 2019 1:06 pm
lstone19 wrote:
Wed Jun 12, 2019 12:57 pm
I wonder, though, if that means they will also post ACH pulled withdrawals early. That would not be good if it causes an overdraft.
I've never seen that happen.

Kevin
I have an ACH withdrawal on the 17th of every month (it pays a furniture line of credit off) and it never comes out of Fidelity brokerage before the 17th.

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Kevin M
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Re: Fidelity as a one stop shop

Post by Kevin M » Wed Jun 12, 2019 5:36 pm

retired_tom wrote:
Wed Jun 12, 2019 3:44 pm
Ok, I'm slightly (or greatly) confused. I have my individual brokerage account along with my IRA with Fidelity. What I want to do is move all my banking over to Fidelity as well. So, I open another brokerage account, and direct my SS and other direct deposits to that account in SPAXX. That will be the only cash in that brokerage account. Now, if I hit the Manage Cash tab, it allows me to order checks, a debit card, etc. So if I do that from that screen, it automatically becomes a CMA account, or just a brokerage account with CMA functionality? Do I need to specifically open a CMA account in addition to the brokerage account. I understand what I've previously read was that I need to open both a brokerage and CMA account, and tie the OD protection of the CMA to that brokerage account. Do I really need to do that?
You can do everything you want with just a brokerage account. The main benefit of a CMA is ATM fee reimbursements. If you have enough assets at Fidelity to qualify for private client status, you get ATM reimbursements in a regular brokerage account.

You can do everything you want with just a CMA. The main benefit of a brokerage account is availability of higher-yielding core funds (the fund or account that cash sweeps in and out of). You can get the higher yields by manually transferring cash from the core account/fund to the higher yielding money market fund. Debits will automatically be pulled from the higher-yielding MM fund.

You don't really need both. You could even use your existing brokerage account, keeping in mind the ATM fee reimbursements.

I created a separate brokerage account because my main brokerage is a margin account with a large margin balance, and I don't want to expose that to debit card or other cash management fraud overdrafts. I am private client, so don't really need a CMA just for ATM reimbursements. I created a CMA anyway, to have the flexibility of having an account for debit card and ATM transactions only, with none of the other accounts exposed if I so choose.

Kevin
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bayview
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Re: Fidelity as a one stop shop

Post by bayview » Wed Jun 12, 2019 8:13 pm

arf30 wrote:
Wed Jun 12, 2019 2:47 pm
Lots of banks do early direct deposit these days, I've noticed it with NFCU, Fidelity and Ally, and have heard USAA does it as well. If you're budgeting properly it shouldn't matter either way.
My federal paycheck always showed up by 7:30 Thursday, always. Payday was Friday. Most other employees had to wait for Friday.

(edit to add: this was USAA)
Last edited by bayview on Fri Jun 14, 2019 8:37 am, edited 1 time in total.
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joe8d
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Re: Fidelity as a one stop shop

Post by joe8d » Wed Jun 12, 2019 9:22 pm

Can an Ally Bank Savings account be moved to a Vanguard Brokerage Account?
All the Best, | Joe

spammagnet
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Re: Fidelity as a one stop shop

Post by spammagnet » Wed Jun 12, 2019 10:03 pm

Kevin M wrote:
Wed Jun 12, 2019 5:36 pm
You can do everything you want with just a brokerage account. The main benefit of a CMA is ATM fee reimbursements. ...
You can also set it up to draft from multiple accounts, if you have more than one at Fidelity. In that way it acts as a centralized point for your cash flow. In transferring from those funding accounts to cover expenses, though, it will not liquidate investments other than MMFs.

tj
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Re: Fidelity as a one stop shop

Post by tj » Wed Jun 12, 2019 10:06 pm

joe8d wrote:
Wed Jun 12, 2019 9:22 pm
Can an Ally Bank Savings account be moved to a Vanguard Brokerage Account?
sure. why not?

retired_tom
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Re: Fidelity as a one stop shop

Post by retired_tom » Thu Jun 13, 2019 6:17 am

Kevin M wrote:
Wed Jun 12, 2019 5:36 pm
You can do everything you want with just a brokerage account. The main benefit of a CMA is ATM fee reimbursements. If you have enough assets at Fidelity to qualify for private client status, you get ATM reimbursements in a regular brokerage account.

You can do everything you want with just a CMA. The main benefit of a brokerage account is availability of higher-yielding core funds (the fund or account that cash sweeps in and out of). You can get the higher yields by manually transferring cash from the core account/fund to the higher yielding money market fund. Debits will automatically be pulled from the higher-yielding MM fund.

You don't really need both. You could even use your existing brokerage account, keeping in mind the ATM fee reimbursements.

I created a separate brokerage account because my main brokerage is a margin account with a large margin balance, and I don't want to expose that to debit card or other cash management fraud overdrafts. I am private client, so don't really need a CMA just for ATM reimbursements. I created a CMA anyway, to have the flexibility of having an account for debit card and ATM transactions only, with none of the other accounts exposed if I so choose.

Kevin
Thanks, that clears it up. I guess I was missing the part about the ATM reimbursements. That's actually what I was looking for. I'll open a CMA.
Tom

NativeTxn
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Re: Fidelity as a one stop shop

Post by NativeTxn » Thu Jun 13, 2019 7:03 am

I recently set up a small amount of my paycheck to go into my Fidelity account (brokerage that I set up as the overdraft account to my CMA) as part of my plan (detailed on page 14 of this thread) to test the viability of using Fidelity as a one-stop shop. Our scheduled pay date is tomorrow (Friday, 6/14) and I can confirm that the small amount showed up in the Fidelity account this morning (Thursday, 6/13). I won't see the rest of the check until tomorrow in my BOA checking account.

So, it looks like the "day before" rule is applicable, at least in my case.

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walletless
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Re: Fidelity as a one stop shop

Post by walletless » Thu Jun 13, 2019 12:37 pm

NativeTxn wrote:
Thu Jun 13, 2019 7:03 am
I recently set up a small amount of my paycheck to go into my Fidelity account (brokerage that I set up as the overdraft account to my CMA) as part of my plan (detailed on page 14 of this thread) to test the viability of using Fidelity as a one-stop shop. Our scheduled pay date is tomorrow (Friday, 6/14) and I can confirm that the small amount showed up in the Fidelity account this morning (Thursday, 6/13). I won't see the rest of the check until tomorrow in my BOA checking account.

So, it looks like the "day before" rule is applicable, at least in my case.
I split my paychecks into 3 bank: Purepoint, Ally Checking and Chase Checking accounts. In all three, I always received the payment on Friday (day of paycheck).
I recently moved to use Fidelity CM + Fidelity Brokerage, and now deposit part of my paycheck to Fidelity Brokerage instead of Ally checking. I do see that Fidelity makes the deposit available on Thursday for investing (Friday for withdrawing), so there does seem to be a early available cash with Fidelity.

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walletless
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Re: Fidelity as a one stop shop

Post by walletless » Thu Jun 13, 2019 12:38 pm

NativeTxn wrote:
Thu Jun 13, 2019 7:03 am
I recently set up a small amount of my paycheck to go into my Fidelity account (brokerage that I set up as the overdraft account to my CMA) as part of my plan (detailed on page 14 of this thread) to test the viability of using Fidelity as a one-stop shop. Our scheduled pay date is tomorrow (Friday, 6/14) and I can confirm that the small amount showed up in the Fidelity account this morning (Thursday, 6/13). I won't see the rest of the check until tomorrow in my BOA checking account.

So, it looks like the "day before" rule is applicable, at least in my case.
I split my paychecks into 3 bank: Purepoint, Ally Checking and Chase Checking accounts. In all three, I always received the payment on Friday (day of paycheck).
I recently moved to use Fidelity CM + Fidelity Brokerage, and now deposit part of my paycheck to Fidelity Brokerage instead of Ally checking. I do see that Fidelity makes the deposit available on Thursday for investing (Friday for withdrawing), so there does seem to be a early available cash with Fidelity.

engineerbme
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Re: Fidelity as a one stop shop

Post by engineerbme » Fri Jun 14, 2019 1:39 pm

recently did an ATM withdrawal and it showed up as 'debit card purchase', hoping the reimbursement actually takes place because contrary to what ive read on this forum it should be 'instant' (?) but the Fidelity chat rep I spoke to said to give it 2-3 business days...the rep couldn't verify if it was coded properly and to keep an eye on it which worries me...i literally just used one of BoA's ATM machines in their branch office so weird to see it show up as a debit card purchase and not something like 'atm withdrawal', anyone else?

retired_tom
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Re: Fidelity as a one stop shop

Post by retired_tom » Fri Jun 14, 2019 1:51 pm

One other question before I go the Fidelity one stop shop. Does Fidelity allow autopay accounts? What I'm talking about is, in this specific case, my Medicare AARP-UHC Medigap insurance. They give a $5 discount with autopay, which allows them to pull their payment from my account monthly. I'm not sure of the actual inner workings on how they set that up, all I know is that I filled out, and signed a form, that gave them my account numbers at my bank, and they automatically pull the funds for the monthly premium. I guess I can always keep just a cheap checking account at a B&M, and use that for the autopay bills.

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8foot7
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Re: Fidelity as a one stop shop

Post by 8foot7 » Fri Jun 14, 2019 2:00 pm

retired_tom wrote:
Fri Jun 14, 2019 1:51 pm
One other question before I go the Fidelity one stop shop. Does Fidelity allow autopay accounts? What I'm talking about is, in this specific case, my Medicare AARP-UHC Medigap insurance. They give a $5 discount with autopay, which allows them to pull their payment from my account monthly. I'm not sure of the actual inner workings on how they set that up, all I know is that I filled out, and signed a form, that gave them my account numbers at my bank, and they automatically pull the funds for the monthly premium. I guess I can always keep just a cheap checking account at a B&M, and use that for the autopay bills.
Yes.

mptfan
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Re: Fidelity as a one stop shop

Post by mptfan » Fri Jun 14, 2019 2:06 pm

engineerbme wrote:
Fri Jun 14, 2019 1:39 pm
recently did an ATM withdrawal and it showed up as 'debit card purchase', hoping the reimbursement actually takes place because contrary to what ive read on this forum it should be 'instant' (?)...
Why do you say it should be "instant?"

lstone19
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Re: Fidelity as a one stop shop

Post by lstone19 » Fri Jun 14, 2019 3:31 pm

mptfan wrote:
Fri Jun 14, 2019 2:06 pm
engineerbme wrote:
Fri Jun 14, 2019 1:39 pm
recently did an ATM withdrawal and it showed up as 'debit card purchase', hoping the reimbursement actually takes place because contrary to what ive read on this forum it should be 'instant' (?)...
Why do you say it should be "instant?"
I think engineerbme's idea of instant and Fidelity's are probably different. From what I can tell, almost all financial transactions are still posted overnight. Everything you see intra-day is just a pending (or memo) transaction. And with card transactions, there can be a day or two delay as the transaction moves through one bank's overnight processing to the next bank's. My experience is the fee reimbursement does post simultaneously to the final posting of the withdrawal which does meet one definition of instant (particularly when compared to Schwab which does it at the end of the month).

GeraniumLover
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Re: Fidelity as a one stop shop

Post by GeraniumLover » Fri Jun 14, 2019 6:32 pm

engineerbme wrote:
Fri Jun 14, 2019 1:39 pm
recently did an ATM withdrawal and it showed up as 'debit card purchase', hoping the reimbursement actually takes place because contrary to what ive read on this forum it should be 'instant' (?) but the Fidelity chat rep I spoke to said to give it 2-3 business days...the rep couldn't verify if it was coded properly and to keep an eye on it which worries me...i literally just used one of BoA's ATM machines in their branch office so weird to see it show up as a debit card purchase and not something like 'atm withdrawal', anyone else?
That happens with me too. After a couple of days they correct the description, in my experience

engineerbme
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Re: Fidelity as a one stop shop

Post by engineerbme » Sat Jun 15, 2019 7:54 am

GeraniumLover wrote:
Fri Jun 14, 2019 6:32 pm
engineerbme wrote:
Fri Jun 14, 2019 1:39 pm
recently did an ATM withdrawal and it showed up as 'debit card purchase', hoping the reimbursement actually takes place because contrary to what ive read on this forum it should be 'instant' (?) but the Fidelity chat rep I spoke to said to give it 2-3 business days...the rep couldn't verify if it was coded properly and to keep an eye on it which worries me...i literally just used one of BoA's ATM machines in their branch office so weird to see it show up as a debit card purchase and not something like 'atm withdrawal', anyone else?
That happens with me too. After a couple of days they correct the description, in my experience
ohhh ok, it shows up as 'cash advance ATMYD00' now, hopefully it gets reimbursed

jbsmith05
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Re: Fidelity as a one stop shop

Post by jbsmith05 » 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?

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msi
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Re: Fidelity as a one stop shop

Post by msi » Sat Jun 15, 2019 1:37 pm

Do you have the same legal protections in the case of fraud with the CMA that you would with an actual bank checking account?

spammagnet
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Re: Fidelity as a one stop shop

Post by spammagnet » Sat Jun 15, 2019 4:52 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?
They do. I had a similar issue once, but never since then. I suggest you call Fidelity to find out why they refused it.

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Re: Fidelity as a one stop shop

Post by Artsdoctor » Sat Jun 15, 2019 7:37 pm

retired_tom wrote:
Fri Jun 14, 2019 1:51 pm
One other question before I go the Fidelity one stop shop. Does Fidelity allow autopay accounts? What I'm talking about is, in this specific case, my Medicare AARP-UHC Medigap insurance. They give a $5 discount with autopay, which allows them to pull their payment from my account monthly. I'm not sure of the actual inner workings on how they set that up, all I know is that I filled out, and signed a form, that gave them my account numbers at my bank, and they automatically pull the funds for the monthly premium. I guess I can always keep just a cheap checking account at a B&M, and use that for the autopay bills.
Yes. You'll have a routing for Fidelity which you can give to your insurance company, and they can arrange to have autopays each month.

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Artsdoctor
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Re: Fidelity as a one stop shop

Post by Artsdoctor » Sat Jun 15, 2019 7:39 pm

engineerbme wrote:
Fri Jun 14, 2019 1:39 pm
recently did an ATM withdrawal and it showed up as 'debit card purchase', hoping the reimbursement actually takes place because contrary to what ive read on this forum it should be 'instant' (?) but the Fidelity chat rep I spoke to said to give it 2-3 business days...the rep couldn't verify if it was coded properly and to keep an eye on it which worries me...i literally just used one of BoA's ATM machines in their branch office so weird to see it show up as a debit card purchase and not something like 'atm withdrawal', anyone else?
At least for my brokerage account, it's not instant. The fee has always been reimbursed within 2-3 business days and I've never had a problem.

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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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