[Split from "Fidelity as a one stop shop" thread - locked or restricted Fidelity account issues]

Non-investing personal finance issues including insurance, credit, real estate, taxes, employment and legal issues such as trusts and wills.
Nevaco
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Re: [Split from "Fidelity as a one stop shop" thread - locked or restricted Fidelity account issues]

Post by Nevaco »

Thought I'd share an update, as I was one of the earlier posters sharing my experience on long hold times. Recently pulled $15k from our brick and mortar bank into Fidelity brokerage account and was hit with the 3+ week hold. Bank account has been linked to Fidelity via Finicity for at least 6 months and the $15k deposited into that account originally came from Fidelity (cash is fungible, I know, but sharing since Fidelity had seen the funds go from Fidelity to this bank and was now seeing them come back).

Glad to have maintained my relationship with Schwab despite originally having planned to use Fidelity as a one stop shop, as I now have enough in MMFs at Schwab to get us through 2 months without touching the assets at Fidelity. Will likely continue to use Fidelity as our primary "spending" account so that we maximize return on cash, but will have long-term savings (e.g., IRAs + taxable) and backup liquidity at Schwab at all times if needed.

Disappointing, but c'est la vie.
Trek9
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Re: [Split from "Fidelity as a one stop shop" thread - locked or restricted Fidelity account issues]

Post by Trek9 »

Nevaco wrote: Wed Oct 30, 2024 11:42 am Thought I'd share an update, as I was one of the earlier posters sharing my experience on long hold times. Recently pulled $15k from our brick and mortar bank into Fidelity brokerage account and was hit with the 3+ week hold. Bank account has been linked to Fidelity via Finicity for at least 6 months and the $15k deposited into that account originally came from Fidelity (cash is fungible, I know, but sharing since Fidelity had seen the funds go from Fidelity to this bank and was now seeing them come back).

Glad to have maintained my relationship with Schwab despite originally having planned to use Fidelity as a one stop shop, as I now have enough in MMFs at Schwab to get us through 2 months without touching the assets at Fidelity. Will likely continue to use Fidelity as our primary "spending" account so that we maximize return on cash, but will have long-term savings (e.g., IRAs + taxable) and backup liquidity at Schwab at all times if needed.

Disappointing, but c'est la vie.
I am in a similar situation - external institution I was transferring from does not have ACH Push so had to Pull from Fidelity, which resulted in a 3 week hold on the transfer, rendering those funds pretty much useless.

Additionally my check deposit at Fidelity is still limited to $1,000 per day subject to the 3 week hold.

I have been with Fidelity for a decade and have HSA , IRAS and Taxable account there... for the time being.
cb474
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Re: [Split from "Fidelity as a one stop shop" thread - locked or restricted Fidelity account issues]

Post by cb474 »

Another update on hold times. A couple days ago, I deposited a check in person at the local Fidelity office and it was still subject to the 16 (business) day hold. I've only had my CMA account for half a year (also have a Fidelity IRA for a couple years). On the other hand, I have made this same deposit, in the same amount, with a check from the same person, every month, and every time it clears. Does this really have the hallmarks of fraud? What kind of long game do they think I'm playing?

The guy at the local office said that they are hearing from the back office that Fidelity hopes to stop the long hold times maybe next month. So at least they envision an end to this. I wonder if they'll ever go back to the two to three day holds? Anyway, they obviously need a better algorithm for determing what looks suspicious and what does not. I'm sticking it out for now, but if Fidelity can't get their act togther in a few months I'm definitely rethinking things. But I'm glad I still have my old bank account as a back up.

I never planned to be a one stop shopper (partly because I'd already many years ago had a similar bad experience with crazy unwarranted restrictions at my old bank and nobody competent to address the problem). But it really does seem like this experience ought to put to rest the one stop shop idea. It's good to have back up options. If all of your funds are in one place, you are totally stuck if you get into a restriction snafu nightmare. And I would add, it's foolish to think this can't happen anywhere.
mushripu
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Re: [Split from "Fidelity as a one stop shop" thread - locked or restricted Fidelity account issues]

Post by mushripu »

Between DW and I, we have 20 odd accounts spread across 3 providers. I used to think of that as a disadvantage and wanted to consolidate with fidelity.
Now all this! :oops: :annoyed
I have not experienced any of the issues getting reported so far.
I guess the accounts would need to remain spread out like this and a information packet for survivor beneficiaries would be in order.
Alaska_Skeeter
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Re: How long does it take to transfer money to Fidelity?

Post by Alaska_Skeeter »

[Moved from Subject: How long does it take to transfer money to Fidelity? to here - moderator Kendall]

I did a Electronic Funds Transfer on Oct 28 for $50k.
Today I tried to complete orders for the portfolio and had $0 available to trade.

The customer service representative told me this was due to a fraud problem in September,
so transferring all funds may take 3 weeks.

This seems strange to me since there is $50k in the money market after the EFT on Oct 28,
and I was able to order $40k in various mutual funds, but not that last $10k.
Last edited by Kendall on Wed Nov 06, 2024 11:21 am, edited 1 time in total.
HomeStretch
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Re: How long does it take to transfer money to Fidelity?

Post by HomeStretch »

Alaska_Skeeter wrote: Wed Nov 06, 2024 7:15 am … The customer service representative told me this was due to a fraud problem in September, so transferring all funds may take 3 weeks. …
Yes this is an issue. There is a forum mega thread about the Fidelity holds/restrictions here:
viewtopic.php?p=8038647&sid=d3ce3a21877 ... 1#p8038647
Kendall
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Re: [Split from "Fidelity as a one stop shop" thread - locked or restricted Fidelity account issues]

Post by Kendall »

Alaska_Skeeter's post has been moved to the active discussion about Fidelity deposit restrictions.

(Thanks to the member who reported the post and provided a link.)
NYCaviator
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Re: How long does it take to transfer money to Fidelity?

Post by NYCaviator »

Alaska_Skeeter wrote: Wed Nov 06, 2024 7:15 am
The customer service representative told me this was due to a fraud problem in September,
so transferring all funds may take 3 weeks.
Absolutely insane that Fidelity is still doing this. How have they noted sorted these problems out in 2 months?
Dottie57
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Re: Fidelity as a one stop shop

Post by Dottie57 »

f8andbethere wrote: Tue Sep 17, 2024 11:41 am
EnjoyIt wrote: Tue Sep 17, 2024 11:21 am My poor interactions with other institutions:
….
1 poor interaction does not make or break a business for me. If I had multiple issues that would be another story. Except maybe the airline industry. I'm a captive audience with no where else to go :(

Jumping ship does not guarantee the other institution wont have issues one day in the future.

It feels kind of like getting slighted once on the playground, then taking your ball and going home.
I would frame doing business elsewhere as taking my ball and finding some other kids I enjoy playing with more.

For many Fidelity customers, this is more than a “slight.”
Is One bad interaction enough to make one leave?
Life is more than grinding it out in some drab office setting for an arbitrary number. This isn't a videogame where the higher score is better. -Nathan Drake
Dottie57
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Re: Fidelity as a one stop shop

Post by Dottie57 »

f8andbethere wrote: Tue Sep 17, 2024 11:41 am
EnjoyIt wrote: Tue Sep 17, 2024 11:21 am My poor interactions with other institutions:
….
1 poor interaction does not make or break a business for me. If I had multiple issues that would be another story. Except maybe the airline industry. I'm a captive audience with no where else to go :(

Jumping ship does not guarantee the other institution wont have issues one day in the future.

It feels kind of like getting slighted once on the playground, then taking your ball and going home.
I would frame doing business elsewhere as taking my ball and finding some other kids I enjoy playing with more.

For many Fidelity customers, this is more than a “slight.”
Is One bad interaction enough to make one leave?
Life is more than grinding it out in some drab office setting for an arbitrary number. This isn't a videogame where the higher score is better. -Nathan Drake
Pu239
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Re: Fidelity as a one stop shop

Post by Pu239 »

Dottie57 wrote: Wed Nov 06, 2024 1:22 pm
Is One bad interaction enough to make one leave?
It was enough to make me realize that Fidelity CMA is a poor substitute for a bank and too risky to anchor a one stop shop. For now, I'm keeping my CMA accounts open at maintenance level until more details come out from Fidelity. I haven't left yet but they're on life support. It was a valuable lesson - not nearly as bad as the Synapse/Evolve debacle - but enough to experience some of the drawbacks of a neobank. Because they are a bank or have one, Schwab, Wells Fargo, and Bank of America seem like better choices for integrating accounts, which is a shame as I was intending to move towards Fidelity for the long term.
Between the idea And the reality...Between the motion And the act...Falls the Shadow - T. S. Eliot
volstagg
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Re: Fidelity as a one stop shop

Post by volstagg »

Dottie57 wrote: Wed Nov 06, 2024 1:22 pm Is One bad interaction enough to make one leave?
This is really a situation where it's quality not quantity. Some customers have been treated far worse than others and each person has to make a personal decision about what's best for them.
Horsefly
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Re: [Split from "Fidelity as a one stop shop" thread - locked or restricted Fidelity account issues]

Post by Horsefly »

A compromise - which I'm going to go with - is to go back to the good old days: Keep your investing at Fidelity, but do your banking with a bank. Seems simple enough, at least if the problem is making deposits that you want to use right away (like banking).
$=WxTxI
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Fidelity Imposes 16 Business day hold on incoming ETF and Checks

Post by $=WxTxI »

[This thread has been merged into this on-going discussion. Moderator Pops1860]

Fidelity has imposed a 16 business day hold on incoming EFTs and check deposits to combat fraud according to CS?

CS stated they do not have an end date planned, nor do they intend to let people know about/publicize it.

They do not have a banner or notification on the transfer page.

Has anyone else encountered this?

If so have you had any luck expediting/eliminating the hold?

I escalated it to a supervisor at premium services and they stated it is a blanket policy now.

To clarify this is a transfer from an external account that has been linked to fidelity for a long time and has regular transfers to/from.
Last edited by $=WxTxI on Wed Nov 06, 2024 6:43 pm, edited 1 time in total.
Loandapper
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Re: Fidelity Imposes 16 Business day hold on incoming ETF and Checks

Post by Loandapper »

I'm currently on the phone dealing with this at the moment.

Likely outcome is that I'm moving to Schwab.
FinanceGeek
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Re: Fidelity Imposes 16 Business day hold on incoming ETF and Checks

Post by FinanceGeek »

That completely negates the usefulness of having a CMA account versus just using a local B&M bank.
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anon_investor
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Re: Fidelity Imposes 16 Business day hold on incoming ETF and Checks

Post by anon_investor »

$=WxTxI wrote: Wed Nov 06, 2024 6:08 pm Fidelity has imposed a 16 business day hold on incoming ETFs and check deposits to combat fraud according to CS?

CS stated they do not have an end date planned, nor do they intend to let people know about/publicize it.

They do not have a banner or notification on the transfer page.

Has anyone else encountered this?

If so have you had any luck expediting/eliminating the hold?

I escalated it to a supervisor at premium services and they stated it is a blanket policy now.

To clarify this is a transfer from an external account that has been linked to fidelity for a long time and has regular transfers to/from.
A few threads about this. Some people have this some people don't. So not a blanket policy. I haven't had this restriction. I transfer money from external accounts a few times a month, only 1-2 business day holds.
$=WxTxI
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Re: Fidelity Imposes 16 Business day hold on incoming ETF and Checks

Post by $=WxTxI »

anon_investor wrote: Wed Nov 06, 2024 6:14 pm
$=WxTxI wrote: Wed Nov 06, 2024 6:08 pm Fidelity has imposed a 16 business day hold on incoming ETFs and check deposits to combat fraud according to CS?

CS stated they do not have an end date planned, nor do they intend to let people know about/publicize it.

They do not have a banner or notification on the transfer page.

Has anyone else encountered this?

If so have you had any luck expediting/eliminating the hold?

I escalated it to a supervisor at premium services and they stated it is a blanket policy now.

To clarify this is a transfer from an external account that has been linked to fidelity for a long time and has regular transfers to/from.
A few threads about this. Some people have this some people don't. So not a blanket policy. I haven't had this restriction. I transfer money from external accounts a few times a month, only 1-2 business day holds.
Are you using Fidelity to initiate the transfer (pull) from your external account or a push from your external account to Fidelity?

Fidelity stated Pulls are what trigger the hold.
HomeStretch
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Re: Fidelity Imposes 16 Business day hold on incoming ETF and Checks

Post by HomeStretch »

Here is the mega thread about the Fidelity account holds and restrictions:
viewtopic.php?p=8038647#p8038647
$=WxTxI
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Re: Fidelity Imposes 16 Business day hold on incoming ETF and Checks

Post by $=WxTxI »

HomeStretch wrote: Wed Nov 06, 2024 6:24 pm Here is the mega thread about the Fidelity account holds and restrictions:
viewtopic.php?p=8038647#p8038647
Thank you for the link HomeStretch. Mods should probably merge these.

I was the biggest advocate of Fidelity as a one stop shop and CMA. I recommended them countless times.

No longer.

Bad move by Fidelity. Knee jerk reaction to fraud.
exodusing
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Re: Fidelity Imposes 16 Business day hold on incoming ETF and Checks

Post by exodusing »

$=WxTxI wrote: Wed Nov 06, 2024 6:08 pm Fidelity has imposed a 16 business day hold on incoming ETFs and check deposits to combat fraud according to CS?

CS stated they do not have an end date planned, nor do they intend to let people know about/publicize it.

They do not have a banner or notification on the transfer page.

Has anyone else encountered this?

If so have you had any luck expediting/eliminating the hold?

I escalated it to a supervisor at premium services and they stated it is a blanket policy now.

To clarify this is a transfer from an external account that has been linked to fidelity for a long time and has regular transfers to/from.
Is the hold just on the amount of the incoming ETFs and checks? In other words, if you have other amounts with Fidelity, can you make transfers out, at least from the same account, so long as you leave the new deposit in place for 16 business days?

Does the policy apply to wire transfers?
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anon_investor
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Re: Fidelity Imposes 16 Business day hold on incoming ETF and Checks

Post by anon_investor »

$=WxTxI wrote: Wed Nov 06, 2024 6:22 pm
anon_investor wrote: Wed Nov 06, 2024 6:14 pm

A few threads about this. Some people have this some people don't. So not a blanket policy. I haven't had this restriction. I transfer money from external accounts a few times a month, only 1-2 business day holds.
Are you using Fidelity to initiate the transfer (pull) from your external account or a push from your external account to Fidelity?

Fidelity stated Pulls are what trigger the hold.
I am initiating pulls from Fidelity. Going to my CMA or brokerage from outside banks. All funds are immediately available to trade. I buy FSIXX immediately in my CMA and VTI in my brokerage. Amounts have been in the 4 figures. I do have 5 figure amounts in my CMA and brokerage. All finds have been available to withdraw within 2 business days. I do have bi-weekly pay checks direct deposited into my CMA. Not sure if the fact i have regular direct deposits and more funds in the account that I am transferring in is helping me avoid long holds. I do have 6 figures in assets at Fido across all accounts (CMA, brokerages, HSA, 529s).
Loandapper
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Re: [Split from "Fidelity as a one stop shop" thread - locked or restricted Fidelity account issues]

Post by Loandapper »

Just off the phone with Fidelity reps.

Long story short: They are an evil, terrible company and I'm leaving for good.

Vote with your feet! Leave FiDo now.
NYCaviator
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Re: Fidelity Imposes 16 Business day hold on incoming ETF and Checks

Post by NYCaviator »

exodusing wrote: Wed Nov 06, 2024 6:33 pm
$=WxTxI wrote: Wed Nov 06, 2024 6:08 pm Fidelity has imposed a 16 business day hold on incoming ETFs and check deposits to combat fraud according to CS?

CS stated they do not have an end date planned, nor do they intend to let people know about/publicize it.

They do not have a banner or notification on the transfer page.

Has anyone else encountered this?

If so have you had any luck expediting/eliminating the hold?

I escalated it to a supervisor at premium services and they stated it is a blanket policy now.

To clarify this is a transfer from an external account that has been linked to fidelity for a long time and has regular transfers to/from.
Is the hold just on the amount of the incoming ETFs and checks? In other words, if you have other amounts with Fidelity, can you make transfers out, at least from the same account, so long as you leave the new deposit in place for 16 business days?

Does the policy apply to wire transfers?
ETFs or EFTs?
$=WxTxI
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Joined: Fri Apr 24, 2020 12:54 pm

Re: Fidelity Imposes 16 Business day hold on incoming ETF and Checks

Post by $=WxTxI »

exodusing wrote: Wed Nov 06, 2024 6:33 pm
$=WxTxI wrote: Wed Nov 06, 2024 6:08 pm Fidelity has imposed a 16 business day hold on incoming ETFs and check deposits to combat fraud according to CS?

CS stated they do not have an end date planned, nor do they intend to let people know about/publicize it.

They do not have a banner or notification on the transfer page.

Has anyone else encountered this?

If so have you had any luck expediting/eliminating the hold?

I escalated it to a supervisor at premium services and they stated it is a blanket policy now.

To clarify this is a transfer from an external account that has been linked to fidelity for a long time and has regular transfers to/from.
Is the hold just on the amount of the incoming ETFs and checks? In other words, if you have other amounts with Fidelity, can you make transfers out, at least from the same account, so long as you leave the new deposit in place for 16 business days?

Does the policy apply to wire transfers?
Policy does not apply to wire transfers per CS.

Hold is on incoming Pulls from Fidelity or checks.

Other amount is available for transfer out.

Ex.
100k starting balance
Pull 100k into Fidelity. (Hold for 16 business days.)

200k now available to Trade.
100k available to Withdraw/Transfer out.
UpperNwGuy
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Re: Fidelity Imposes 16 Business day hold on incoming ETF and Checks

Post by UpperNwGuy »

Fidelity is a great brokerage, and I will continue to use it as my primary brokerage.

I don't believe in the concept of one stop shop. I do my banking at banks and my investing at brokerages. The new Fidelity policy does not affect me.
$=WxTxI
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Re: Fidelity Imposes 16 Business day hold on incoming ETF and Checks

Post by $=WxTxI »

NYCaviator wrote: Wed Nov 06, 2024 6:38 pm
exodusing wrote: Wed Nov 06, 2024 6:33 pm
Is the hold just on the amount of the incoming ETFs and checks? In other words, if you have other amounts with Fidelity, can you make transfers out, at least from the same account, so long as you leave the new deposit in place for 16 business days?

Does the policy apply to wire transfers?
ETFs or EFTs?

Good catch on the typo.

EFTs.
Loandapper
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Re: [Split from "Fidelity as a one stop shop" thread - locked or restricted Fidelity account issues]

Post by Loandapper »

Does someone have an email address for Fidelity CEO or other high-level exec to complain about this?
$=WxTxI
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Re: Fidelity Imposes 16 Business day hold on incoming ETF and Checks

Post by $=WxTxI »

anon_investor wrote: Wed Nov 06, 2024 6:35 pm
$=WxTxI wrote: Wed Nov 06, 2024 6:22 pm

Are you using Fidelity to initiate the transfer (pull) from your external account or a push from your external account to Fidelity?

Fidelity stated Pulls are what trigger the hold.
I am initiating pulls from Fidelity. Going to my CMA or brokerage from outside banks. All funds are immediately available to trade. I buy FSIXX immediately in my CMA and VTI in my brokerage. Amounts have been in the 4 figures. I do have 5 figure amounts in my CMA and brokerage. All finds have been available to withdraw within 2 business days. I do have bi-weekly pay checks direct deposited into my CMA. Not sure if the fact i have regular direct deposits and more funds in the account that I am transferring in is helping me avoid long holds. I do have 6 figures in assets at Fido across all accounts (CMA, brokerages, HSA, 529s).
They stated funds are available to trade immediately, not available to withdraw if it was a EFT or check deposit. 16 days hold.

Direct deposits are not subject to this hold.

I have 7 figures in assets at Fidelity so it seems maybe random? Unsure at this time.
$=WxTxI
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Re: Fidelity Imposes 16 Business day hold on incoming ETF and Checks

Post by $=WxTxI »

I updated OP.

It's EFTs not ETFs.

Thanks for the catch on the typo.
UpperNwGuy
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Re: [Split from "Fidelity as a one stop shop" thread - locked or restricted Fidelity account issues]

Post by UpperNwGuy »

Horsefly wrote: Wed Nov 06, 2024 3:34 pm A compromise - which I'm going to go with - is to go back to the good old days: Keep your investing at Fidelity, but do your banking with a bank. Seems simple enough, at least if the problem is making deposits that you want to use right away (like banking).
This is what I have always done. I do my banking at banks and my investing at brokerages. Fidelity is a great brokerage.
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anon_investor
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Re: Fidelity Imposes 16 Business day hold on incoming ETF and Checks

Post by anon_investor »

$=WxTxI wrote: Wed Nov 06, 2024 6:42 pm
anon_investor wrote: Wed Nov 06, 2024 6:35 pm

I am initiating pulls from Fidelity. Going to my CMA or brokerage from outside banks. All funds are immediately available to trade. I buy FSIXX immediately in my CMA and VTI in my brokerage. Amounts have been in the 4 figures. I do have 5 figure amounts in my CMA and brokerage. All finds have been available to withdraw within 2 business days. I do have bi-weekly pay checks direct deposited into my CMA. Not sure if the fact i have regular direct deposits and more funds in the account that I am transferring in is helping me avoid long holds. I do have 6 figures in assets at Fido across all accounts (CMA, brokerages, HSA, 529s).
They stated funds are available to trade immediately, not available to withdraw if it was a EFT or check deposit. 16 days hold.

Direct deposits are not subject to this hold.

I have 7 figures in assets at Fidelity so it seems maybe random? Unsure at this time.
Sounds random. I did a pull initiated from Fidelity on Monday for a few hundred dollars from an external bank, funds are available to withdraw already. I have not done a mobile check deposit in a long time.
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anon_investor
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Re: [Split from "Fidelity as a one stop shop" thread - locked or restricted Fidelity account issues]

Post by anon_investor »

Loandapper wrote: Wed Nov 06, 2024 6:36 pm Just off the phone with Fidelity reps.

Long story short: They are an evil, terrible company and I'm leaving for good.

Vote with your feet! Leave FiDo now.
What happened?
RetiredAL
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Re: [Split from "Fidelity as a one stop shop" thread - locked or restricted Fidelity account issues]

Post by RetiredAL »

UpperNwGuy wrote: Wed Nov 06, 2024 6:46 pm
Horsefly wrote: Wed Nov 06, 2024 3:34 pm A compromise - which I'm going to go with - is to go back to the good old days: Keep your investing at Fidelity, but do your banking with a bank. Seems simple enough, at least if the problem is making deposits that you want to use right away (like banking).
This is what I have always done. I do my banking at banks and my investing at brokerages. Fidelity is a great brokerage.
+1

Wells Fargo has always been a good bank to me. In recently settling an Estate, I always allowed incoming monies to settle before moving it out. Hold processes (delays) are always there whether you see and experience them or not. If you don't see/experience them, then the bank has vetted you as a low risk customer and has extended trust to you, but that does not mean they are not there.
TwstdSista
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Re: [Split from "Fidelity as a one stop shop" thread - locked or restricted Fidelity account issues]

Post by TwstdSista »

Horsefly wrote: Wed Nov 06, 2024 3:34 pm A compromise - which I'm going to go with - is to go back to the good old days: Keep your investing at Fidelity, but do your banking with a bank. Seems simple enough, at least if the problem is making deposits that you want to use right away (like banking).
^ This. We hold our emergency fund and taxable account at Fidelity on top of all our retirement accounts. We're going to move the EF over to Merrill Edge to get preferred rewards status on the BoA credit cards. If it goes well, I'll probably move our entire taxable account over to ME and our checking to BoA.
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mapleosb
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Re: [Split from "Fidelity as a one stop shop" thread - locked or restricted Fidelity account issues]

Post by mapleosb »

Horsefly wrote: Wed Nov 06, 2024 3:34 pm A compromise - which I'm going to go with - is to go back to the good old days: Keep your investing at Fidelity, but do your banking with a bank. Seems simple enough, at least if the problem is making deposits that you want to use right away (like banking).
+1
NYCaviator
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Re: [Split from "Fidelity as a one stop shop" thread - locked or restricted Fidelity account issues]

Post by NYCaviator »

UpperNwGuy wrote: Wed Nov 06, 2024 6:46 pm
Horsefly wrote: Wed Nov 06, 2024 3:34 pm A compromise - which I'm going to go with - is to go back to the good old days: Keep your investing at Fidelity, but do your banking with a bank. Seems simple enough, at least if the problem is making deposits that you want to use right away (like banking).
This is what I have always done. I do my banking at banks and my investing at brokerages. Fidelity is a great brokerage.
I still can't get past how poorly they've handled this whole situation. Even if it's only affecting some peoples' ACH pulls and check deposits, there has been zero communication about this to customers, zero support, and zero explanation. I'm frustrated because I've had to rework where we keep our cash savings because I can't trust that Fidelity won't hold it for weeks on end. I shouldn't have to guess if the funds will settle in 3 days or 3 weeks.

It also doesn't inspire a lot of confidence in Fidelity's back end systems. There is no conceivable reason that these holds should still be happening 2 months after this alleged fraud activity. The same thing happened to Chase, they quickly dealt with it, and got back to business as usual. It makes you wonder, if Fidelity's systems are this vulnerable, what would happen if there was a bigger issue?

I think this shows why it's prudent, at a minimum, to have a real bank account and not to rely on a brokerage. Likewise, it is also prudent to have more than one account so that you have a backup if something like this happens.
volstagg
Posts: 375
Joined: Tue Feb 01, 2022 7:28 am

Re: [Split from "Fidelity as a one stop shop" thread - locked or restricted Fidelity account issues]

Post by volstagg »

NYCaviator wrote: Thu Nov 07, 2024 7:17 am I still can't get past how poorly they've handled this whole situation. Even if it's only affecting some peoples' ACH pulls and check deposits, there has been zero communication about this to customers, zero support, and zero explanation. I'm frustrated because I've had to rework where we keep our cash savings because I can't trust that Fidelity won't hold it for weeks on end. I shouldn't have to guess if the funds will settle in 3 days or 3 weeks.

It also doesn't inspire a lot of confidence in Fidelity's back end systems. There is no conceivable reason that these holds should still be happening 2 months after this alleged fraud activity. The same thing happened to Chase, they quickly dealt with it, and got back to business as usual. It makes you wonder, if Fidelity's systems are this vulnerable, what would happen if there was a bigger issue?

I think this shows why it's prudent, at a minimum, to have a real bank account and not to rely on a brokerage. Likewise, it is also prudent to have more than one account so that you have a backup if something like this happens.
Agreed, Fidelity could of done a better job at communicating changes over the last 6-8 weeks.

That said, for the most part I am viewing this whole mess as a plus for long term customers who use Fidelity as their primary investment house. I've been a Fidelity customer for close to 30 years. Fidelity customer support, while still good, has gotten worse over the last 5+ years. I think no small part of that is the number of new customers they've signed up to use them for banking and not just investments. IMO, if there is a pull back in the number of people using Fidelity for their banking needs because of these changes, it'll free up resources to let them put focus back on their core business of investments and hopefully bring customer service levels back to what they use to be.
NYCaviator
Posts: 2820
Joined: Sat Apr 09, 2016 5:06 pm
Location: NYC

Re: [Split from "Fidelity as a one stop shop" thread - locked or restricted Fidelity account issues]

Post by NYCaviator »

volstagg wrote: Thu Nov 07, 2024 8:37 am That said, for the most part I am viewing this whole mess as a plus for long term customers who use Fidelity as their primary investment house. I've been a Fidelity customer for close to 30 years. Fidelity customer support, while still good, has gotten worse over the last 5+ years. I think no small part of that is the number of new customers they've signed up to use them for banking and not just investments. IMO, if there is a pull back in the number of people using Fidelity for their banking needs because of these changes, it'll free up resources to let them put focus back on their core business of investments and hopefully bring customer service levels back to what they use to be.
I agree with the worsening customer service. My thought is that Fidelity made a push to grow too fast and it is backfiring. They marketed heavily to day traders and new investors when the meme stocks were going wild, which likely resulted in a lot of smaller accounts with high maintenance customers. The same is true for their CMA. It seemed like everyone was signing up for a CMA in the last year or two. This was (and still is?) a strain on their overall customer service and backend systems.

But what's interesting is that they are still pushing their CMA very hard despite all of the problems they are having. It's advertised right there on the home page. And yet there's not a word about the possibility of extended hold times.

I still like Fidelity and I'm not in an immediate rush to move money out, but I'm not using them for cash, and I've been looking for other places to diversify in case something else happens with them. Merrill Edge has been pretty good, and their customer service was much better than what I experienced with Fidelity last time I called.

Competitors are quickly catching up to the big three and as we've seen with Fidelity, it's getting harder for them to compete without giving customers some value add (like US Bank and Merrill credit cards or JP Morgan and Wells free bank accounts).
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