That's a great data point--thanks for sharing! I assume that because Fido has free wire transfers they've made it in their interest to get ACH done as quickly as possible.Horsefly wrote: ↑Fri Oct 25, 2019 3:36 pm Just thought I would post what happened to me today.
At about 8:30am this morning (MST) I put in a request at Fidelity to transfer $10K to my checking account at Ally. Based on previous experience, I figured I would see the money in my Ally account Monday, or Tuesday morning at the latest. I logged into my Ally account at 2:15pm, and BAM! It's already there, and available. This was just a normal EFT, not any expedited wire transfer.
That's the fastest I think I've seen. Good on both Fidelity and Ally for doing it so quickly!
Interesting side note: According to Fidelity, the transfer is still being processed.
Fidelity as a one stop shop
Re: Fidelity as a one stop shop
- indexfundfan
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Re: Fidelity as a one stop shop
Fidelity has been offering same day ACH for a while. I think this has been discussed upthread.stlutz wrote: ↑Fri Oct 25, 2019 8:55 pmThat's a great data point--thanks for sharing! I assume that because Fido has free wire transfers they've made it in their interest to get ACH done as quickly as possible.Horsefly wrote: ↑Fri Oct 25, 2019 3:36 pm Just thought I would post what happened to me today.
At about 8:30am this morning (MST) I put in a request at Fidelity to transfer $10K to my checking account at Ally. Based on previous experience, I figured I would see the money in my Ally account Monday, or Tuesday morning at the latest. I logged into my Ally account at 2:15pm, and BAM! It's already there, and available. This was just a normal EFT, not any expedited wire transfer.
That's the fastest I think I've seen. Good on both Fidelity and Ally for doing it so quickly!
Interesting side note: According to Fidelity, the transfer is still being processed.
These are my observations:
○ Submitted before 8am (<=$25k) : credited before 1pm same day.
○ Submitted before 12pm (<=$25k) : credited around 3.50pm same day.
○ If amount is greater than $25k, the transfer is next day.
The time of credit could be delayed by your bank's processing timeline (possibly batch-processed).
All times are ET.
My signature has been deleted.
Re: Fidelity as a one stop shop
I noted earlier that a transfer I submitted around 10 p.m. EDT (less than $25k) was at my bank by 8 a.m. the following morning.indexfundfan wrote: ↑Fri Oct 25, 2019 9:31 pmFidelity has been offering same day ACH for a while. I think this has been discussed upthread.stlutz wrote: ↑Fri Oct 25, 2019 8:55 pmThat's a great data point--thanks for sharing! I assume that because Fido has free wire transfers they've made it in their interest to get ACH done as quickly as possible.Horsefly wrote: ↑Fri Oct 25, 2019 3:36 pm Just thought I would post what happened to me today.
At about 8:30am this morning (MST) I put in a request at Fidelity to transfer $10K to my checking account at Ally. Based on previous experience, I figured I would see the money in my Ally account Monday, or Tuesday morning at the latest. I logged into my Ally account at 2:15pm, and BAM! It's already there, and available. This was just a normal EFT, not any expedited wire transfer.
That's the fastest I think I've seen. Good on both Fidelity and Ally for doing it so quickly!
Interesting side note: According to Fidelity, the transfer is still being processed.
These are my observations:
○ Submitted before 8am (<=$25k) : credited before 1pm same day.
○ Submitted before 12pm (<=$25k) : credited around 3.50pm same day.
○ If amount is greater than $25k, the transfer is next day.
The time of credit could be delayed by your bank's processing timeline (possibly batch-processed).
All times are ET.
Re: Fidelity as a one stop shop
56.16% CA tax exempt. The rest is not.
Re: Fidelity as a one stop shop
For a long time, the ATM withdrawal limit for my Fidelity CMA ATM/debit card was $1,000. Recently I noticed that it has been raised to $1,020. I suppose the extra $20 is to account for potential fees, thereby allowing you to withdraw the full $1,000 per day, under most circumstances.
Re: Fidelity as a one stop shop
where are you seeing your daily limit?bawr wrote: ↑Sat Oct 26, 2019 5:45 amFor a long time, the ATM withdrawal limit for my Fidelity CMA ATM/debit card was $1,000. Recently I noticed that it has been raised to $1,020. I suppose the extra $20 is to account for potential fees, thereby allowing you to withdraw the full $1,000 per day, under most circumstances.
Re: Fidelity as a one stop shop
You're welcome! Glad you find it useful.bck63 wrote: ↑Fri Oct 25, 2019 3:29 pmKevin thanks for this whole post and I am going to read it in depth.Kevin M wrote: ↑Fri Oct 25, 2019 3:12 pm In my Fidelity brokerage that I'm using to pay bills (I only use CMA for ATM), I am using SPAXX as my core fund, which at an SEC yield of 1.55% is TEY for me of 1.66%. In that account I bought $10K face of 6-month Treasuries on 5/28 at a yield of 2.387% (TEY = 2.68%) to provide some margin for overdraft protection. When the bills mature on 11/29/2019, I'll consider rolling them.
Kevin
Because of the partial exemption from state income tax, I estimate my compound taxable-equivalent yield (TEY) on SPAXX at 1.66% (based on compound yield of 1.55%), so higher than FDRXX compound yield of 1.60%. Of course there is some uncertainty in the TEY, because I'm basing it on 2018 USGO income percent of about 56%. I care about the yield (net of ER), not the expense ratio.bck63 wrote: ↑Fri Oct 25, 2019 3:29 pm But I wanted to mention, consider using FDRXX in your CMA (can't use it as core but can buy it separately). As near as I can tell it is absolutely identical to SPAXX, but the ER is 0.38%, as opposed to 0.42%. For the life of me I don't know why. My only guess is that I read somewhere that FDRXX is the sweep account for Fidelity IRAs. I don't know if that is accurate but maybe that has something to do with it.
The yield difference is only 6 bp (FDRXX is 1.61%) but I use FDRXX on principle because it's cheaper.
SPRXX has a slightly higher compound yield than SPAXX TEY at 1.68%; due to the uncertainty in SPAXX, I might be better of using this, but the difference in estimated yields is small, and the amount I keep in the account is small, so no big deal.
I could earn a bit more on non-core MM fund FDLXX (Treasury only), at compound TEY of 1.71% (based on compound yield of 1.52%), but I estimate that would only earn me about $0.05 more in a month on my estimated average monthly balance of $2,000. Not worth messing around moving the money from the core MM fund.
If I wanted to mess around scraping up $100K to open FZDXX, the yield on that is the highest at 1.81% (compound), but I estimate it would only earn about $0.15 more in a month on my average balance of about $2,000.
I keep most of my cash in a local bank savings account earning 2.50% APY through Jan 2021. I actually have another savings account at an online bank, Northern Bank Direct, also paying 2.50%. Second best is Vanguard Treasury MM at compound TEY of 2.10% (based on compound yield of 1.87%).
Kevin
If I make a calculation error, #Cruncher probably will let me know.
Re: Fidelity as a one stop shop
Your calculation would be correct if I were itemizing federal deductions and getting a full deduction of state income tax on marginal income. In this case, you calculate TEY by dividing yield by (1 - s) where s is your marginal state income tax rate, which is what you're doing.boston10 wrote: ↑Fri Oct 25, 2019 6:40 pmThese numbers seem wrong. At an 8% marginal state tax rate, TEY on a 1m Tbill at 1.75% is 1.90%. <snip>Kevin M wrote: ↑Fri Oct 25, 2019 3:12 pm At my marginal tax rates of 27% Fed and 8% State, Fed MM at 1.87% compound yield (I use compound yield to compare to bank APY), my compound TEY is 2.05%. For Treasury MM at 1.87% my compound TEY is 2.10%.
[...]
My TEY on 1m Tbill at 1.75% is 1.97%, and on 6m at 1.65% it's 1.85%, so Fed MM is better for me at this point, but of course Treasury MM is even better.
[...]
In my Fidelity brokerage that I'm using to pay bills (I only use CMA for ATM), I am using SPAXX as my core fund, which at an SEC yield of 1.55% is TEY for me of 1.66%. In that account I bought $10K face of 6-month Treasuries on 5/28 at a yield of 2.387% (TEY = 2.68%) to provide some margin for overdraft protection. When the bills mature on 11/29/2019, I'll consider rolling them.
Am I missing something, or calculating TEY incorrectly?
For most people this is no longer the case, due to the higher standard deduction and the $10K limit on SALT that are deductible on federal Schedule A. In this case, to calculate TEY you multiply yield by (1 - f) to get after-tax yield, where f is federal marginal tax rate, then divide by (1 - f - s) to get TEY.
I show the derivation of these formulas in this post: Taxable Equivalent Yield (TEY)
Kevin
If I make a calculation error, #Cruncher probably will let me know.
Re: Fidelity as a one stop shop
Correct, for 2018. For 2019 I use 56% exempt in estimating TEY, but there is some uncertainty in it. If percent of assets in USGO at the end of any quarter dropped below 50%, none of the income would be tax exempt in CA (my state), CT, and NY.
I also show the derivation for TEY for income that is partially exempt from state income tax in my TEY post.
Kevin
If I make a calculation error, #Cruncher probably will let me know.
Re: Fidelity as a one stop shop
It appears FDRXX also has USGO of about 57%, so you should also compare its TEY based on those. For me FDRXX beats out SPAXX and FDLXX, but only by two basis points, so it's hardly worth tracking very often. If I kept more (>$10k) in money markets, then I'd just go with FZDXX.Kevin M wrote: ↑Sat Oct 26, 2019 1:39 pm Because of the partial exemption from state income tax, I estimate my compound taxable-equivalent yield (TEY) on SPAXX at 1.66% (based on compound yield of 1.55%), so higher than FDRXX compound yield of 1.60%. Of course there is some uncertainty in the TEY, because I'm basing it on 2018 USGO income percent of about 56%. I care about the yield (net of ER), not the expense ratio.
Re: Fidelity as a one stop shop
I see it in the Desktop web interface under Manage Cash -> Manage Debit Card(s). Unfortunately, all my ATM debit card limits are set to $520. Purchase and cash advance limits are higher. Does anyone know how to raise the ATM limit? I tried a chat several months ago without success.heartwood wrote: ↑Sat Oct 26, 2019 1:05 pmwhere are you seeing your daily limit?bawr wrote: ↑Sat Oct 26, 2019 5:45 amFor a long time, the ATM withdrawal limit for my Fidelity CMA ATM/debit card was $1,000. Recently I noticed that it has been raised to $1,020. I suppose the extra $20 is to account for potential fees, thereby allowing you to withdraw the full $1,000 per day, under most circumstances.
Re: Fidelity as a one stop shop
I'm fairly confident that this and the formulas in your linked post are wrong. The numbers I provided assume no SALT deduction. The calculation for that is straightforward: yield divided by (1-state tax rate), so in the case of a TBill with a 1.75% yield and an 8% state tax rate, it's 1.75%/.92 = 1.902%. This is the relevant number for you.Kevin M wrote: ↑Sat Oct 26, 2019 1:50 pmYour calculation would be correct if I were itemizing federal deductions and getting a full deduction of state income tax on marginal income. In this case, you calculate TEY by dividing yield by (1 - s) where s is your marginal state income tax rate, which is what you're doing.boston10 wrote: ↑Fri Oct 25, 2019 6:40 pmThese numbers seem wrong. At an 8% marginal state tax rate, TEY on a 1m Tbill at 1.75% is 1.90%. <snip>Kevin M wrote: ↑Fri Oct 25, 2019 3:12 pm At my marginal tax rates of 27% Fed and 8% State, Fed MM at 1.87% compound yield (I use compound yield to compare to bank APY), my compound TEY is 2.05%. For Treasury MM at 1.87% my compound TEY is 2.10%.
[...]
My TEY on 1m Tbill at 1.75% is 1.97%, and on 6m at 1.65% it's 1.85%, so Fed MM is better for me at this point, but of course Treasury MM is even better.
[...]
In my Fidelity brokerage that I'm using to pay bills (I only use CMA for ATM), I am using SPAXX as my core fund, which at an SEC yield of 1.55% is TEY for me of 1.66%. In that account I bought $10K face of 6-month Treasuries on 5/28 at a yield of 2.387% (TEY = 2.68%) to provide some margin for overdraft protection. When the bills mature on 11/29/2019, I'll consider rolling them.
Am I missing something, or calculating TEY incorrectly?
For most people this is no longer the case, due to the higher standard deduction and the $10K limit on SALT that are deductible on federal Schedule A. In this case, to calculate TEY you multiply yield by (1 - f) to get after-tax yield, where f is federal marginal tax rate, then divide by (1 - f - s) to get TEY.
I show the derivation of these formulas in this post: Taxable Equivalent Yield (TEY)
Kevin
If you do take the SALT deduction then you just need a simple modification to the formula above that adjusts your state marginal tax rate for the federal tax credit. In your case, if you were at a 25% marginal federal rate and took the SALT deduction, your state marginal tax rate of 8% is reduced by 25% and becomes an effective marginal tax rate of 6%. Then you use the formula above to calculate the TBill TEY, so 1.75%/.94 = 1.86%.
There is no possible scenario where a state marginal tax rate of 8% and a TBill with a 1.75% yield has a TEY higher than 1.902%. To get to 1.97% TEY on a 1.75% TBill, you would need to have a marginal state income tax rate of over 11% and not take the SALT deduction.
EDIT: I was wrong here, because the higher yield of a non-tax exempt instrument is partially sapped away by federal tax, requiring it to be higher to get an equivalent yield to the lower-yielding tax exempt TBill. I found my error by plugging the numbers into the spreadsheet and figuring out what I'd get in after-tax interest on a $1000 investment.
I still have trouble getting to 1.97 using any federal tax bracket, though. By my calculation you'd need to be in a 28% bracket for that, but there are no federal tax brackets between 24% and 32%.
Last edited by boston10 on Sat Oct 26, 2019 3:24 pm, edited 3 times in total.
Re: Fidelity as a one stop shop
Thanks. I just checked. I'm set to $300 daily ATM limit but can raise it as high as $1504. I have a custom daily purchase limit of $1. I don't remember setting that. I can set it as high as $15000 as a custom limit or "up to available balance". I accessed the change screen following your directions above and clicking "edit" next to the current limits shown.Lyrrad wrote: ↑Sat Oct 26, 2019 2:30 pmI see it in the Desktop web interface under Manage Cash -> Manage Debit Card(s). Unfortunately, all my ATM debit card limits are set to $520. Purchase and cash advance limits are higher. Does anyone know how to raise the ATM limit? I tried a chat several months ago without success.heartwood wrote: ↑Sat Oct 26, 2019 1:05 pmwhere are you seeing your daily limit?bawr wrote: ↑Sat Oct 26, 2019 5:45 amFor a long time, the ATM withdrawal limit for my Fidelity CMA ATM/debit card was $1,000. Recently I noticed that it has been raised to $1,020. I suppose the extra $20 is to account for potential fees, thereby allowing you to withdraw the full $1,000 per day, under most circumstances.
Major Edit: My limits as reported above are for my BOA debit card, not Fidelity. My apology for my confusion.
Last edited by heartwood on Sat Oct 26, 2019 10:09 pm, edited 1 time in total.
Re: Fidelity as a one stop shop
Hmm, surprised I missed that, but you're right. Now I get these yields, sorted descending by compound TEY:rama13 wrote: ↑Sat Oct 26, 2019 2:15 pmIt appears FDRXX also has USGO of about 57%, so you should also compare its TEY based on those. For me FDRXX beats out SPAXX and FDLXX, but only by two basis points, so it's hardly worth tracking very often. If I kept more (>$10k) in money markets, then I'd just go with FZDXX.Kevin M wrote: ↑Sat Oct 26, 2019 1:39 pm Because of the partial exemption from state income tax, I estimate my compound taxable-equivalent yield (TEY) on SPAXX at 1.66% (based on compound yield of 1.55%), so higher than FDRXX compound yield of 1.60%. Of course there is some uncertainty in the TEY, because I'm basing it on 2018 USGO income percent of about 56%. I care about the yield (net of ER), not the expense ratio.
Code: Select all
Fund SEC Cmpd TEY Cmpd TEY
----- ----- ----- ----- -----
FZDXX 1.79% 1.81% 1.79% 1.81%
FDRXX 1.59% 1.60% 1.70% 1.72%
FDLXX 1.51% 1.52% 1.70% 1.71%
SPRXX 1.67% 1.68% 1.67% 1.68%
SPAXX 1.54% 1.55% 1.65% 1.66%
Thanks!
Kevin
If I make a calculation error, #Cruncher probably will let me know.
Re: Fidelity as a one stop shop
Right. It all comes out in the algebra in my TEY post. In that post I show how terms in the numerator and denominator cancel out if you deduct state income taxes, which leaves you with the simpler formula of just dividing by (1 - s), but there are no factors that cancel out like that if you don't deduct state income tax.boston10 wrote: ↑Sat Oct 26, 2019 3:08 pmI'm fairly confident that this and the formulas in your linked post are wrong. The numbers I provided assume no SALT deduction. The calculation for that is straightforward: yield divided by (1-state tax rate), so in the case of a TBill with a 1.75% yield and an 8% state tax rate, it's 1.75%/.92 = 1.902%. This is the relevant number for you.Kevin M wrote: ↑Sat Oct 26, 2019 1:50 pmYour calculation would be correct if I were itemizing federal deductions and getting a full deduction of state income tax on marginal income. In this case, you calculate TEY by dividing yield by (1 - s) where s is your marginal state income tax rate, which is what you're doing.boston10 wrote: ↑Fri Oct 25, 2019 6:40 pmThese numbers seem wrong. At an 8% marginal state tax rate, TEY on a 1m Tbill at 1.75% is 1.90%. <snip>Kevin M wrote: ↑Fri Oct 25, 2019 3:12 pm At my marginal tax rates of 27% Fed and 8% State, Fed MM at 1.87% compound yield (I use compound yield to compare to bank APY), my compound TEY is 2.05%. For Treasury MM at 1.87% my compound TEY is 2.10%.
[...]
My TEY on 1m Tbill at 1.75% is 1.97%, and on 6m at 1.65% it's 1.85%, so Fed MM is better for me at this point, but of course Treasury MM is even better.
<snip>
Am I missing something, or calculating TEY incorrectly?
For most people this is no longer the case, due to the higher standard deduction and the $10K limit on SALT that are deductible on federal Schedule A. In this case, to calculate TEY you multiply yield by (1 - f) to get after-tax yield, where f is federal marginal tax rate, then divide by (1 - f - s) to get TEY.
I show the derivation of these formulas in this post: Taxable Equivalent Yield (TEY)
Kevin
If you do take the SALT deduction then you just need a simple modification to the formula above that adjusts your state marginal tax rate for the federal tax credit. In your case, if you were at a 25% marginal federal rate and took the SALT deduction, your state marginal tax rate of 8% is reduced by 25% and becomes an effective marginal tax rate of 6%. Then you use the formula above to calculate the TBill TEY, so 1.75%/.94 = 1.86%.
There is no possible scenario where a state marginal tax rate of 8% and a TBill with a 1.75% yield has a TEY higher than 1.902%. To get to 1.97% TEY on a 1.75% TBill, you would need to have a marginal state income tax rate of over 11% and not take the SALT deduction.
EDIT: I was wrong here, because the higher yield of a non-tax exempt instrument is partially sapped away by federal tax, requiring it to be higher to get an equivalent yield to the lower-yielding tax exempt TBill. I found my error by plugging the numbers into the spreadsheet and figuring out what I'd get in after-tax interest on a $1000 investment.
Basically, you calculate after-tax yield, then divide by (1 - total marginal tax rate) to get TEY.
You don't use tax brackets, you use marginal tax rates. My fed marginal tax rate is 27%, which is 12% (bracket) plus 15% as each marginal dollar of ordinary income (e.g., interest income) pushes an extra dollar of QD/LTCG from 0% to 15% tax rate. You also need to consider any phase-outs or phase-ins of deductions, credits, etc., as well as things like NIIT.
Kevin
If I make a calculation error, #Cruncher probably will let me know.
Re: Fidelity as a one stop shop
This thread got me thinking if I should open accounts at Fidelity. I currently use Schwab for my checking accounts, bill pay, and T bills that I buy at auction as part of my emergency fund / bond allocation. Only time I use my Schwab debit card is to pull out cash every now and then and to pull out cash when I travel internationally (few times a year). All of my other accounts are with Vanguard.
Reasons I could see for switching.
1. Auto repurchase T bills when they expire.
2. Have another debit card to use at ATMs overseas (Although to be honest, I'd probably end up moving everything to Fidelity if I liked it better).
3. Better money market rate on the cash sitting in my "savings" account. Not more than 3k so this is really splitting hairs.
4. Opportunity to try Fidelity which I haven't used in the past.
I was also trying to get some clarity if the 1% FTF applied to ATM cash withdrawals. Don't care about the 1% fee for other transactions since I have CC I'd use instead.
Reasons I could see for switching.
1. Auto repurchase T bills when they expire.
2. Have another debit card to use at ATMs overseas (Although to be honest, I'd probably end up moving everything to Fidelity if I liked it better).
3. Better money market rate on the cash sitting in my "savings" account. Not more than 3k so this is really splitting hairs.
4. Opportunity to try Fidelity which I haven't used in the past.
I was also trying to get some clarity if the 1% FTF applied to ATM cash withdrawals. Don't care about the 1% fee for other transactions since I have CC I'd use instead.
- indexfundfan
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Re: Fidelity as a one stop shop
No FTF if the Fidelity debit card is used for ATM cash withdrawals. The 1% FTF applies only if you use the card at a POS terminal -- but you are definitely better off using a credit card for that.
My signature has been deleted.
Re: Fidelity as a one stop shop
This is interesting. I don't have the ability to edit the debit card's limits. I can only view them. Perhaps this is a new feature that has been made available to only a subset of Fidelity's customers.heartwood wrote: ↑Sat Oct 26, 2019 3:19 pmThanks. I just checked. I'm set to $300 daily ATM limit but can raise it as high as $1504. I have a custom daily purchase limit of $1. I don't remember setting that. I can set it as high as $15000 as a custom limit or "up to available balance". I accessed the change screen following your directions above and clicking "edit" next to the current limits shown.Lyrrad wrote: ↑Sat Oct 26, 2019 2:30 pmI see it in the Desktop web interface under Manage Cash -> Manage Debit Card(s). Unfortunately, all my ATM debit card limits are set to $520. Purchase and cash advance limits are higher. Does anyone know how to raise the ATM limit? I tried a chat several months ago without success.heartwood wrote: ↑Sat Oct 26, 2019 1:05 pmwhere are you seeing your daily limit?bawr wrote: ↑Sat Oct 26, 2019 5:45 amFor a long time, the ATM withdrawal limit for my Fidelity CMA ATM/debit card was $1,000. Recently I noticed that it has been raised to $1,020. I suppose the extra $20 is to account for potential fees, thereby allowing you to withdraw the full $1,000 per day, under most circumstances.
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Re: Fidelity as a one stop shop
How can you change it? Mine is $1,020.heartwood wrote: ↑Sat Oct 26, 2019 3:19 pmThanks. I just checked. I'm set to $300 daily ATM limit but can raise it as high as $1504. I have a custom daily purchase limit of $1. I don't remember setting that. I can set it as high as $15000 as a custom limit or "up to available balance". I accessed the change screen following your directions above and clicking "edit" next to the current limits shown.Lyrrad wrote: ↑Sat Oct 26, 2019 2:30 pmI see it in the Desktop web interface under Manage Cash -> Manage Debit Card(s). Unfortunately, all my ATM debit card limits are set to $520. Purchase and cash advance limits are higher. Does anyone know how to raise the ATM limit? I tried a chat several months ago without success.heartwood wrote: ↑Sat Oct 26, 2019 1:05 pmwhere are you seeing your daily limit?bawr wrote: ↑Sat Oct 26, 2019 5:45 amFor a long time, the ATM withdrawal limit for my Fidelity CMA ATM/debit card was $1,000. Recently I noticed that it has been raised to $1,020. I suppose the extra $20 is to account for potential fees, thereby allowing you to withdraw the full $1,000 per day, under most circumstances.
As for the person whose limit is $520, is it the CMA or brokerage account? And what level customer are you? My is CMA and I am a Private Client. Maybe it's higher for PC than regular customers?
Or were you talking about Schwab? I am talking about Fidelity above.
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Re: Fidelity as a one stop shop
I hadn't realized SPAXX had so much state tax-free income; I'll stop paying too much attention to getting funds swapped to SPRXX.Kevin M wrote: ↑Sat Oct 26, 2019 1:39 pmYou're welcome! Glad you find it useful.bck63 wrote: ↑Fri Oct 25, 2019 3:29 pmKevin thanks for this whole post and I am going to read it in depth.Kevin M wrote: ↑Fri Oct 25, 2019 3:12 pm In my Fidelity brokerage that I'm using to pay bills (I only use CMA for ATM), I am using SPAXX as my core fund, which at an SEC yield of 1.55% is TEY for me of 1.66%. In that account I bought $10K face of 6-month Treasuries on 5/28 at a yield of 2.387% (TEY = 2.68%) to provide some margin for overdraft protection. When the bills mature on 11/29/2019, I'll consider rolling them.
Kevin
Because of the partial exemption from state income tax, I estimate my compound taxable-equivalent yield (TEY) on SPAXX at 1.66% (based on compound yield of 1.55%), so higher than FDRXX compound yield of 1.60%. Of course there is some uncertainty in the TEY, because I'm basing it on 2018 USGO income percent of about 56%. I care about the yield (net of ER), not the expense ratio.bck63 wrote: ↑Fri Oct 25, 2019 3:29 pm But I wanted to mention, consider using FDRXX in your CMA (can't use it as core but can buy it separately). As near as I can tell it is absolutely identical to SPAXX, but the ER is 0.38%, as opposed to 0.42%. For the life of me I don't know why. My only guess is that I read somewhere that FDRXX is the sweep account for Fidelity IRAs. I don't know if that is accurate but maybe that has something to do with it.
The yield difference is only 6 bp (FDRXX is 1.61%) but I use FDRXX on principle because it's cheaper.
SPRXX has a slightly higher compound yield than SPAXX TEY at 1.68%; due to the uncertainty in SPAXX, I might be better of using this, but the difference in estimated yields is small, and the amount I keep in the account is small, so no big deal.
I could earn a bit more on non-core MM fund FDLXX (Treasury only), at compound TEY of 1.71% (based on compound yield of 1.52%), but I estimate that would only earn me about $0.05 more in a month on my estimated average monthly balance of $2,000. Not worth messing around moving the money from the core MM fund.
If I wanted to mess around scraping up $100K to open FZDXX, the yield on that is the highest at 1.81% (compound), but I estimate it would only earn about $0.15 more in a month on my average balance of about $2,000.
I keep most of my cash in a local bank savings account earning 2.50% APY through Jan 2021. I actually have another savings account at an online bank, Northern Bank Direct, also paying 2.50%. Second best is Vanguard Treasury MM at compound TEY of 2.10% (based on compound yield of 1.87%).
Kevin
Is this all handled automatically on tax-forms or must someone manually perform these deductions?
Re: Fidelity as a one stop shop
Mrbill and bawr and all others.MisterBill wrote: ↑Sat Oct 26, 2019 9:12 pmHow can you change it? Mine is $1,020.heartwood wrote: ↑Sat Oct 26, 2019 3:19 pmThanks. I just checked. I'm set to $300 daily ATM limit but can raise it as high as $1504. I have a custom daily purchase limit of $1. I don't remember setting that. I can set it as high as $15000 as a custom limit or "up to available balance". I accessed the change screen following your directions above and clicking "edit" next to the current limits shown.Lyrrad wrote: ↑Sat Oct 26, 2019 2:30 pmI see it in the Desktop web interface under Manage Cash -> Manage Debit Card(s). Unfortunately, all my ATM debit card limits are set to $520. Purchase and cash advance limits are higher. Does anyone know how to raise the ATM limit? I tried a chat several months ago without success.heartwood wrote: ↑Sat Oct 26, 2019 1:05 pmwhere are you seeing your daily limit?bawr wrote: ↑Sat Oct 26, 2019 5:45 am
For a long time, the ATM withdrawal limit for my Fidelity CMA ATM/debit card was $1,000. Recently I noticed that it has been raised to $1,020. I suppose the extra $20 is to account for potential fees, thereby allowing you to withdraw the full $1,000 per day, under most circumstances.
As for the person whose limit is $520, is it the CMA or brokerage account? And what level customer are you? My is CMA and I am a Private Client. Maybe it's higher for PC than regular customers?
Or were you talking about Schwab? I am talking about Fidelity above.
DOH! I apologize. Clearly the thread is Fidelity based. I somehow checked my BOA debit card as reported above.
I cannot edit my Fidelity debit card. My ATM/purchases/cash advance are currently $520/$10000/$2500. I am very uncomfortable with those last two limits. I will investigate with Fidelity next week.
Again, my apology for my mistake. I will edit my original post.
Re: Fidelity as a one stop shop
It’s Fidelity. I have the same limit for CMA and Brokerage, but I don’t have enough assets at Fidelity for Private Client.MisterBill wrote: ↑Sat Oct 26, 2019 9:12 pm As for the person whose limit is $520, is it the CMA or brokerage account? And what level customer are you? My is CMA and I am a Private Client. Maybe it's higher for PC than regular customers?
Or were you talking about Schwab? I am talking about Fidelity above.
Re: Fidelity as a one stop shop
For me, only two basis points difference, so wouldn't pay any attention to getting funds swapped to SPRXX.MotoTrojan wrote: ↑Sat Oct 26, 2019 9:43 pmI hadn't realized SPAXX had so much state tax-free income; I'll stop paying too much attention to getting funds swapped to SPRXX.Kevin M wrote: ↑Sat Oct 26, 2019 1:39 pm Because of the partial exemption from state income tax, I estimate my compound taxable-equivalent yield (TEY) on SPAXX at 1.66% (based on compound yield of 1.55%), so higher than FDRXX compound yield of 1.60%. Of course there is some uncertainty in the TEY, because I'm basing it on 2018 USGO income percent of about 56%. I care about the yield (net of ER), not the expense ratio.
<snip>
You need to calculate the percentage of income exempt from state tax using the "YYYY Percentage of Income from U.S. Government Securities" that Fidelity provides. Here is the Fidelity form for 2018.MotoTrojan wrote: ↑Sat Oct 26, 2019 9:43 pm Is this all handled automatically on tax-forms or must someone manually perform these deductions?
Tax software typically asks for the percent or amount exempt from state income tax after you enter the dividend income into the tax software 1099-DIV form for the payer, and check a box indicating that some of the income is from US Treasury obligations.
Kevin
If I make a calculation error, #Cruncher probably will let me know.
Re: Fidelity as a one stop shop
Thinks for the feedback. Coming from Schwab, I'm guessing you didn't find any similar options with them? I saw there was a "cash management" option at Schwab mentioned in the Fidelity one stop shop wiki article but I'm guessing their brokerage and checking accounts can't be linked for overdraft protection like at Fidelity.
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Re: Fidelity as a one stop shop
I believe this is actually the default, but the trick is that Schwab doesn't auto-liquidate money market funds to fulfill cash demands like Fidelity does, so you would be limited to their terrible sweep rates if you wanted to use a brokerage account as your cash backup. You'd be better off (though not that much better off) opening a savings account with them and using that to provide overdraft protection--or, in fact, just stashing the money in your checking account to begin with.skyghost wrote: ↑Sun Oct 27, 2019 6:33 pm Thinks for the feedback. Coming from Schwab, I'm guessing you didn't find any similar options with them? I saw there was a "cash management" option at Schwab mentioned in the Fidelity one stop shop wiki article but I'm guessing their brokerage and checking accounts can't be linked for overdraft protection like at Fidelity.
Re: Fidelity as a one stop shop
Looks like there's a new website for managing debit cards off of the cash manager section of the site (fidelitydebitcards.com), I'm able to view ATM and debit limits but not modify them.
Re: Fidelity as a one stop shop
Thanks for the heads up.
It's obvious, but this page is accessed by clicking "Manage Debit Card(s)" in the "Manage Money & Payments" screen. My CMA ATM daily limit in is $520, and my daily purchase limit is $10K.
Kevin
If I make a calculation error, #Cruncher probably will let me know.
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Re: Fidelity as a one stop shop
The correct site name is fidelitydebitcard.com (singular), not fidelitydebitcards.com (plural).
Re: Fidelity as a one stop shop
To make it more obvious the full path is Accounts & Trade > Cash Management > Manage Debit card(s) (button). Although it redirects you to the above URL, I feel more comfortable going from the Fidelity website than typing in a foreign (to me) URL.
Re: Fidelity as a one stop shop
The limit on my account seems to be $1020 for me and $1020 for my wife's card. I took out cash today and it lowered the remaining amount on my daily limit, but my wife's remains at $1020. So it seems that we could jointly take out $2040 per day if needed.
“There may be times when we are powerless to prevent injustice, but there must never be a time when we fail to protest.” - Elie Wiesel
Re: Fidelity as a one stop shop
For a CMA or a brokerage account? Fidelity premium services?
Re: Fidelity as a one stop shop
I have both a CMA and a brokerage and they both have a limit of $1020. I am a Private Wealth client (or whatever it's called) because I have sufficient funds at Fidelity.
The CMA has a $0 balance and I only use the brokerage account because I realized I was reimbursed for all ATM fees internationally even in the brokerage account. This way I don't need to maintain multiple accounts in order to get the higher interest rate. I will likely close the CMA account eventually.
“There may be times when we are powerless to prevent injustice, but there must never be a time when we fail to protest.” - Elie Wiesel
Re: Fidelity as a one stop shop
They added an option to lock (temporary disable) your debit card in Manage Debit Card(s).
I hope they add it to the app soon.
I hope they add it to the app soon.
Re: Fidelity as a one stop shop
I think that locking the card will also disable the ATM function. I would like to be able to disable just the debit function.
--vtMaps
"Truly, whoever can make you believe absurdities can make you commit atrocities" --Voltaire, as translated by Norman Lewis Torrey
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Re: Fidelity as a one stop shop
I share your skepticism about links found online but, once you navigate there and can see the URL for yourself, you can be confident that it is, in fact, a Fidelity-hosted web page.
That said, I can't see a need to visit that page very often. It's probably easier to remember how to navigate there from within the Fidelity site, on the rare occasions it's necessary, rather than trying to remember the direct URL.
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Re: Fidelity as a one stop shop
Does it show anywhere on the web page whether your ATM fees will be reimbursed? This is for the investment account, not the CMA.
My signature has been deleted.
Re: Fidelity as a one stop shop
I don’t see that anywhere. You can always just test it out and see what happens. My ATM fees are mostly reimbursed within a few days or a week.indexfundfan wrote: ↑Thu Nov 07, 2019 2:24 pm Does it show anywhere on the web page whether your ATM fees will be reimbursed? This is for the investment account, not the CMA.
“There may be times when we are powerless to prevent injustice, but there must never be a time when we fail to protest.” - Elie Wiesel
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Re: Fidelity as a one stop shop
I don't have the debit card for the investment account (IA). I only have the card for the CMA. Just wondering if it is worthwhile to get the card for the IA. I currently keep the CMA balance zero.bostondan wrote: ↑Thu Nov 07, 2019 2:25 pmI don’t see that anywhere. You can always just test it out and see what happens. My ATM fees are mostly reimbursed within a few days or a week.indexfundfan wrote: ↑Thu Nov 07, 2019 2:24 pm Does it show anywhere on the web page whether your ATM fees will be reimbursed? This is for the investment account, not the CMA.
My signature has been deleted.
Re: Fidelity as a one stop shop
There’s no downside to getting the card. You can always throw it away (after shredding it). Or call Fidelity and ask if you qualify for free ATMs. They were able to tell me that I am just now. Total call time was 4 minutes.indexfundfan wrote: ↑Thu Nov 07, 2019 2:32 pmI don't have the debit card for the investment account (IA). I only have the card for the CMA. Just wondering if it is worthwhile to get the card for the IA. I currently keep the CMA balance zero.bostondan wrote: ↑Thu Nov 07, 2019 2:25 pmI don’t see that anywhere. You can always just test it out and see what happens. My ATM fees are mostly reimbursed within a few days or a week.indexfundfan wrote: ↑Thu Nov 07, 2019 2:24 pm Does it show anywhere on the web page whether your ATM fees will be reimbursed? This is for the investment account, not the CMA.
“There may be times when we are powerless to prevent injustice, but there must never be a time when we fail to protest.” - Elie Wiesel
Re: Fidelity as a one stop shop
I don't want a card for the brokerage account, even though I qualify for ATM fee rembursements. It's easy to transfer something from brokerage to CMA for ATM purposes. Rather than keep $0 in CMA, I keep enough in to cover unexpected ATM withdrawal needs, like $200-$300 or so.indexfundfan wrote: ↑Thu Nov 07, 2019 2:32 pmI don't have the debit card for the investment account (IA). I only have the card for the CMA. Just wondering if it is worthwhile to get the card for the IA. I currently keep the CMA balance zero.bostondan wrote: ↑Thu Nov 07, 2019 2:25 pmI don’t see that anywhere. You can always just test it out and see what happens. My ATM fees are mostly reimbursed within a few days or a week.indexfundfan wrote: ↑Thu Nov 07, 2019 2:24 pm Does it show anywhere on the web page whether your ATM fees will be reimbursed? This is for the investment account, not the CMA.
Kevin
If I make a calculation error, #Cruncher probably will let me know.
Re: Fidelity as a one stop shop
I agree with Kevin and do the same thing. I've used my CMA debit card in Europe and works fine, I only use it for ATM withdrawal never purchases.Kevin M wrote: ↑Thu Nov 07, 2019 5:29 pmI don't want a card for the brokerage account, even though I qualify for ATM fee rembursements. It's easy to transfer something from brokerage to CMA for ATM purposes. Rather than keep $0 in CMA, I keep enough in to cover unexpected ATM withdrawal needs, like $200-$300 or so.indexfundfan wrote: ↑Thu Nov 07, 2019 2:32 pmI don't have the debit card for the investment account (IA). I only have the card for the CMA. Just wondering if it is worthwhile to get the card for the IA. I currently keep the CMA balance zero.bostondan wrote: ↑Thu Nov 07, 2019 2:25 pmI don’t see that anywhere. You can always just test it out and see what happens. My ATM fees are mostly reimbursed within a few days or a week.indexfundfan wrote: ↑Thu Nov 07, 2019 2:24 pm Does it show anywhere on the web page whether your ATM fees will be reimbursed? This is for the investment account, not the CMA.
Kevin
Bogleheads Wiki: https://www.bogleheads.org/wiki/Main_Page
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Re: Fidelity as a one stop shop
I would like to reduce one account if I can. As it is, I'm using the investment account purely for checking. The CMA is delegated for ATM usage only, and this becomes redundant if the ATM fees are reimbursed in the investment account.radiowave wrote: ↑Thu Nov 07, 2019 5:54 pmI agree with Kevin and do the same thing. I've used my CMA debit card in Europe and works fine, I only use it for ATM withdrawal never purchases.Kevin M wrote: ↑Thu Nov 07, 2019 5:29 pmI don't want a card for the brokerage account, even though I qualify for ATM fee rembursements. It's easy to transfer something from brokerage to CMA for ATM purposes. Rather than keep $0 in CMA, I keep enough in to cover unexpected ATM withdrawal needs, like $200-$300 or so.indexfundfan wrote: ↑Thu Nov 07, 2019 2:32 pmI don't have the debit card for the investment account (IA). I only have the card for the CMA. Just wondering if it is worthwhile to get the card for the IA. I currently keep the CMA balance zero.bostondan wrote: ↑Thu Nov 07, 2019 2:25 pmI don’t see that anywhere. You can always just test it out and see what happens. My ATM fees are mostly reimbursed within a few days or a week.indexfundfan wrote: ↑Thu Nov 07, 2019 2:24 pm Does it show anywhere on the web page whether your ATM fees will be reimbursed? This is for the investment account, not the CMA.
Kevin
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Re: Fidelity as a one stop shop
What's the big deal about having two accounts? Takes like a minute to log on and move money from one account to the other.indexfundfan wrote: ↑Thu Nov 07, 2019 7:49 pmI would like to reduce one account if I can. As it is, I'm using the investment account purely for checking. The CMA is delegated for ATM usage only, and this becomes redundant if the ATM fees are reimbursed in the investment account.radiowave wrote: ↑Thu Nov 07, 2019 5:54 pmI agree with Kevin and do the same thing. I've used my CMA debit card in Europe and works fine, I only use it for ATM withdrawal never purchases.Kevin M wrote: ↑Thu Nov 07, 2019 5:29 pmI don't want a card for the brokerage account, even though I qualify for ATM fee rembursements. It's easy to transfer something from brokerage to CMA for ATM purposes. Rather than keep $0 in CMA, I keep enough in to cover unexpected ATM withdrawal needs, like $200-$300 or so.indexfundfan wrote: ↑Thu Nov 07, 2019 2:32 pm I don't have the debit card for the investment account (IA). I only have the card for the CMA. Just wondering if it is worthwhile to get the card for the IA. I currently keep the CMA balance zero.
It's probably excessively paranoid, but my thinking is to reduce fraud exposure by not having an ATM/debit card for the account that has more money in it.
I actually have three taxable accounts: investment brokerage, cash management brokerage, and CMA. I also have traditional and Roth IRAs.
Anyway, I think you need to be private client to not get charged the ATM fees on a brokerage account. You would have had to have a fairly large amount at Fidelity at some point to get this status--I had over $1M at one point. My Fidelity balance dropped a lot after I got private client status (transferred a lot out of my IRA to Vanguard and other placesk), but they never revoked it.
Kevin
If I make a calculation error, #Cruncher probably will let me know.
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Re: Fidelity as a one stop shop
I have 3 accounts -- 1. CMA, 2. Investment account used as checking, 3. Investment account holding assets in trust.Kevin M wrote: ↑Thu Nov 07, 2019 8:35 pm What's the big deal about having two accounts? Takes like a minute to log on and move money from one account to the other.
It's probably excessively paranoid, but my thinking is to reduce fraud exposure by not having an ATM/debit card for the account that has more money in it.
I actually have three taxable accounts: investment brokerage, cash management brokerage, and CMA. I also have traditional and Roth IRAs.
Anyway, I think you need to be private client to not get charged the ATM fees on a brokerage account. You would have had to have a fairly large amount at Fidelity at some point to get this status--I had over $1M at one point. My Fidelity balance dropped a lot after I got private client status (transferred a lot out of my IRA to Vanguard and other placesk), but they never revoked it.
Kevin
Account 2 is for my daily usage. Account 1 is just for ATM. It's not a big deal to have the CMA, but if it can be done with just account 2, I don't see any reason to have account 1. Occam's razor.
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Re: Fidelity as a one stop shop
I have just opened the CMA and brokerage with Fidelity. My IRA is still at Vanguard and I'm on the fence about transferring it to Fidelity where it would decrease the the fees by 4 basis points. It would make my life easier, but I like Vanguard as a company and I don't want to sever all ties with them. My 401k is through T. Rowe Price. Have you guys been dropping Vanguard in favor of the Fidelity solution?
Re: Fidelity as a one stop shop
I went throught the same thought process about a year ago...I was reluctant to sever all ties with Vanguard because I feel a sense of loyalty for everything John Bogle and Vanguard have done over the years to help the average investor and push the industry to lower costs, I know that if it were not for Vanguard we would not have a variety of options of low cost or zero cost funds at Fidelity and Schwab and other places. The thing that put me over the edge was when Fidelity started offering HSA accounts, then I decided to transfer my IRAs from Vanguard to Fidelity and consolidate them with my HSA at Fidelity. I also have accounts at Schwab, and I have been happy with Fidelity and Schwab so far. I will admit to having a feeling of being disloyal to Vanguard for transferring my accounts from them after everything they've done, but at the end of the day we are in a free market and if other providers are providing the same or better service then I am entitled to choose the best provider for me.jumbopapa wrote: ↑Fri Nov 08, 2019 12:54 pm I have just opened the CMA and brokerage with Fidelity. My IRA is still at Vanguard and I'm on the fence about transferring it to Fidelity where it would decrease the the fees by 4 basis points. It would make my life easier, but I like Vanguard as a company and I don't want to sever all ties with them. My 401k is through T. Rowe Price. Have you guys been dropping Vanguard in favor of the Fidelity solution?
Re: Fidelity as a one stop shop
Thank you. I think I should just move everything over and be done with it. How did you do go about doing the transfer? I understand I can leave it in VTSAX and transition to a Fidelity fund once the transfer is complete?mptfan wrote: ↑Fri Nov 08, 2019 1:19 pm I went throught the same thought process about a year ago...I was reluctant to sever all ties with Vanguard because I feel a sense of loyalty for everything John Bogle and Vanguard have done over the years to help the average investor and push the industry to lower costs, I know that if it were not for Vanguard we would not have a variety of options of low cost or zero cost funds at Fidelity and Schwab and other places. The thing that put me over the edge was when Fidelity started offering HSA accounts, then I decided to transfer my IRAs from Vanguard to Fidelity and consolidate them with my HSA at Fidelity. I also have accounts at Schwab, and I have been happy with Fidelity and Schwab so far. I will admit to having a feeling of being disloyal to Vanguard for transferring my accounts from them after everything they've done, but at the end of the day we are in a free market and if other providers are providing the same or better service then I am entitled to choose the best provider for me.
Re: Fidelity as a one stop shop
As I recall, the first step is to open an account at Fidelity, I did it online, it was very easy. I think you are asked if you are transferring an account during the online process and you just answer the questions. You should have an electronic copy of a recent statement for each account that you are transferring because I think they ask you to upload that. Some funds can be transferred "in kind" and some cannot, in which case you have to liquidate to cash before the transfer. I vaguely recall that Admiral class funds cannot be transferred in kind, but don't quote me on that.
Re: Fidelity as a one stop shop
Are your automatic monthly transfers to CORE or to the MMA within the CMA?boston10 wrote: ↑Fri Aug 23, 2019 5:57 am To provide an updated strategy (new parts bolded, old parts struck through):
- ...
- CMA (not linked/no overdraft) for ATM and check use, and for any use case where my account number would be exposed to a third party (for example, bill pay where they are sending a paper check, or "pull" ACH transactions). These transactions are few and far between for me (zero most months) generally predictable and only happen a few times a month, so I set up several automatic monthly transfers from my brokerage to my CMA to cover them before they're pulled and keep it manually topped off at ~$500 in SPRXX in this account. So everything stays in a MM.
- ...
- ...
If it's to the MMA, can you (or anyone else) confirm that you have had a "pull" ACH, initiated from an external-to-Fidelity account, successfully processed with the CORE at $0 but with sufficient funds in the MMA within the CMA?