Moving funds from Fidelity to a bank?

[IsabellaH555]

I would like to move the funds (just over $1M) in my Fidelity account to a bank, as i am done with investing and would like a secure place for my retirement funds. Since most banks are FIDC insured this seems like the safest thing to do now at my age (86) to protect my children’s inheritance. And hopefully gain some interest on my savings.

Can someone explain how best to do this?

Thanks,
Isabella

[20cm]

You will not get FDIC coverage on the full $1M in a single bank account.

If you want to stay in cash, your simplest safe option would be to keep your Fidelity account and buy new issue brokered CDs which will be covered by FDIC as long as you stay at or below $250,000 with any single issuing bank.

https://fixedincome.fidelity.com/ftgw/f ... -issue|all

[anon_investor]

You will not get FDIC coverage on the full $1M in a single bank account.

If you want to stay in cash, your simplest safe option would be to keep your Fidelity account and buy new issue brokered CDs which will be covered by FDIC as long as you stay at or below $250,000 with any single issuing bank.

https://fixedincome.fidelity.com/ftgw/f ... -issue|all

+1 to this strategy.

[livesoft]

I think it would not be a bad idea to make an appointment with your local Fidelity office, go there, and tell them what you have told us here. I think they would be very helpful.

If you are worried they will tell you something unhelpful, then come back to this thread and tell us what they told you, so that we can double-check it for you.

[Tycoon]

Fidelity keeps money in banks. Every month they deposit money into our account from the banks they use.

[Wiggums]

I would like to move the funds (just over $1M) in my Fidelity account to a bank, as i am done with investing and would like a secure place for my retirement funds. Since most banks are FIDC insured this seems like the safest thing to do now at my age (86) to protect my children’s inheritance. And hopefully gain some interest on my savings.

Can someone explain how best to do this?

Thanks,
Isabella

Fidelity has a cash management option which spreads the money across different banks so that each deposit is fully insured.

“The FDIC Deposit Sweep Program systematically allocates your cash across multiple program banks to ensure your money is protected. For example, a deposit of $500,000 to an individually registered Fidelity® Cash Management Account will be spread across three program banks: $245,000 will be swept to the first two program banks each, and $10,000 is swept into a third program bank. Sweeping only $245,000 rather than the respective FDIC coverage limit of $250,000 helps to ensure that any accrued (unpaid) interest is also protected by FDIC Deposit Insurance Coverage. Under this example, a subsequent deposit of an additional $50,000 will be automatically swept into the third program bank.”

Source FAQs: https://www.fidelity.com/cash-managemen ... t/overview