Cash at Fidelity

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NYCaviator
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Re: Cash at Fidelity

Post by NYCaviator »

mamster wrote: Mon Oct 16, 2023 1:13 pm 1. Someone is always making more interest than me. I'm never going to be number one.
2. When thinking about a delta in interest, compare it to the zero rate.
3. think of all the other things you waste money on every month and compare that to the negligible difference between 4.98 and 5.28 in interest (unless we're talking truly massive sums of cash). If you've got $100,000 in the MMF, you're talking about a difference of about $27/month. I'd take the convenience of having my money in one place over that small amount. Just cut out a single restaurant meal and you've more than made up that difference. Chasing small differences in yields is a fool's errand.
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Kevin M
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Re: Cash at Fidelity

Post by Kevin M »

protagonist wrote: Mon Jun 10, 2024 5:01 pm
LilyFleur wrote: Mon Oct 16, 2023 12:22 pm FZDXX at Fidelity. 5.17%.
$100,000 minimum
An important point:
You need $100K to GET INTO FZDXX.
Once in, it does not matter how much money you keep there.
I have had my FZDXX holdings down to a few thousand $....never had a problem...and I have been in FZDXX for many years. I have never held anywhere near $100K in FZDXX for very long, especially since TIPS became desirable in mid-2022.
Right. I've switched over to FDLXX for my main "checking" account, but still hold a few bucks in FZDXX in case the after-tax yield situation changes.

Note that the FZDXX minimum is only $10K in an IRA.
If I make a calculation error, #Cruncher probably will let me know.
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anon_investor
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Re: Cash at Fidelity

Post by anon_investor »

Kevin M wrote: Mon Jun 10, 2024 6:50 pm
protagonist wrote: Mon Jun 10, 2024 5:01 pm
LilyFleur wrote: Mon Oct 16, 2023 12:22 pm FZDXX at Fidelity. 5.17%.
$100,000 minimum
An important point:
You need $100K to GET INTO FZDXX.
Once in, it does not matter how much money you keep there.
I have had my FZDXX holdings down to a few thousand $....never had a problem...and I have been in FZDXX for many years. I have never held anywhere near $100K in FZDXX for very long, especially since TIPS became desirable in mid-2022.
Right. I've switched over to FDLXX for my main "checking" account, but still hold a few bucks in FZDXX in case the after-tax yield situation changes.

Note that the FZDXX minimum is only $10K in an IRA.
Yep, most of my cash in my Fido CMA (used as my checking) is in FDLXX but I keep a little in FZDXX, FZCXX and FZEXX so I have access if the yield in one of those becomes more advantagous for me.
protagonist
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Re: Cash at Fidelity

Post by protagonist »

anon_investor wrote: Mon Jun 10, 2024 6:54 pm
Kevin M wrote: Mon Jun 10, 2024 6:50 pm
protagonist wrote: Mon Jun 10, 2024 5:01 pm
LilyFleur wrote: Mon Oct 16, 2023 12:22 pm FZDXX at Fidelity. 5.17%.
$100,000 minimum
An important point:
You need $100K to GET INTO FZDXX.
Once in, it does not matter how much money you keep there.
I have had my FZDXX holdings down to a few thousand $....never had a problem...and I have been in FZDXX for many years. I have never held anywhere near $100K in FZDXX for very long, especially since TIPS became desirable in mid-2022.
Right. I've switched over to FDLXX for my main "checking" account, but still hold a few bucks in FZDXX in case the after-tax yield situation changes.

Note that the FZDXX minimum is only $10K in an IRA.
Yep, most of my cash in my Fido CMA (used as my checking) is in FDLXX but I keep a little in FZDXX, FZCXX and FZEXX so I have access if the yield in one of those becomes more advantagous for me.
Kevin and anon, why do you switch to FDLXX for your main checking acct., instead of just keeping it in FZDXX, which has a higher yield (5.13% vs. 4.93%)? Sure, the yield difference is pretty trivial, but what is the advantage of FDLXX?

I just use FZDXX as my checking acct, as well as my emergency fund. When money comes in, it automatically goes to SPAXX, and whenever I notice money there (like when my SS payment arrives) I just transfer it to FZDXX.

Am I missing something? Is FDLXX more convenient? Is FDLXX state tax exempt? If so, that would be a good reason for some I suppose...I haven't considered it since my state residence is FL.
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anon_investor
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Re: Cash at Fidelity

Post by anon_investor »

protagonist wrote: Mon Jun 10, 2024 9:42 pm
anon_investor wrote: Mon Jun 10, 2024 6:54 pm
Kevin M wrote: Mon Jun 10, 2024 6:50 pm
protagonist wrote: Mon Jun 10, 2024 5:01 pm
LilyFleur wrote: Mon Oct 16, 2023 12:22 pm FZDXX at Fidelity. 5.17%.
$100,000 minimum
An important point:
You need $100K to GET INTO FZDXX.
Once in, it does not matter how much money you keep there.
I have had my FZDXX holdings down to a few thousand $....never had a problem...and I have been in FZDXX for many years. I have never held anywhere near $100K in FZDXX for very long, especially since TIPS became desirable in mid-2022.
Right. I've switched over to FDLXX for my main "checking" account, but still hold a few bucks in FZDXX in case the after-tax yield situation changes.

Note that the FZDXX minimum is only $10K in an IRA.
Yep, most of my cash in my Fido CMA (used as my checking) is in FDLXX but I keep a little in FZDXX, FZCXX and FZEXX so I have access if the yield in one of those becomes more advantagous for me.
Kevin and anon, why do you switch to FDLXX for your main checking acct., instead of just keeping it in FZDXX, which has a higher yield (5.13% vs. 4.93%)? Sure, the yield difference is pretty trivial, but what is the advantage of FDLXX?

I just use FZDXX as my checking acct, as well as my emergency fund. When money comes in, it automatically goes to SPAXX, and whenever I notice money there (like when my SS payment arrives) I just transfer it to FZDXX.

Am I missing something? Is FDLXX more convenient? Is FDLXX state tax exempt? If so, that would be a good reason for some I suppose...I haven't considered it since my state residence is FL.
FDLXX is the Fidelity Treasury Only Money Market Fund, usually it is somewhere around 92-95% exempt from state/local income taxes. So if you are subject to state/local income taxes like me, then the aftertax yield is more than FZDXX. Since you are in Florida and not subject to state/local taxes then FZDXX will yield more for you.
protagonist
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Re: Cash at Fidelity

Post by protagonist »

anon_investor wrote: Mon Jun 10, 2024 10:02 pm
protagonist wrote: Mon Jun 10, 2024 9:42 pm
anon_investor wrote: Mon Jun 10, 2024 6:54 pm
Kevin M wrote: Mon Jun 10, 2024 6:50 pm
protagonist wrote: Mon Jun 10, 2024 5:01 pm
An important point:
You need $100K to GET INTO FZDXX.
Once in, it does not matter how much money you keep there.
I have had my FZDXX holdings down to a few thousand $....never had a problem...and I have been in FZDXX for many years. I have never held anywhere near $100K in FZDXX for very long, especially since TIPS became desirable in mid-2022.
Right. I've switched over to FDLXX for my main "checking" account, but still hold a few bucks in FZDXX in case the after-tax yield situation changes.

Note that the FZDXX minimum is only $10K in an IRA.
Yep, most of my cash in my Fido CMA (used as my checking) is in FDLXX but I keep a little in FZDXX, FZCXX and FZEXX so I have access if the yield in one of those becomes more advantagous for me.
Kevin and anon, why do you switch to FDLXX for your main checking acct., instead of just keeping it in FZDXX, which has a higher yield (5.13% vs. 4.93%)? Sure, the yield difference is pretty trivial, but what is the advantage of FDLXX?

I just use FZDXX as my checking acct, as well as my emergency fund. When money comes in, it automatically goes to SPAXX, and whenever I notice money there (like when my SS payment arrives) I just transfer it to FZDXX.

Am I missing something? Is FDLXX more convenient? Is FDLXX state tax exempt? If so, that would be a good reason for some I suppose...I haven't considered it since my state residence is FL.
FDLXX is the Fidelity Treasury Only Money Market Fund, usually it is somewhere around 92-95% exempt from state/local income taxes. So if you are subject to state/local income taxes like me, then the aftertax yield is more than FZDXX. Since you are in Florida and not subject to state/local taxes then FZDXX will yield more for you.
Thanks. Makes sense. I figured that was probably the reason.
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Kevin M
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Re: Cash at Fidelity

Post by Kevin M »

protagonist wrote: Mon Jun 10, 2024 10:15 pm
anon_investor wrote: Mon Jun 10, 2024 10:02 pm
protagonist wrote: Mon Jun 10, 2024 9:42 pm
anon_investor wrote: Mon Jun 10, 2024 6:54 pm
Kevin M wrote: Mon Jun 10, 2024 6:50 pm
Right. I've switched over to FDLXX for my main "checking" account, but still hold a few bucks in FZDXX in case the after-tax yield situation changes.

Note that the FZDXX minimum is only $10K in an IRA.
Yep, most of my cash in my Fido CMA (used as my checking) is in FDLXX but I keep a little in FZDXX, FZCXX and FZEXX so I have access if the yield in one of those becomes more advantagous for me.
Kevin and anon, why do you switch to FDLXX for your main checking acct., instead of just keeping it in FZDXX, which has a higher yield (5.13% vs. 4.93%)? Sure, the yield difference is pretty trivial, but what is the advantage of FDLXX?

I just use FZDXX as my checking acct, as well as my emergency fund. When money comes in, it automatically goes to SPAXX, and whenever I notice money there (like when my SS payment arrives) I just transfer it to FZDXX.

Am I missing something? Is FDLXX more convenient? Is FDLXX state tax exempt? If so, that would be a good reason for some I suppose...I haven't considered it since my state residence is FL.
FDLXX is the Fidelity Treasury Only Money Market Fund, usually it is somewhere around 92-95% exempt from state/local income taxes. So if you are subject to state/local income taxes like me, then the aftertax yield is more than FZDXX. Since you are in Florida and not subject to state/local taxes then FZDXX will yield more for you.
Thanks. Makes sense. I figured that was probably the reason.
I hadn't checked in awhile, but before I made the switch my taxable equivalent yield (TEY) was higher for FDLXX than for FZDXX. My marginal tax rates are 22% and 9.3% fed and state respectively. Currently the TEYs are 5.60% for FDLXX at 4.93% SEC, and 5.13% for FZDXX (TEY=SEC), but that assumes FDLXX is 100% Ts; AT 95% Ts FDLXX TEY is 5.56%, so 43 bps higher than FZDXX.
If I make a calculation error, #Cruncher probably will let me know.
zero_coupon
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Re: Cash at Fidelity

Post by zero_coupon »

anon_investor wrote: Mon Jun 10, 2024 1:06 pm Personally, I use a Fidelity Cash Management account and hold a bunch of cash in FDLXX and use it like a checking account. For larger amounts of cash at Fidelity, I have it in a separate brokerage account and autoroll t-bills of various durations (anywhere from 4 weeks to 26 weeks).
But do you find the CMA really offers any advantages over a brokerage account? (Assuming you meet the brokerage account ATM reimbursement threshold.)
anon_investor wrote: Mon Jun 10, 2024 6:54 pm Yep, most of my cash in my Fido CMA (used as my checking) is in FDLXX but I keep a little in FZDXX, FZCXX and FZEXX so I have access if the yield in one of those becomes more advantagous for me.
Are there any other $100K-minimum funds besides the 3 you listed (FZDXX, FZCXX and FZEXX)?
Lastrun
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Re: Cash at Fidelity

Post by Lastrun »

zero_coupon wrote: Tue Jun 11, 2024 12:32 pm ....
But do you find the CMA really offers any advantages over a brokerage account? (Assuming you meet the brokerage account ATM reimbursement threshold.)
.....
My two cents on this is the only real benefits to the CMA are:

1. Cash Manager tool. I use the minimum and maximum target balance features to keep the account balance where I want it.
2. Investment and Cash separation
a. Helps with risk management
b. Helps with a cleaner activity statement for each function

There is another that I think exists, and this is if one rolls Tbills there might be slight advantage to having account separation due to the manner in which the ladder rolls and measures cash available to invest. But I do not roll Tbills so perhaps others could chime in if there is any benefit to this.
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Kevin M
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Re: Cash at Fidelity

Post by Kevin M »

Lastrun wrote: Tue Jun 11, 2024 12:45 pm
zero_coupon wrote: Tue Jun 11, 2024 12:32 pm ....
But do you find the CMA really offers any advantages over a brokerage account? (Assuming you meet the brokerage account ATM reimbursement threshold.)
.....
My two cents on this is the only real benefits to the CMA are:

1. Cash Manager tool. I use the minimum and maximum target balance features to keep the account balance where I want it.
2. Investment and Cash separation
a. Helps with risk management
b. Helps with a cleaner activity statement for each function

There is another that I think exists, and this is if one rolls Tbills there might be slight advantage to having account separation due to the manner in which the ladder rolls and measures cash available to invest. But I do not roll Tbills so perhaps others could chime in if there is any benefit to this.
You can do all of this with a second brokerage account. The big benefit of a brokerage account is that you can use a higher yielding MM fund as the core fund. I don't see any benefits of a CMA unless you don't meet the minimum for ATM fee reimbursement.
If I make a calculation error, #Cruncher probably will let me know.
bople
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Re: Cash at Fidelity

Post by bople »

zero_coupon wrote: Tue Jun 11, 2024 12:32 pm Are there any other $100K-minimum funds besides the 3 you listed (FZDXX, FZCXX and FZEXX)?
There are only two $100K minimum funds, FZDXX and FZCXX. FZEXX is $25K minimum.

https://institutional.fidelity.com/app/ ... ersisted=F
bople
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Re: Cash at Fidelity

Post by bople »

Kevin M wrote: Tue Jun 11, 2024 1:01 pm
Lastrun wrote: Tue Jun 11, 2024 12:45 pm
zero_coupon wrote: Tue Jun 11, 2024 12:32 pm ....
But do you find the CMA really offers any advantages over a brokerage account? (Assuming you meet the brokerage account ATM reimbursement threshold.)
.....
My two cents on this is the only real benefits to the CMA are:

1. Cash Manager tool. I use the minimum and maximum target balance features to keep the account balance where I want it.
2. Investment and Cash separation
a. Helps with risk management
b. Helps with a cleaner activity statement for each function

There is another that I think exists, and this is if one rolls Tbills there might be slight advantage to having account separation due to the manner in which the ladder rolls and measures cash available to invest. But I do not roll Tbills so perhaps others could chime in if there is any benefit to this.
You can do all of this with a second brokerage account. The big benefit of a brokerage account is that you can use a higher yielding MM fund as the core fund. I don't see any benefits of a CMA unless you don't meet the minimum for ATM fee reimbursement.
You can use Cash Manager with a brokerage account? I have been asking Fidelity for years for just a simple "email me if I fall under $XX" and they don't offer it for anything except a CMA account.

Thankfully, CMA will have SPAXX as a core option by next week, which removes the one reason it was worse than a brokerage account in the past.
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anon_investor
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Re: Cash at Fidelity

Post by anon_investor »

zero_coupon wrote: Tue Jun 11, 2024 12:32 pm
anon_investor wrote: Mon Jun 10, 2024 1:06 pm Personally, I use a Fidelity Cash Management account and hold a bunch of cash in FDLXX and use it like a checking account. For larger amounts of cash at Fidelity, I have it in a separate brokerage account and autoroll t-bills of various durations (anywhere from 4 weeks to 26 weeks).
But do you find the CMA really offers any advantages over a brokerage account? (Assuming you meet the brokerage account ATM reimbursement threshold.)
anon_investor wrote: Mon Jun 10, 2024 6:54 pm Yep, most of my cash in my Fido CMA (used as my checking) is in FDLXX but I keep a little in FZDXX, FZCXX and FZEXX so I have access if the yield in one of those becomes more advantagous for me.
Are there any other $100K-minimum funds besides the 3 you listed (FZDXX, FZCXX and FZEXX)?
When I opened my CMA, my total Fidelity balance was below the threshold to get ATM reimbursement, plus I wanted to keep my other funds segregated. I have a Fido brokerage account where I buy ETFs every paycheck, and another Fido brokerage account where I buy T-Bills at auction and autoroll. From what I heard, getting the ATM reimbursement set up properly on a brokerage account after you have met the account threshold is not automatic and requires a phone call.

As others have said FZDXX is $100k min, FZCXX is $100k min, FXEXX is $25k min, the rest are $1 million min or higher.
Lastrun
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Re: Cash at Fidelity

Post by Lastrun »

I am not 100% sure where KevinM is coming from:

1. Cash Manager is only available in the CMA.

2. Next Monday, SPAXX is available as a core in the CMA.

3. I am not sure of any other core funds in the brokerage, other than SPAXX and FZFXX (and perhaps one other in an IRA). https://www.fidelity.com/mutual-funds/f ... ney-market
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jeffyscott
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Re: Cash at Fidelity

Post by jeffyscott »

Lastrun wrote: Tue Jun 11, 2024 1:49 pm 3. I am not sure of any other core funds in the brokerage, other than SPAXX and FZFXX (and perhaps one other in an IRA).
In my HSA, I it's FDRXX. Maybe that's used for IRAs, also :?: .

Not sure why they don't just merge those two?
anoop
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Re: Cash at Fidelity

Post by anoop »

Lastrun wrote: Sat Jun 08, 2024 6:22 pm This assumes the date is after June 15:

1. Lazy investor-use SPAXX as it is the core fund, available for auto-liquidation, hands off no worries.

2. State tax worried, but still lazy-use FDLXX, it will also auto-liquidate but is a non-core fund so it needs to be purchased

3. Yield maximizer- use FZDXX, also non-core and will not auto-liquidate, need $100K to start, and last time I checked is not a government fund so is subject to gate and fees risk.

4. State tax worried optimizer but for some reason afraid for buying T-bills. Use SGOV

5. State tax worried, optimizer, true aficionado. Roll T-bills.
6. If in highest federal tax bracket, then use muni market fund.
zero_coupon
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Re: Cash at Fidelity

Post by zero_coupon »

jeffyscott wrote: Tue Jun 11, 2024 1:59 pm
Lastrun wrote: Tue Jun 11, 2024 1:49 pm 3. I am not sure of any other core funds in the brokerage, other than SPAXX and FZFXX (and perhaps one other in an IRA).
In my HSA, I it's FDRXX. Maybe that's used for IRAs, also :?: .
FDRXX is selectable in IRAs, I believe. Some have been able to call and have FDRXX as core in a brokerage account.
zero_coupon
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Re: Cash at Fidelity

Post by zero_coupon »

Kevin M wrote: Tue Jun 11, 2024 1:01 pm
Lastrun wrote: Tue Jun 11, 2024 12:45 pm
zero_coupon wrote: Tue Jun 11, 2024 12:32 pm ....
But do you find the CMA really offers any advantages over a brokerage account? (Assuming you meet the brokerage account ATM reimbursement threshold.)
.....
My two cents on this is the only real benefits to the CMA are:

1. Cash Manager tool. I use the minimum and maximum target balance features to keep the account balance where I want it.
2. Investment and Cash separation
a. Helps with risk management
b. Helps with a cleaner activity statement for each function

There is another that I think exists, and this is if one rolls Tbills there might be slight advantage to having account separation due to the manner in which the ladder rolls and measures cash available to invest. But I do not roll Tbills so perhaps others could chime in if there is any benefit to this.
You can do all of this with a second brokerage account. The big benefit of a brokerage account is that you can use a higher yielding MM fund as the core fund. I don't see any benefits of a CMA unless you don't meet the minimum for ATM fee reimbursement.
Do you see any CMA drawbacks, assuming SPAXX becomes available as core?
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Kevin M
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Re: Cash at Fidelity

Post by Kevin M »

Lastrun wrote: Tue Jun 11, 2024 1:49 pm I am not 100% sure where KevinM is coming from:

1. Cash Manager is only available in the CMA.

2. Next Monday, SPAXX is available as a core in the CMA.
1. Guess I don't know what 1 is--I can click the cash management link and select any type of account.

2. That's great news!
If I make a calculation error, #Cruncher probably will let me know.
bople
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Re: Cash at Fidelity

Post by bople »

Kevin M wrote: Tue Jun 11, 2024 2:41 pm
Lastrun wrote: Tue Jun 11, 2024 1:49 pm I am not 100% sure where KevinM is coming from:

1. Cash Manager is only available in the CMA.

2. Next Monday, SPAXX is available as a core in the CMA.
1. Guess I don't know what 1 is--I can click the cash management link and select any type of account.

2. That's great news!
1 is https://www.fidelity.com/spend-save/fid ... sh-manager

I can't link directly to the website since it requires an account in the URL, but you can get to it from Cash Management, select your CMA on the left, Account Services and then the Cash manager tool tile. The killer feature for me is Minimum Target Balance Alert, no idea why they don't just have that as a standard alert for all accounts.
protagonist
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Re: Cash at Fidelity

Post by protagonist »

bople wrote: Tue Jun 11, 2024 4:13 pm
Kevin M wrote: Tue Jun 11, 2024 2:41 pm
Lastrun wrote: Tue Jun 11, 2024 1:49 pm I am not 100% sure where KevinM is coming from:

1. Cash Manager is only available in the CMA.

2. Next Monday, SPAXX is available as a core in the CMA.
1. Guess I don't know what 1 is--I can click the cash management link and select any type of account.

2. That's great news!
1 is https://www.fidelity.com/spend-save/fid ... sh-manager

I can't link directly to the website since it requires an account in the URL, but you can get to it from Cash Management, select your CMA on the left, Account Services and then the Cash manager tool tile. The killer feature for me is Minimum Target Balance Alert, no idea why they don't just have that as a standard alert for all accounts.
I use SPAXX as a core and transfer all the funds to FZDXX for slightly better yield.
Unfortunately, this does make the monthly statements more complicated, which is a bit of a hassle, because every transaction involves buying or selling FZDXX. Is the extra hassle (minimal, but still a bit more) worth the extra 20 or so bps of pre-tax yield? I dunno....
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Kevin M
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Re: Cash at Fidelity

Post by Kevin M »

bople wrote: Tue Jun 11, 2024 4:13 pm
Kevin M wrote: Tue Jun 11, 2024 2:41 pm
Lastrun wrote: Tue Jun 11, 2024 1:49 pm I am not 100% sure where KevinM is coming from:

1. Cash Manager is only available in the CMA.

2. Next Monday, SPAXX is available as a core in the CMA.
1. Guess I don't know what 1 is--I can click the cash management link and select any type of account.

2. That's great news!
1 is https://www.fidelity.com/spend-save/fid ... sh-manager

I can't link directly to the website since it requires an account in the URL, but you can get to it from Cash Management, select your CMA on the left, Account Services and then the Cash manager tool tile. The killer feature for me is Minimum Target Balance Alert, no idea why they don't just have that as a standard alert for all accounts.
Ah, I see. With a CMA you have that tile and with a brokerage you don't. That got me poking around, and I see now that on the Summary page, which I never look at, there are CMA type links toward the bottom right, but not for brokerage accounts. This is a quick way to distinguish between the two account types.

I can see how that would be useful for you and some others, but it's not for me, considering the way I manage my financial life.
If I make a calculation error, #Cruncher probably will let me know.
techbud
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Re: Cash at Fidelity

Post by techbud »

zero_coupon wrote: Tue Jun 11, 2024 12:32 pm
But do you find the CMA really offers any advantages over a brokerage account? (Assuming you meet the brokerage account ATM reimbursement threshold.)
A stupid but valid reason not mentioned elsewhere: some account aggregators (I’m looking at you, Empower Personal Capital) only correctly categorized expenses if they are imported from “cash” accounts, eg checkings, savings, or Fid CMA. If you try to pay bills, taxes, or other expenses out of a brokerage account, they may not categorize them correctly.
zero_coupon
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Re: Cash at Fidelity

Post by zero_coupon »

techbud wrote: Tue Jun 11, 2024 9:29 pm
zero_coupon wrote: Tue Jun 11, 2024 12:32 pm
But do you find the CMA really offers any advantages over a brokerage account? (Assuming you meet the brokerage account ATM reimbursement threshold.)
A stupid but valid reason not mentioned elsewhere: some account aggregators (I’m looking at you, Empower Personal Capital) only correctly categorized expenses if they are imported from “cash” accounts, eg checkings, savings, or Fid CMA. If you try to pay bills, taxes, or other expenses out of a brokerage account, they may not categorize them correctly.
Interesting that the CMA, which is a brokerage account, is recognized differently than a regular brokerage account.
nassau34
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Re: Cash at Fidelity

Post by nassau34 »

I hold any significant cash balances at Vanguard due to the roughly 30 basis point fee advantage over Fidelity, and let's not even talk about Schwab. The fund I keep it in is VUSXX, but that's driven by my state income tax and income situations.
Last edited by nassau34 on Wed Jun 12, 2024 7:17 am, edited 1 time in total.
Arnold Ziffel
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Re: Cash at Fidelity

Post by Arnold Ziffel »

What about being retired and keeping several hundred 1000 in a HYSA, fdic insured and living off the monthly interest?
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anon_investor
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Re: Cash at Fidelity

Post by anon_investor »

nassau34 wrote: Wed Jun 12, 2024 6:55 am I hold any significant cash balances at Vanguard due to the roughly 30 basis point fee advantage over Fidelity, and let's not even talk about Schwab. The fund I keep it in is VUSXX, but that's driven by my state income tax and income situations.
Too bad you can't pay bills directly out of VUSXX. That is the one major advantage of Fidelity, you can hold your finds in FDLXX and pay bills directly out of your Fidelity account without having to manually sell (Fidelity will autoliquidate).
nassau34
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Re: Cash at Fidelity

Post by nassau34 »

anon_investor wrote: Wed Jun 12, 2024 7:32 am
nassau34 wrote: Wed Jun 12, 2024 6:55 am I hold any significant cash balances at Vanguard due to the roughly 30 basis point fee advantage over Fidelity, and let's not even talk about Schwab. The fund I keep it in is VUSXX, but that's driven by my state income tax and income situations.
Too bad you can't pay bills directly out of VUSXX. That is the one major advantage of Fidelity, you can hold your finds in FDLXX and pay bills directly out of your Fidelity account without having to manually sell (Fidelity will autoliquidate).
True.
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jeffyscott
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Re: Cash at Fidelity

Post by jeffyscott »

nassau34 wrote: Wed Jun 12, 2024 6:55 am I hold any significant cash balances at Vanguard due to the roughly 30 basis point fee advantage over Fidelity, and let's not even talk about Schwab. The fund I keep it in is VUSXX, but that's driven by my state income tax and income situations.
I don't hold any significant cash balances in money markets anywhere, but Schwab's investor class money market funds actually charge 8 BP less than Fidelity's. Sure, they are not the settlement fund but neither is VUSXX.

The advantage at Fidelity is that your money market balance can be a pseudo checking account. That does not happen at Vanguard, so even being in Vanguard's settlement fund confers little advantage over being one of Schwab's "purchased" money market funds (or T-bills, SGOV, etc.).

Also income from SNSXX was 99.6% USGO last year, Vanguard was about 80%. My state tax rate is not that high, but that still would've offset about 60% of the ER difference (though, that's probably not going to be repeated, at least until the next time an artificial debt ceiling crisis is perpetrated on the country).
bople
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Re: Cash at Fidelity

Post by bople »

anon_investor wrote: Wed Jun 12, 2024 7:32 am
nassau34 wrote: Wed Jun 12, 2024 6:55 am I hold any significant cash balances at Vanguard due to the roughly 30 basis point fee advantage over Fidelity, and let's not even talk about Schwab. The fund I keep it in is VUSXX, but that's driven by my state income tax and income situations.
Too bad you can't pay bills directly out of VUSXX. That is the one major advantage of Fidelity, you can hold your finds in FDLXX and pay bills directly out of your Fidelity account without having to manually sell (Fidelity will autoliquidate).
Or, if you can meet the minimums, use FSIXX or FRSXX and they auto-liquidate as well. Annoying that Fidelity makes the gates so high, but I guess this is one way they make money to provide the other great services that CMAs and brokerage accounts have.

This is all the Fidelity, Vanguard and Schwab Treasury-Only style MMFs--should be nearly all USGO to avoid state taxes.

Code: Select all

	minimum	ER
FDLXX	$0	42 bps
FSIXX	$1M	18 bps
FRSXX	$10M	14 bps
VUSXX	$3000	 9 bps
SNSXX	$0	34 bps
SUTXX	$1M	19 bps
Neither VUSXX nor SNSXX/SUTXX can be used to auto liquidate to pay debits like the Fidelity ones. I find that feature worth even the 33 bps spread to FDLXX and I keep a very large balance in my payment hub CMA.
bople
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Re: Cash at Fidelity

Post by bople »

bople wrote: Wed Jun 12, 2024 12:48 pm
Or, if you can meet the minimums, use FSIXX or FRSXX and they auto-liquidate as well. Annoying that Fidelity makes the gates so high, but I guess this is one way they make money to provide the other great services that CMAs and brokerage accounts have.
Talking to myself, lol... but has anyone tried to buy FRSXX at WellsTrade and then DTC it over to Fidelity? Once you have even $1 in FRSXX in your Fidelity account, you can buy/sell any amount of it.

FRSXX is available with no minimums on WellsTrade: https://www08.wellsfargomedia.com/asset ... -funds.pdf
nassau34
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Re: Cash at Fidelity

Post by nassau34 »

jeffyscott wrote: Wed Jun 12, 2024 9:32 am
nassau34 wrote: Wed Jun 12, 2024 6:55 am I hold any significant cash balances at Vanguard due to the roughly 30 basis point fee advantage over Fidelity, and let's not even talk about Schwab. The fund I keep it in is VUSXX, but that's driven by my state income tax and income situations.
I don't hold any significant cash balances in money markets anywhere, but Schwab's investor class money market funds actually charge 8 BP less than Fidelity's. Sure, they are not the settlement fund but neither is VUSXX.

The advantage at Fidelity is that your money market balance can be a pseudo checking account. That does not happen at Vanguard, so even being in Vanguard's settlement fund confers little advantage over being one of Schwab's "purchased" money market funds (or T-bills, SGOV, etc.).

Also income from SNSXX was 99.6% USGO last year, Vanguard was about 80%. My state tax rate is not that high, but that still would've offset about 60% of the ER difference (though, that's probably not going to be repeated, at least until the next time an artificial debt ceiling crisis is perpetrated on the country).
That's a good point. VUSXX wandered into repos in the first half of last year, reducing their state tax exempt percentage for the year to 80.06%. They seemed to back off on that in the second-half. I'm not sure how to figure out what they will do on this going forward.
bongo
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Re: Cash at Fidelity

Post by bongo »

bople wrote: Wed Jun 12, 2024 12:52 pm
bople wrote: Wed Jun 12, 2024 12:48 pm Or, if you can meet the minimums, use FSIXX or FRSXX and they auto-liquidate as well. Annoying that Fidelity makes the gates so high, but I guess this is one way they make money to provide the other great services that CMAs and brokerage accounts have.
Talking to myself, lol... but has anyone tried to buy FRSXX at WellsTrade and then DTC it over to Fidelity? Once you have even $1 in FRSXX in your Fidelity account, you can buy/sell any amount of it.

FRSXX is available with no minimums on WellsTrade: https://www08.wellsfargomedia.com/asset ... -funds.pdf
Worked for me earlier this year. ACATed 1k over and was able exchange all my fdlxx into frsxx the next day.

btw fsixx is available at Merrill Edge, but I read here a while ago that they'll block the transfer. Might be worth trying again for those with an account there in case something has changed. fsixx is the same fund as frsxx, just .04% lower yield
bople
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Re: Cash at Fidelity

Post by bople »

bongo wrote: Thu Jun 13, 2024 11:41 am
bople wrote: Wed Jun 12, 2024 12:52 pm
bople wrote: Wed Jun 12, 2024 12:48 pm Or, if you can meet the minimums, use FSIXX or FRSXX and they auto-liquidate as well. Annoying that Fidelity makes the gates so high, but I guess this is one way they make money to provide the other great services that CMAs and brokerage accounts have.
Talking to myself, lol... but has anyone tried to buy FRSXX at WellsTrade and then DTC it over to Fidelity? Once you have even $1 in FRSXX in your Fidelity account, you can buy/sell any amount of it.

FRSXX is available with no minimums on WellsTrade: https://www08.wellsfargomedia.com/asset ... -funds.pdf
Worked for me earlier this year. ACATed 1k over and was able exchange all my fdlxx into frsxx the next day.

btw fsixx is available at Merrill Edge, but I read here a while ago that they'll block the transfer. Might be worth trying again for those with an account there in case something has changed. fsixx is the same fund as frsxx, just .04% lower yield
Thanks for the data point! Did you initiate on the Fidelity side and do a partial transfer or initiate from WellsTrade?

This has probably pushed me into taking the $2,500 transfer bonus they are offering for $250,000.
bongo
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Re: Cash at Fidelity

Post by bongo »

yep, you're welcome! I got the idea from one of the other threads here.

It was a partial ACAT, no fees charged. You always initiate an ACAT from the receiving account, ie Fidelity in this case.
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LilyFleur
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Re: Cash at Fidelity

Post by LilyFleur »

bople wrote: Thu Jun 13, 2024 12:05 pm
bongo wrote: Thu Jun 13, 2024 11:41 am
bople wrote: Wed Jun 12, 2024 12:52 pm
bople wrote: Wed Jun 12, 2024 12:48 pm Or, if you can meet the minimums, use FSIXX or FRSXX and they auto-liquidate as well. Annoying that Fidelity makes the gates so high, but I guess this is one way they make money to provide the other great services that CMAs and brokerage accounts have.
Talking to myself, lol... but has anyone tried to buy FRSXX at WellsTrade and then DTC it over to Fidelity? Once you have even $1 in FRSXX in your Fidelity account, you can buy/sell any amount of it.

FRSXX is available with no minimums on WellsTrade: https://www08.wellsfargomedia.com/asset ... -funds.pdf
Worked for me earlier this year. ACATed 1k over and was able exchange all my fdlxx into frsxx the next day.

btw fsixx is available at Merrill Edge, but I read here a while ago that they'll block the transfer. Might be worth trying again for those with an account there in case something has changed. fsixx is the same fund as frsxx, just .04% lower yield
Thanks for the data point! Did you initiate on the Fidelity side and do a partial transfer or initiate from WellsTrade?

This has probably pushed me into taking the $2,500 transfer bonus they are offering for $250,000.
Fidelity is offering you $2500 for only $250,000? That is great!
bople
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Re: Cash at Fidelity

Post by bople »

LilyFleur wrote: Thu Jun 13, 2024 5:01 pm
bople wrote: Thu Jun 13, 2024 12:05 pm
bongo wrote: Thu Jun 13, 2024 11:41 am Worked for me earlier this year. ACATed 1k over and was able exchange all my fdlxx into frsxx the next day.

btw fsixx is available at Merrill Edge, but I read here a while ago that they'll block the transfer. Might be worth trying again for those with an account there in case something has changed. fsixx is the same fund as frsxx, just .04% lower yield
Thanks for the data point! Did you initiate on the Fidelity side and do a partial transfer or initiate from WellsTrade?

This has probably pushed me into taking the $2,500 transfer bonus they are offering for $250,000.
Fidelity is offering you $2500 for only $250,000? That is great!
No, Wells Fargo Premier Checking is offering it https://accountoffers.wellsfargo.com/premierbonus/

I normally wouldn't care, but that in addition to the ability to move all the $10M minimum buy-in Fidelity MMFs over to Fidelity is making it worthwhile.
Soobs
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Re: Cash at Fidelity

Post by Soobs »

With ETF settlement down to T+1 why not just lump it all into something like USFR? As of today the 30-day SEC yield is 5.32% and it's 100% exempt from state income tax.
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