Fidelity as a one stop shop

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corn18
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Re: Fidelity as a one stop shop

Post by corn18 »

gpburdell wrote: Fri Jun 21, 2019 5:49 pm
Artsdoctor wrote: 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.
You don't have to link CMA to another account. Just put all the cash in a Fido money market like SPRXX in CMA and it is treated as cash. I pay most of my bills (5-6k/month) with CMA using SPRXX and have never had an issue in years. Though I always make sure there is a buffer of a couple thousand. I don't even have CMA linked to another account as I'm not a fan of something pulling automatically from another account with out my explicit instruction.
This is how I set it up as well except I manually put my paycheck into FZDXX twice a month. Unless I forget and it sits in core FDIC. Doesn't really bug me either way as this is just a checking account.

I'm with you and don't want anything linked to my daily checking account. This just makes sense to me.
Don't do something, just stand there!
montee4
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Re: Fidelity as a one stop shop

Post by montee4 »

One thing for you all to keep in mind. This won't happen very often to most people, but I recently submitted the paperwork to Fidelity to add my wife as a Joint Owner to the brokerage account that is the overdraft source to my CMA. Once they added her, it automatically cancelled my Cash Manager. I noticed it as I was getting an "insufficient fund" message at the ATM". There was no warning or message that the Cash Manager would be or was cancelled. I was lucky that I only saw it at the ATM and was able to re-enable the overdraft. Just something to think about if you change account info on the overdraft source account. Other than that, I have had no issues with the setup. I leave the CMA with a $0 balance, and do billpay, checks and ATM all from the CMA account.
Noimagination
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Re: Fidelity as a one stop shop

Post by Noimagination »

SagaciousTraveler wrote: Wed Dec 19, 2018 11:50 am Credit Card: The 2% card isn't' for me. I have the Citi Double and like you said, its my baseline card used when my others aren't.

Bank: We don't take on debt, all we used our Credit Union for was Bill Pay, Checks, Direct Deposit and ATM. So moving from our Credit Union to Fidelity actually helped us due to more ATM options and Branches.

Accounts: We had four accounts at Vanguard, we now have four accounts at fidelity. There is literally very little downside here as the funds we are invested in all have low expense fees across all the investment firms. The only thing I saw that Vanguard was better was the settlement fund. Fidelity i believe is 1.97% while Vanguard is 2.15%ish. Nothing to lose sleep over.

I also mentioned in another post that the consolidation makes it easier on my wife if something were to happen to me.

In conclusion I do not agree with your blanket statement that consolidation is inferior. For my family, it was an upgrade. However, I will agree that its not for everyone's situation.

Thanks.
Has anybody else run into issues trying to autopay their Citibank credit cards (i.e. Double Cash 2% cash back card) using a Fidelity CMA account? I haven't been able to get this working, but I can pay my Chase credit cards without any issues. When I spoke to the Citi rep they said it was because the CMA account was coding as a savings account, not a checking account, and they don't allow autopay with savings accounts. Fidelity didn't have any solutions to this problem. This is the only issue preventing me from closing my old checking account and completely consolidating with Fidelity.
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welderwannabe
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Re: Fidelity as a one stop shop

Post by welderwannabe »

Noimagination wrote: Tue Jul 02, 2019 3:43 pm Has anybody else run into issues trying to autopay their Citibank credit cards (i.e. Double Cash 2% cash back card) using a Fidelity CMA account? I haven't been able to get this working, but I can pay my Chase credit cards without any issues. When I spoke to the Citi rep they said it was because the CMA account was coding as a savings account, not a checking account, and they don't allow autopay with savings accounts. Fidelity didn't have any solutions to this problem. This is the only issue preventing me from closing my old checking account and completely consolidating with Fidelity.
Fidelity has their 2% cash back credit card. Not answering the question you asked, but its a solution to your problem.
I am not an investment professional, but I did stay at a Holiday Inn Express last night.
HomeStretch
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Re: Fidelity as a one stop shop

Post by HomeStretch »

Noimagination wrote: Tue Jul 02, 2019 3:43 pm Has anybody else run into issues trying to autopay their Citibank credit cards (i.e. Double Cash 2% cash back card) using a Fidelity CMA account? I haven't been able to get this working, but I can pay my Chase credit cards without any issues. When I spoke to the Citi rep they said it was because the CMA account was coding as a savings account, not a checking account, and they don't allow autopay with savings accounts. Fidelity didn't have any solutions to this problem. This is the only issue preventing me from closing my old checking account and completely consolidating with Fidelity.
I don’t think the Citi rep is correct. The Fidelity website says the CMA is a “checking account” and I confirmed this today with a rep while I was setting up a link at another brokerage to my Fidelity CMA account.
Lyrrad
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Re: Fidelity as a one stop shop

Post by Lyrrad »

Noimagination wrote: Tue Jul 02, 2019 3:43 pm
Has anybody else run into issues trying to autopay their Citibank credit cards (i.e. Double Cash 2% cash back card) using a Fidelity CMA account? I haven't been able to get this working, but I can pay my Chase credit cards without any issues. When I spoke to the Citi rep they said it was because the CMA account was coding as a savings account, not a checking account, and they don't allow autopay with savings accounts. Fidelity didn't have any solutions to this problem. This is the only issue preventing me from closing my old checking account and completely consolidating with Fidelity.
I’ve set up autopay on all my Citi cards without issue from my Cash Management account.
Spirit Rider
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Re: Fidelity as a one stop shop

Post by Spirit Rider »

HomeStretch wrote: Tue Jul 02, 2019 5:12 pm
Noimagination wrote: Tue Jul 02, 2019 3:43 pm Has anybody else run into issues trying to autopay their Citibank credit cards (i.e. Double Cash 2% cash back card) using a Fidelity CMA account? I haven't been able to get this working, but I can pay my Chase credit cards without any issues. When I spoke to the Citi rep they said it was because the CMA account was coding as a savings account, not a checking account, and they don't allow autopay with savings accounts. Fidelity didn't have any solutions to this problem. This is the only issue preventing me from closing my old checking account and completely consolidating with Fidelity.
I don’t think the Citi rep is correct. The Fidelity website says the CMA is a “checking account” and I confirmed this today with a rep while I was setting up a link at another brokerage to my Fidelity CMA account.
This sounds like a Citibank problem. I have been autopaying dozens of different accounts including several Citibank credit cards with my Fidelity CMA account since 2005 (when it was introduced as the mySmart Cash account).
doingwell
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Re: Fidelity as a one stop shop

Post by doingwell »

Spirit Rider wrote: Tue Jul 02, 2019 6:40 pm
HomeStretch wrote: Tue Jul 02, 2019 5:12 pm
Noimagination wrote: Tue Jul 02, 2019 3:43 pm Has anybody else run into issues trying to autopay their Citibank credit cards (i.e. Double Cash 2% cash back card) using a Fidelity CMA account? I haven't been able to get this working, but I can pay my Chase credit cards without any issues. When I spoke to the Citi rep they said it was because the CMA account was coding as a savings account, not a checking account, and they don't allow autopay with savings accounts. Fidelity didn't have any solutions to this problem. This is the only issue preventing me from closing my old checking account and completely consolidating with Fidelity.
I don’t think the Citi rep is correct. The Fidelity website says the CMA is a “checking account” and I confirmed this today with a rep while I was setting up a link at another brokerage to my Fidelity CMA account.
This sounds like a Citibank problem. I have been autopaying dozens of different accounts including several Citibank credit cards with my Fidelity CMA account since 2005 (when it was introduced as the mySmart Cash account).
I just moved to Fidelity and set up autopay with the CMA to Citi Double Cash. It executed this week without a hitch. I used the very long form of my account number (>15 digits!) and coded the account as checking if asked.
Noimagination
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Re: Fidelity as a one stop shop

Post by Noimagination »

That's good to know that some people have been successful linking their CMA account with Citi Cards for auto payment. I also assume the problem is with Citi Cards, but they haven't been too willing to help resolve this matter. I have considered cancelling my double cash card and going with the Fidelity 2% cashback credit card, but I don't think that is a good long-term solution to the problem. I also chatted with Fidelity again this afternoon to see if they had any thoughts on the matter, and they recommended using the e-bill pay option from Fidelity (which allows you to pay your bill in full each month), or using the account number printed on my CMA checks (starts with 771) instead of the normal 17 digit account number. The Fidelity rep also confirmed that the CMA account should code up as a Checking account through United Missouri Bank, so it's odd that it isn't working.
arf30
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Re: Fidelity as a one stop shop

Post by arf30 »

I've been autopaying the double cash from my CMA with no issues using the longer account number found on the website, vs the shorter one on the checks. Have moved most spending over to the Fidelity card anyway since it automatically sends cash back.
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gas_balloon
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Re: Fidelity as a one stop shop

Post by gas_balloon »

Have been using the CMA + Brokerage combination for a month now. Love this setup. The only thing I really miss is Zelle integration. Paying friends using Chase quickpay was so convenient. I wish Fidelity integrates with Zelle..
mervinj7
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Re: Fidelity as a one stop shop

Post by mervinj7 »

walletless wrote: Wed Jul 03, 2019 8:20 pm Have been using the CMA + Brokerage combination for a month now. Love this setup. The only thing I really miss is Zelle integration. Paying friends using Chase quickpay was so convenient. I wish Fidelity integrates with Zelle..

Same here. I still have my CapOne360 account for the sole purposes of using Zelle. In the end, I decided that it's probably better that I don't use Zelle with my primary checking account.
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drgenefish
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Re: Fidelity as a one stop shop

Post by drgenefish »

- I don't want the ability to withdraw Cash from an ATM
- I don't care about the protection element of having a CMA and brokerage and setting a limit, etc (I'll have only $25,000 or so in there and I trust Fidelity's fraud protection enough to not worry about that)

is there any advantage to get the CMA AND Brokerage? Can I just open the brokerage and do everything?

thank you.
ShadowRegent
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Re: Fidelity as a one stop shop

Post by ShadowRegent »

drgenefish wrote: Sat Jul 13, 2019 2:27 pm - I don't want the ability to withdraw Cash from an ATM
- I don't care about the protection element of having a CMA and brokerage and setting a limit, etc (I'll have only $25,000 or so in there and I trust Fidelity's fraud protection enough to not worry about that)

is there any advantage to get the CMA AND Brokerage? Can I just open the brokerage and do everything?

thank you.
You can just use the brokerage. It's what I do, and it works great. You can use SPAXX as the core position (sweep) as well.
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indexfundfan
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Re: Fidelity as a one stop shop

Post by indexfundfan »

drgenefish wrote: Sat Jul 13, 2019 2:27 pm - I don't want the ability to withdraw Cash from an ATM
- I don't care about the protection element of having a CMA and brokerage and setting a limit, etc (I'll have only $25,000 or so in there and I trust Fidelity's fraud protection enough to not worry about that)

is there any advantage to get the CMA AND Brokerage? Can I just open the brokerage and do everything?

thank you.
Brokerage alone can do everything. CMA is needed only if you want free ATM usage.
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protagonist
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Re: Fidelity as a one stop shop

Post by protagonist »

BogleMelon wrote: Sat Dec 15, 2018 9:33 pm I am thinking of moving my Roth (currently at Vanguard), Charles Schwab checking and Ally saving all to Fidelity to simplify my life.
My 3 questions are:
1- How to do such setup in Fido to maintain the same privileges as Charles and Ally? In other words how to have an alternative to checking with all the free ATM's, salary deposit..etc and earn interest in the same time with a simple setup?
2- What things I have to keep in mind to roll my Roth IRA's? (Am I limited to certain amount of rollovers per year for example?)
3- Is there any disadvantage to this setup vs my current one?

Thanks!
Simplification is great.

I can't answer regarding your Roths.

If you can make an initial deposit of $100K (which you do not have to maintain), you can get into money market FZDXX which has a high interest rate (not sure what it is now but I think in excess of 2.25%). Otherwise you can keep cash in a core account for spending purposes, and keep excess cash in a high interest internet bank and move it into Fidelity as needed.

You can get a check book and an ATM card....no fees withdrawing money with the ATM card and no charge for checks. I forget if there is a foreign transaction fee....if so it is not onerous.

Any bills that allow you to pay electronically can be easily linked to your Fidelity account.

If you overdraw your cash, you just pay margin interest which is much lower than bank fees.

It's very simple to link external accounts to Fidelity and transfers are easy and fast.

It's all very simple. I do it. Call Fidelity and a rep would be happy to answer all your questions.
edge
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Re: Fidelity as a one stop shop

Post by edge »

Cma has been working to pay my Citi Card. I use the acct and routing numbers displayed on the online account.

Noimagination wrote: Tue Jul 02, 2019 3:43 pm
SagaciousTraveler wrote: Wed Dec 19, 2018 11:50 am Credit Card: The 2% card isn't' for me. I have the Citi Double and like you said, its my baseline card used when my others aren't.

Bank: We don't take on debt, all we used our Credit Union for was Bill Pay, Checks, Direct Deposit and ATM. So moving from our Credit Union to Fidelity actually helped us due to more ATM options and Branches.

Accounts: We had four accounts at Vanguard, we now have four accounts at fidelity. There is literally very little downside here as the funds we are invested in all have low expense fees across all the investment firms. The only thing I saw that Vanguard was better was the settlement fund. Fidelity i believe is 1.97% while Vanguard is 2.15%ish. Nothing to lose sleep over.

I also mentioned in another post that the consolidation makes it easier on my wife if something were to happen to me.

In conclusion I do not agree with your blanket statement that consolidation is inferior. For my family, it was an upgrade. However, I will agree that its not for everyone's situation.

Thanks.
Has anybody else run into issues trying to autopay their Citibank credit cards (i.e. Double Cash 2% cash back card) using a Fidelity CMA account? I haven't been able to get this working, but I can pay my Chase credit cards without any issues. When I spoke to the Citi rep they said it was because the CMA account was coding as a savings account, not a checking account, and they don't allow autopay with savings accounts. Fidelity didn't have any solutions to this problem. This is the only issue preventing me from closing my old checking account and completely consolidating with Fidelity.
captpete
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Re: Fidelity as a one stop shop

Post by captpete »

Good morning,

I recently moved my HSA to fidelity and then happened upon this post. I then opened a CMA with fidelity. I am hesitant to pull the trigger on funding the account. The ER for the MM at fidelity is .47 and with VG is .16. We are only talking 30k or so, part of my Emergency fund. I initially looked at the CMA as a better alternative than my PNC checking account and then thought, "if i were more diligent on simply making the transfer to VG I could save on the expense ratio."

So my question is, Is it better to simply use our standard PNC checking account with say, $5-6k in it for immediate expenses and the rest with VG keeping the emergency fund in VG MM? How hard is it to get money out of VG? As we have not done that yet.

Does it still make sense to move to fidelity CMA?

I can't think of any reason to keep PNC other than changing our auto payments and that they do our Medallion Signature for her Simple IRA transfers.

The only big ticket item is our property tax bill we pay in September.

Any advise.

Thanks

Pete
snowman
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Re: Fidelity as a one stop shop

Post by snowman »

captpete wrote: Sun Jul 14, 2019 8:45 am Good morning,

I recently moved my HSA to fidelity and then happened upon this post. I then opened a CMA with fidelity. I am hesitant to pull the trigger on funding the account. The ER for the MM at fidelity is .47 and with VG is .16. We are only talking 30k or so, part of my Emergency fund. I initially looked at the CMA as a better alternative than my PNC checking account and then thought, "if i were more diligent on simply making the transfer to VG I could save on the expense ratio."

So my question is, Is it better to simply use our standard PNC checking account with say, $5-6k in it for immediate expenses and the rest with VG keeping the emergency fund in VG MM? How hard is it to get money out of VG? As we have not done that yet.

Does it still make sense to move to fidelity CMA?

I can't think of any reason to keep PNC other than changing our auto payments and that they do our Medallion Signature for her Simple IRA transfers.

The only big ticket item is our property tax bill we pay in September.

Any advise.

Thanks

Pete
If I were you...

I would make Fidelity brokerage my regular checking account, SPAXX as sweep vehicle (so you in essence earn 2% interest in your checking account with no work on your part). Fidelity website, support and capabilities much stronger than PNC, there is no comparison.

Then set up link between Fidelity and Vanguard, you can move money quickly if needed (push available next day).

Finally, property taxes should go on the CC with a good sign up bonus (or multiple cards if the bill is really high).
MisterBill
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Re: Fidelity as a one stop shop

Post by MisterBill »

captpete wrote: Sun Jul 14, 2019 8:45 amThe ER for the MM at fidelity is .47 and with VG is .16. We are only talking 30k or so, part of my Emergency fund. I initially looked at the CMA as a better alternative than my PNC checking account and then thought, "if i were more diligent on simply making the transfer to VG I could save on the expense ratio."
Is the yield on the Vanguard MM fund actually 0.3% higher? That's really what you need to be looking at, not the ER.
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petercooperjr
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Re: Fidelity as a one stop shop

Post by petercooperjr »

MisterBill wrote: Tue Jul 16, 2019 1:07 amIs the yield on the Vanguard MM fund actually 0.3% higher? That's really what you need to be looking at, not the ER.
You made me curious, so I looked it up. As of this moment:
Vanguard Prime Money Market (VMMXX): ER 0.16%, SEC 7-day yield 2.29%
Fidelity Money Market (SPRXX): ER 0.42%, SEC 7-day yield 2.14%

Vanguard Federal Money Market (default settlement account, VMFXX): ER 0.11%, SEC 7-day yield 2.28%
Fidelity Government Money Market (option for settlement account in their "normal" (non-CMA) brokerage account, SPAXX): ER 0.42%, SEC 7-day yield 2.03%


I didn't do any research on if the current yield differences are "typical", but as of now Vanguard is certainly giving more yield, though not as much as the ER differences would suggest.

I sure would like that as Fidelity keeps dropping their expenses to compete with the likes of Vanguard (offering the zero-ER funds and the like) that they try competing better with their MM funds too. Though I suspect it may be where they actually make a lot of their money (in the "management fee" part of the ER) and they're not going to want to give that up. That's probably really where the funding to handle giving out "free checking" and the like comes from.
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corn18
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Re: Fidelity as a one stop shop

Post by corn18 »

FZDXX is 2.26% 7 day yield (0.3% ER). $100k minimum but once you buy $100k, there is no minimum. That's what I use @ FIDO.
Don't do something, just stand there!
captpete
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Re: Fidelity as a one stop shop

Post by captpete »

snowman wrote: Sun Jul 14, 2019 9:30 am
captpete wrote: Sun Jul 14, 2019 8:45 am Good morning,

I recently moved my HSA to fidelity and then happened upon this post. I then opened a CMA with fidelity. I am hesitant to pull the trigger on funding the account. The ER for the MM at fidelity is .47 and with VG is .16. We are only talking 30k or so, part of my Emergency fund. I initially looked at the CMA as a better alternative than my PNC checking account and then thought, "if i were more diligent on simply making the transfer to VG I could save on the expense ratio."

So my question is, Is it better to simply use our standard PNC checking account with say, $5-6k in it for immediate expenses and the rest with VG keeping the emergency fund in VG MM? How hard is it to get money out of VG? As we have not done that yet.

Does it still make sense to move to fidelity CMA?

I can't think of any reason to keep PNC other than changing our auto payments and that they do our Medallion Signature for her Simple IRA transfers.

The only big ticket item is our property tax bill we pay in September.

Any advise.

Thanks

Pete
If I were you...

I would make Fidelity brokerage my regular checking account, SPAXX as sweep vehicle (so you in essence earn 2% interest in your checking account with no work on your part). Fidelity website, support and capabilities much stronger than PNC, there is no comparison.

Then set up link between Fidelity and Vanguard, you can move money quickly if needed (push available next day).

Finally, property taxes should go on the CC with a good sign up bonus (or multiple cards if the bill is really high).
Thanks for this response.
Property taxes 17-18k but MD charges a fee of 2.25% of total to use cc for payment.

Thanks again I think we'll pull the trigger on this.
snowman
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Re: Fidelity as a one stop shop

Post by snowman »

captpete wrote: Wed Jul 17, 2019 7:59 am
Property taxes 17-18k but MD charges a fee of 2.25% of total to use cc for payment.
I would still consider CC. The fees total about $400. If you split the payment among 4 cards with big signup bonus each, you could earn $2K+ for not much work, all tax-free. I would at least give it consideration if I were you. There are many threads here on that subject if you want more info.
matthewbarnhart
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Re: Fidelity as a one stop shop

Post by matthewbarnhart »

captpete wrote: Sun Jul 14, 2019 8:45 amSo my question is, Is it better to simply use our standard PNC checking account with say, $5-6k in it for immediate expenses and the rest with VG keeping the emergency fund in VG MM? How hard is it to get money out of VG? As we have not done that yet.
I just did the same -- moved my HSA to Fidelity, then opened the CMA once I saw this thread. I've since closed my Ally and Chase checking/savings accounts.

The difference in yield between SPRXX and VMMXX, on a $30,000 balance, is $3.75/month.

If you keep $5,000 in a no- or low-interest PNC checking account, and $25,000 in VMMXX, you'll lose $5.80/month in interest you would've earned having everything in SPRXX @ Fidelity.

It's a no-brainer, for me anyway.
mervinj7
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Re: Fidelity as a one stop shop

Post by mervinj7 »

matthewbarnhart wrote: Wed Jul 17, 2019 11:40 am
captpete wrote: Sun Jul 14, 2019 8:45 amSo my question is, Is it better to simply use our standard PNC checking account with say, $5-6k in it for immediate expenses and the rest with VG keeping the emergency fund in VG MM? How hard is it to get money out of VG? As we have not done that yet.
I just did the same -- moved my HSA to Fidelity, then opened the CMA once I saw this thread. I've since closed my Ally and Chase checking/savings accounts.

The difference in yield between SPRXX and VMMXX, on a $30,000 balance, is $3.75/month.

If you keep $5,000 in a no- or low-interest PNC checking account, and $25,000 in VMMXX, you'll lose $5.80/month in interest you would've earned having everything in SPRXX @ Fidelity.

It's a no-brainer, for me anyway.
The real trick is to temporarily put in $100k to get access to FZDXX and then you can just keep $30k. The yield difference is about 6 basis points right now between FZDXX and VMMXX, or $1.50/month.
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aj76er
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Re: Fidelity as a one stop shop

Post by aj76er »

I had my first issue with the Fidelity CMA account.

I’ve been trying to add my debit card to Apple Pay on my phone for over a week. In order to authorize the card, Fidelity forces you to call into customer service and answer a bunch of questions. The first time I tried this they said I was activated but it never went through. Then I got a call two days later from the fraud department trying to ensure it was me. Then I got a letter in the mail saying that I need to call to activate the card for Apple Pay, which I did (again), but it still has not been activated in the wallet app.

I appreciate the extra security around the debit card, but wow.
"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
mhalley
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Re: Fidelity as a one stop shop

Post by mhalley »

Debit cards are the devil, I would never buy things (especially on the internet) with one.
https://clark.com/personal-finance-cred ... -card-pay/
captpete
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Re: Fidelity as a one stop shop

Post by captpete »

snowman wrote: Wed Jul 17, 2019 9:01 am
captpete wrote: Wed Jul 17, 2019 7:59 am
Property taxes 17-18k but MD charges a fee of 2.25% of total to use cc for payment.
I would still consider CC. The fees total about $400. If you split the payment among 4 cards with big signup bonus each, you could earn $2K+ for not much work, all tax-free. I would at least give it consideration if I were you. There are many threads here on that subject if you want more info.
Interesting. Thanks for this I'll look into it.
lazyday
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Re: Fidelity as a one stop shop

Post by lazyday »

MisterBill wrote: Tue Jul 16, 2019 1:07 amIs the yield on the Vanguard MM fund actually 0.3% higher? That's really what you need to be looking at, not the ER.
Fidelity might be taking greater risks in order to make up for the high ER.
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aj76er
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Re: Fidelity as a one stop shop

Post by aj76er »

mhalley wrote: Mon Jul 22, 2019 10:41 pm Debit cards are the devil, I would never buy things (especially on the internet) with one.
https://clark.com/personal-finance-cred ... -card-pay/
I never use them either, but it’s the only way to get cash into the app. You can send cash to a bank account, but can’t pull from one. I needed cash in the app to reimburse someone for lunch :).

Anyway, the lack of history with the card, in my case, is probably what is prompting extra security.
"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
MisterBill
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Re: Fidelity as a one stop shop

Post by MisterBill »

lazyday wrote: Tue Jul 23, 2019 5:56 am
MisterBill wrote: Tue Jul 16, 2019 1:07 amIs the yield on the Vanguard MM fund actually 0.3% higher? That's really what you need to be looking at, not the ER.
Fidelity might be taking greater risks in order to make up for the high ER.
On a money market account with a constant NAV of 1???
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Re: Fidelity as a one stop shop

Post by lazyday »

MisterBill wrote: Tue Jul 23, 2019 10:34 pmOn a money market account with a constant NAV of 1???
Maybe, I haven't read the annual report to see what's in the portfolio.

Just because the NAV has been 1 recently, doesn't mean it always will be. It wouldn't surprise me if after some financial disaster, Vanguard's conservative money market fund NAV stays at 1, but some more aggressive money market funds break the buck.
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Re: Fidelity as a one stop shop

Post by abuss368 »

Curios if Vanguard will ever create a bank. A few years ago there were some surveys floated about the possibility. There are articles online that were interesting to read.
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Re: Fidelity as a one stop shop

Post by bck63 »

abuss368 wrote: Fri Jul 26, 2019 4:47 pm Curios if Vanguard will ever create a bank. A few years ago there were some surveys floated about the possibility. There are articles online that were interesting to read.
If they did, I'd have everything at Vanguard.
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Re: Fidelity as a one stop shop

Post by abuss368 »

bck63 wrote: Fri Jul 26, 2019 7:28 pm
abuss368 wrote: Fri Jul 26, 2019 4:47 pm Curios if Vanguard will ever create a bank. A few years ago there were some surveys floated about the possibility. There are articles online that were interesting to read.
If they did, I'd have everything at Vanguard.
Great minds think alike.
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Re: Fidelity as a one stop shop

Post by stlutz »

abuss368 wrote: Fri Jul 26, 2019 4:47 pm Curios if Vanguard will ever create a bank. A few years ago there were some surveys floated about the possibility. There are articles online that were interesting to read.
Don't think they would want to deal with the regulatory scrutiny. Both that the bank brings by itself but the oversight over their whole operation that adding a bank invites. Ten years later people on this board would be rueing the day that VG ever opened a bank.
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Re: Fidelity as a one stop shop

Post by abuss368 »

stlutz wrote: Fri Jul 26, 2019 7:31 pm
abuss368 wrote: Fri Jul 26, 2019 4:47 pm Curios if Vanguard will ever create a bank. A few years ago there were some surveys floated about the possibility. There are articles online that were interesting to read.
Don't think they would want to deal with the regulatory scrutiny. Both that the bank brings by itself but the oversight over their whole operation that adding a bank invites. Ten years later people on this board would be rueing the day that VG ever opened a bank.
Very good point. And if they did create a bank it may be checking and savings only and avoidance of lending and the issues that potentially brings! Or have only the highest quality clients for lending purposes.
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Re: Fidelity as a one stop shop

Post by Artsdoctor »

abuss368 wrote: Fri Jul 26, 2019 4:47 pm Curios if Vanguard will ever create a bank. A few years ago there were some surveys floated about the possibility. There are articles online that were interesting to read.
The Vanguard Advantage plan allowed customers to almost use Vanguard as a bank and it was an utter failure. Vanguard is shuttering the program at the end of this month and it would be very hard to imagine them re-visiting any bank-like activity given the embarrassment of the Advantage program.
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Re: Fidelity as a one stop shop

Post by abuss368 »

Artsdoctor wrote: Fri Jul 26, 2019 7:40 pm
abuss368 wrote: Fri Jul 26, 2019 4:47 pm Curios if Vanguard will ever create a bank. A few years ago there were some surveys floated about the possibility. There are articles online that were interesting to read.
The Vanguard Advantage plan allowed customers to almost use Vanguard as a bank and it was an utter failure. Vanguard is shuttering the program at the end of this month and it would be very hard to imagine them re-visiting any bank-like activity given the embarrassment of the Advantage program.
Agreed. Sad but true.
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Re: Fidelity as a one stop shop

Post by bck63 »

abuss368 wrote: Fri Jul 26, 2019 7:31 pm
bck63 wrote: Fri Jul 26, 2019 7:28 pm
abuss368 wrote: Fri Jul 26, 2019 4:47 pm Curios if Vanguard will ever create a bank. A few years ago there were some surveys floated about the possibility. There are articles online that were interesting to read.
If they did, I'd have everything at Vanguard.
Great minds think alike.
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Re: Fidelity as a one stop shop

Post by addicoe »

So a quick question. From all my research it seems that Fidelity is the only option for auto-sweep between CMA and MMA in a brokerage (via overdraft) that also has a debit card with free worldwide ATM withdrawals. Is that correct? Are there alternatives? I have BofA and Merrill Edge (for checking and CMA) and Schwab (for free ATM withdrawals) and unfortunately the only thing stopping me from using those is that Merrill Edge will not automatically deposit/withdraw money from the preferred deposit account (2.07% APY). If that were to work I would be set.
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Re: Fidelity as a one stop shop

Post by indexfundfan »

addicoe wrote: Sun Jul 28, 2019 6:21 pm So a quick question. From all my research it seems that Fidelity is the only option for auto-sweep between CMA and MMA in a brokerage (via overdraft) that also has a debit card with free worldwide ATM withdrawals. Is that correct? Are there alternatives? I have BofA and Merrill Edge (for checking and CMA) and Schwab (for free ATM withdrawals) and unfortunately the only thing stopping me from using those is that Merrill Edge will not automatically deposit/withdraw money from the preferred deposit account (2.07% APY). If that were to work I would be set.
Correct. Both Merrill and Schwab do not automatically redeem your money from the higher yielding options to cover for debits.
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Re: Fidelity as a one stop shop

Post by addicoe »

Can someone please correct me if I'm wrong? I've read through most of the comments on this topic and my understanding is that the only reason I would want to keep my money in the investment account instead of the CMA is because I can then put limits on withdrawals from the CMA to protect against fraud, and because I can choose a better sweep account. And on the flip side the only reason I need the CMA is because it gives me free ATM withdrawals. Is that correct? My plan is:

- $0 in CMA with overdraft turned on
- Keep all money in investment account in FZDXX for the best yield and ability for auto redemption when withdrawing funds from CMA or bill pay
- Set up direct deposit into investment account to get benefit of auto-sweep into SPAXX core fund
- Set up some kind of scheduled transfer of core funds into FZDXX at regular intervals?
- Bill pay and checks can be done from either account depending on my risk tolerance (safer perhaps to use CMA)
- Only keep debit card for CMA to allow limiting how much can be withdrawn from account, and because investment account does not get free ATM reimbursement below some amount of assets I don't have

Anything I am missing? Is FZDXX really not allowed as a sweep?
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Re: Fidelity as a one stop shop

Post by Kevin M »

addicoe wrote: Tue Jul 30, 2019 10:19 pm Can someone please correct me if I'm wrong? I've read through most of the comments on this topic and my understanding is that the only reason I would want to keep my money in the investment account instead of the CMA is because I can then put limits on withdrawals from the CMA to protect against fraud, and because I can choose a better sweep account. And on the flip side the only reason I need the CMA is because it gives me free ATM withdrawals. Is that correct?
Yeah, for me the better sweep account is the main reason I'm using just the brokerage account for bill payments. I have a CMA just in case I want to do ATM withdrawals, and don't even set a brokerage account as a funding account, so very limited potential for fraud.
My plan is:

- $0 in CMA with overdraft turned on
- Keep all money in investment account in FZDXX for the best yield and ability for auto redemption when withdrawing funds from CMA or bill pay
- Set up direct deposit into investment account to get benefit of auto-sweep into SPAXX core fund
- Set up some kind of scheduled transfer of core funds into FZDXX at regular intervals?
- Bill pay and checks can be done from either account depending on my risk tolerance (safer perhaps to use CMA)
- Only keep debit card for CMA to allow limiting how much can be withdrawn from account, and because investment account does not get free ATM reimbursement below some amount of assets I don't have
Seems like that will work.

Some have mentioned an occasional issue with the overdraft not working, but others have said they've never had a problem. I'm a little nervous about it, so am just using the brokerage with SPAXX for bill payments. I limit fraud risk by using a separate brokerage account for bill payments, with a limited amount of cash + margin in it.

I'm not bothering with FZDXX because the amount I lose in monthly interest on the amount necessary to pay bills is so small, and I don't want to rely on overdraft.
Anything I am missing? Is FZDXX really not allowed as a sweep?
Correct. I discussed with a Fidelity rep (although at the time I was more interested in Treasury Only), and he explained that Fidelity decided on a limited set of sweep funds for each type of account (e.g., IRA or taxable).

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Re: Fidelity as a one stop shop

Post by addicoe »

I talked with a rep today and they told me that > 100k would qualify me for premium client status so I would get free ATM withdrawals from the investment/brokerage account. If that is the case I'm not sure of the point to the CMA. Is there a benefit to having both in this case?
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Re: Fidelity as a one stop shop

Post by Artsdoctor »

addicoe wrote: Wed Jul 31, 2019 5:31 pm I talked with a rep today and they told me that > 100k would qualify me for premium client status so I would get free ATM withdrawals from the investment/brokerage account. If that is the case I'm not sure of the point to the CMA. Is there a benefit to having both in this case?
No. I use an isolated brokerage account at Fidelity for all of my checkwriting and billpay needs. I don't have a CMA and I don't use overdraft protection or anything else. I get ATM privileges and any fees incurred are promptly reimbursed by Fidelity. The brokerage account is fed by Vanguard whenever I need to replenish the balance (Vanguard will always have higher yielding money market accounts than Fidelity).

I have only been using the Fidelity account for this since the beginning of the year when the Vanguard Advantage account was on its way out. I can tell you that the ease of use at Fidelity is much greater, much faster, and more integrated than Vanguard.
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Re: Fidelity as a one stop shop

Post by arf30 »

Although I use the CMA because I prefer having 1 month of expenses in FDIC, the interest you'll make by using the brokerage instead would probably more than offset any ATM fees redunded by the CMA.
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Re: Fidelity as a one stop shop

Post by Artsdoctor »

arf30 wrote: Thu Aug 01, 2019 7:13 am Although I use the CMA because I prefer having 1 month of expenses in FDIC, the interest you'll make by using the brokerage instead would probably more than offset any ATM fees redunded by the CMA.
The large investment houses like Vanguard, Fidelity, and Schwab are going to have safe money market funds. I really don't think you're going to see their settlement funds, with all of the protection mandated by law, "breaking the buck." If you're using Fidelity's brokerage account and not the CMA account, your ATM card will still be free as well as long as you have a certain balance of investments anywhere at Fidelity.
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Re: Fidelity as a one stop shop

Post by Kevin M »

Artsdoctor wrote: Wed Jul 31, 2019 5:47 pm
addicoe wrote: Wed Jul 31, 2019 5:31 pm I talked with a rep today and they told me that > 100k would qualify me for premium client status so I would get free ATM withdrawals from the investment/brokerage account. If that is the case I'm not sure of the point to the CMA. Is there a benefit to having both in this case?
No. I use an isolated brokerage account at Fidelity for all of my checkwriting and billpay needs. I don't have a CMA and I don't use overdraft protection or anything else. I get ATM privileges and any fees incurred are promptly reimbursed by Fidelity. The brokerage account is fed by Vanguard whenever I need to replenish the balance (Vanguard will always have higher yielding money market accounts than Fidelity).

I have only been using the Fidelity account for this since the beginning of the year when the Vanguard Advantage account was on its way out. I can tell you that the ease of use at Fidelity is much greater, much faster, and more integrated than Vanguard.
I'm in basically the same situation: switched from Vanguard Advantage to Fidelity brokerage, and using Vanguard MM fund for cash other than what I anticipate for this month's bills. I only have a few minor differences.

I'm keeping a small amount of Tbills in the brokerage account to provide margin for overdraft.

I don't even want a debit card for the brokerage account I'm using to pay the big bills. It seems like adding additional potential for fraud, although I'm not too worried about it. If you're not worried about this, and qualify for private client status (or whatever they call it these days), then no, you don't need a CMA.

I had opened a CMA before figuring out that the brokerage made more sense, and I have a debit/ATM card for the CMA. So I keep a small amount in the CMA, and could quickly transfer from brokerage to CMA if I wanted to do a larger ATM withdrawal. I have another convenient source for ATM withdrawals, which I only do once per month or less, so haven't even done one from the CMA yet.

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