Fidelity as a one stop shop

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anon_investor
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Re: Fidelity as a one stop shop

Post by anon_investor »

Lyrrad wrote: Sun Aug 07, 2022 7:45 pm
anon_investor wrote: Sun Aug 07, 2022 6:58 pm Does the CMA ATM have a foreign transaction fee if used abroad? I assume that is considered do
different than a reimbursable ATM fee.
With the CMA, I have never been charged a foreign transaction fee for ATM withdrawals. I confirmed this by making an identical withdrawal transaction with a no foreign transaction fee Visa debit card from another bank at the same time, and confirmed the same amount was debited from both accounts.
Thanks. I am strongly considering opening a CMA to use as a quasi checking account. I have a Fidelity brokerage account, but think I would want a separate account for that use, I want some separation between the 2 in case the CMA gets compromised.
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JoMoney
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Re: Fidelity as a one stop shop

Post by JoMoney »

anon_investor wrote: Sun Aug 07, 2022 7:55 pm
Lyrrad wrote: Sun Aug 07, 2022 7:45 pm
anon_investor wrote: Sun Aug 07, 2022 6:58 pm Does the CMA ATM have a foreign transaction fee if used abroad? I assume that is considered do
different than a reimbursable ATM fee.
With the CMA, I have never been charged a foreign transaction fee for ATM withdrawals. I confirmed this by making an identical withdrawal transaction with a no foreign transaction fee Visa debit card from another bank at the same time, and confirmed the same amount was debited from both accounts.
Thanks. I am strongly considering opening a CMA to use as a quasi checking account. I have a Fidelity brokerage account, but think I would want a separate account for that use, I want some separation between the 2 in case the CMA gets compromised.
What kind of "compromise" are you concerned about? If someone gets access to your Fidelity account they would have access to all your accounts under that login. Stocks/bonds/mutual funds (other than money market) aren't vulnerable to cash withdrawals by debit card/ACH/check writing.
"To achieve satisfactory investment results is easier than most people realize; to achieve superior results is harder than it looks." - Benjamin Graham
careerdata
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Re: Fidelity as a one stop shop

Post by careerdata »

JoMoney wrote: Sun Aug 07, 2022 7:03 pm
Right, only cash listed as "Available to withdraw" can be withdrawn as cash. Other securities require being sold and a settlement period before the cash would be eligible to be withdrawn. If the concern is about fraud/theft, you might also look into the Fidelity account "lockdown" feature. While you can't use ACH/debit card/check writing/bill pay against securities there could be the possibility of someone fraudulently doing an ACATS transfer of your securities in-kind to another brokerage. WIth the Fidelity "lockdown" enabled, it would prevent the ACATS transfer of the account, while still leaving cash available for bill pay/ATM/check writing/ACH.
Thanks for sharing this! If we have my wife's paychecks, and possibly mine paycheck as well a bit down the road, directly deposited in our Fidelity brokerage account and invested initially in SPAXX, but then immediately or shortly thereafter traded by me into SPRXX with the Fidelity phone app, does this "lockdown" feature cause an issue with us being able to write checks, pay credit card and other bills, etc? I am not familiar yet with the ACATS transfer of account risk, but it does not sound good!

Regards,

Joe
Lyrrad
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Re: Fidelity as a one stop shop

Post by Lyrrad »

anon_investor wrote: Sun Aug 07, 2022 7:55 pm Thanks. I am strongly considering opening a CMA to use as a quasi checking account. I have a Fidelity brokerage account, but think I would want a separate account for that use, I want some separation between the 2 in case the CMA gets compromised.
My strategy is to have one brokerage account for short term needs like monthly bills without a debit or ATM card. I keep my CMA accounts separate and empty and transfer money into them if I plan to make ATM withdrawals.

If I wanted to keep any long term investments at Fidelity, I would plan to use separate accounts for them.

When I searched for the margin overdraft issue, I see a post from 2019 indicating that it was resolved in mid-2018. Apparently, at some point ATM withdrawals from a CMA would not pull from margin from a brokerage account set as overdraft. One may or may not want to have a CMA attached to a margin-enabled brokerage account.
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anon_investor
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Re: Fidelity as a one stop shop

Post by anon_investor »

JoMoney wrote: Sun Aug 07, 2022 8:00 pm
anon_investor wrote: Sun Aug 07, 2022 7:55 pm
Lyrrad wrote: Sun Aug 07, 2022 7:45 pm
anon_investor wrote: Sun Aug 07, 2022 6:58 pm Does the CMA ATM have a foreign transaction fee if used abroad? I assume that is considered do
different than a reimbursable ATM fee.
With the CMA, I have never been charged a foreign transaction fee for ATM withdrawals. I confirmed this by making an identical withdrawal transaction with a no foreign transaction fee Visa debit card from another bank at the same time, and confirmed the same amount was debited from both accounts.
Thanks. I am strongly considering opening a CMA to use as a quasi checking account. I have a Fidelity brokerage account, but think I would want a separate account for that use, I want some separation between the 2 in case the CMA gets compromised.
What kind of "compromise" are you concerned about? If someone gets access to your Fidelity account they would have access to all your accounts under that login. Stocks/bonds/mutual funds (other than money market) aren't vulnerable to cash withdrawals by debit card/ACH/check writing.
Fraudulent ACH and checks (I know the debit card can be locked). A separate CMA means I can limit the balance to just my anticipated ACH bill payments. I do accumulate cash for upcoming larger bills (taxes, etc.). So a fraudulent ACH or check wouldn't drain thought. That is my thinking.
nalor511
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Re: Fidelity as a one stop shop

Post by nalor511 »

Schwab: no fee for foreign ATM withdrawal, no fee for foreign DEBIT purchases
Fidelity: no fee for foreign ATM withdrawal, 1% fee for foreign DEBIT purchases
volstagg
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Re: Fidelity as a one stop shop

Post by volstagg »

careerdata wrote: Sun Aug 07, 2022 8:09 pm
Thanks for sharing this! If we have my wife's paychecks, and possibly mine paycheck as well a bit down the road, directly deposited in our Fidelity brokerage account and invested initially in SPAXX, but then immediately or shortly thereafter traded by me into SPRXX with the Fidelity phone app, does this "lockdown" feature cause an issue with us being able to write checks, pay credit card and other bills, etc? I am not familiar yet with the ACATS transfer of account risk, but it does not sound good!

Regards,

Joe
The account lock down feature at Fidelity does not prevent "normal banking functions", like check writing, external ACH pulls or ATM/Debit card usage.

I have lock down enabled on all my accounts (IRA's, Brokerage and CMA) and can confirm that ATM withdraw w/automatic sale of FZDXX, external ACH pulls and checks clearing is not prevented/blocked on my Brokerage and CMA accounts.

What lock down does block is ACATS transfers to another brokerage, transfers between Fidelity accounts, and transfers out of Fidelity that are initiated from fidelity.com (i.e. you can't ACH/wire transfer funds from fidelity.com with lock down on, but you can use ACH to pull funds from an external bank).
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anon_investor
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Re: Fidelity as a one stop shop

Post by anon_investor »

Can a Fidelity CMA receive micro deposits from another financial institution used for account verification?
nalor511
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Re: Fidelity as a one stop shop

Post by nalor511 »

anon_investor wrote: Mon Aug 08, 2022 1:42 pm Can a Fidelity CMA receive micro deposits from another financial institution used for account verification?
Yes
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anon_investor
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Re: Fidelity as a one stop shop

Post by anon_investor »

nalor511 wrote: Mon Aug 08, 2022 1:45 pm
anon_investor wrote: Mon Aug 08, 2022 1:42 pm Can a Fidelity CMA receive micro deposits from another financial institution used for account verification?
Yes
Thanks, I just opened my Fidelity CMA, trying to link it to some CC accounts and mortgage. Apparently BoA and WF both require micro deposits to link accounts. Chase does not.
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BogleMelon
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Re: Fidelity as a one stop shop

Post by BogleMelon »

anon_investor wrote: Sun Aug 07, 2022 8:22 pm
JoMoney wrote: Sun Aug 07, 2022 8:00 pm
anon_investor wrote: Sun Aug 07, 2022 7:55 pm
Lyrrad wrote: Sun Aug 07, 2022 7:45 pm
anon_investor wrote: Sun Aug 07, 2022 6:58 pm Does the CMA ATM have a foreign transaction fee if used abroad? I assume that is considered do
different than a reimbursable ATM fee.
With the CMA, I have never been charged a foreign transaction fee for ATM withdrawals. I confirmed this by making an identical withdrawal transaction with a no foreign transaction fee Visa debit card from another bank at the same time, and confirmed the same amount was debited from both accounts.
Thanks. I am strongly considering opening a CMA to use as a quasi checking account. I have a Fidelity brokerage account, but think I would want a separate account for that use, I want some separation between the 2 in case the CMA gets compromised.
What kind of "compromise" are you concerned about? If someone gets access to your Fidelity account they would have access to all your accounts under that login. Stocks/bonds/mutual funds (other than money market) aren't vulnerable to cash withdrawals by debit card/ACH/check writing.
Fraudulent ACH and checks (I know the debit card can be locked). A separate CMA means I can limit the balance to just my anticipated ACH bill payments. I do accumulate cash for upcoming larger bills (taxes, etc.). So a fraudulent ACH or check wouldn't drain thought. That is my thinking.
OP here, I ended up doing exactly this, CMA acting as a checking account, while brokerage to separate large amount of money with no debit card or checks issued for it. I didn't like the feeling of mixing large chucks of money with an account I would use for everyday activity. So far the system is solid with the exception of the FOMO I get whenever I read about the VMFXX yield!
"One of the funny things about stock market, every time one is buying another is selling, and both think they are astute" - William Feather
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William4u
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Re: Fidelity as a one stop shop

Post by William4u »

indexfundfan wrote: Sun Aug 07, 2022 2:07 pm
careerdata wrote: Sun Aug 07, 2022 1:57 pm
William4u wrote: Sun Aug 07, 2022 1:12 pm
careerdata wrote: Sun Aug 07, 2022 12:37 pm Another very helpful BH member helped me convert our Fidelity brokerage account SPAXX money market holdings to SPRXX to get the current 7-day SEC yield of 2.0%.
How do you do that? Does it require $100k and a phone call?
I don't think there are any minimums or trading fees involved but maybe I missed a flag on that. I just did this today as an initial test, following instructions that he included in a couple of his responses to my questions:

--Downloaded the Fidelity app to my iPhone (he said you could do the same online)
--Opened up the app and clicked on the dollar icon ($) to trade and enter SPRXX
--It brought up the $13k we had in SPAXX as available funds to trade and I entered that exact amount as the amount I wanted to trade into SPRXX.
--It brought up some disclaimer language on the confirmation page and then I submitted the trade.

The BH poster said it only takes 10 seconds to complete and he was 100% correct. If that is all I have to do every two weeks after my wife's biweekly paycheck gets deposited into the CMA we open then that is super easy and super quick.

Regards,

Joe
What you are in effect doing is to purchase SPRXX. It is paid for by the settlement fund (or what Fidelity calls the "core position"). I believe the minimum initial purchase for SPRXX is $1.

The $100k that William mentioned is for FZDXX. FZDXX has an initial minimum purchase of $100k in the taxable account. But you are not required to maintain that balance once you get in. FZDXX typically has 12 bps higher in yield compared to SPRXX. So if SPRXX gives you 2.00%, you will get 2.12% from FZDXX.
Quick question(s): Once I purchase SPRXX with funds from my Core Position, can it function like my Core Position? Will a check first pull from the Core Position (SPAXX) and then pull from SPRXX? If I keep $10 in the Core Position, and write a $100 check, will it auto-pull $90 from SPRXX? Thanks.
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William4u
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Re: Fidelity as a one stop shop

Post by William4u »

BogleMelon wrote: Mon Aug 08, 2022 2:49 pm
anon_investor wrote: Sun Aug 07, 2022 8:22 pm
JoMoney wrote: Sun Aug 07, 2022 8:00 pm
anon_investor wrote: Sun Aug 07, 2022 7:55 pm
Lyrrad wrote: Sun Aug 07, 2022 7:45 pm

With the CMA, I have never been charged a foreign transaction fee for ATM withdrawals. I confirmed this by making an identical withdrawal transaction with a no foreign transaction fee Visa debit card from another bank at the same time, and confirmed the same amount was debited from both accounts.
Thanks. I am strongly considering opening a CMA to use as a quasi checking account. I have a Fidelity brokerage account, but think I would want a separate account for that use, I want some separation between the 2 in case the CMA gets compromised.
What kind of "compromise" are you concerned about? If someone gets access to your Fidelity account they would have access to all your accounts under that login. Stocks/bonds/mutual funds (other than money market) aren't vulnerable to cash withdrawals by debit card/ACH/check writing.
Fraudulent ACH and checks (I know the debit card can be locked). A separate CMA means I can limit the balance to just my anticipated ACH bill payments. I do accumulate cash for upcoming larger bills (taxes, etc.). So a fraudulent ACH or check wouldn't drain thought. That is my thinking.
OP here, I ended up doing exactly this, CMA acting as a checking account, while brokerage to separate large amount of money with no debit card or checks issued for it. I didn't like the feeling of mixing large chucks of money with an account I would use for everyday activity. So far the system is solid with the exception of the FOMO I get whenever I read about the VMFXX yield!
I really miss having a VanguardAdvantage bank account with VMFXX as the Core Position. Since VMFXX is owned by the fund investors, its rate is better than Fidelity's SPAXX. There is often a 30-40bp difference!
nalor511
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Re: Fidelity as a one stop shop

Post by nalor511 »

William4u wrote: Mon Aug 08, 2022 4:08 pm
indexfundfan wrote: Sun Aug 07, 2022 2:07 pm
careerdata wrote: Sun Aug 07, 2022 1:57 pm
William4u wrote: Sun Aug 07, 2022 1:12 pm
careerdata wrote: Sun Aug 07, 2022 12:37 pm Another very helpful BH member helped me convert our Fidelity brokerage account SPAXX money market holdings to SPRXX to get the current 7-day SEC yield of 2.0%.
How do you do that? Does it require $100k and a phone call?
I don't think there are any minimums or trading fees involved but maybe I missed a flag on that. I just did this today as an initial test, following instructions that he included in a couple of his responses to my questions:

--Downloaded the Fidelity app to my iPhone (he said you could do the same online)
--Opened up the app and clicked on the dollar icon ($) to trade and enter SPRXX
--It brought up the $13k we had in SPAXX as available funds to trade and I entered that exact amount as the amount I wanted to trade into SPRXX.
--It brought up some disclaimer language on the confirmation page and then I submitted the trade.

The BH poster said it only takes 10 seconds to complete and he was 100% correct. If that is all I have to do every two weeks after my wife's biweekly paycheck gets deposited into the CMA we open then that is super easy and super quick.

Regards,

Joe
What you are in effect doing is to purchase SPRXX. It is paid for by the settlement fund (or what Fidelity calls the "core position"). I believe the minimum initial purchase for SPRXX is $1.

The $100k that William mentioned is for FZDXX. FZDXX has an initial minimum purchase of $100k in the taxable account. But you are not required to maintain that balance once you get in. FZDXX typically has 12 bps higher in yield compared to SPRXX. So if SPRXX gives you 2.00%, you will get 2.12% from FZDXX.
Quick question(s): Once I purchase SPRXX with funds from my Core Position, can it function like my Core Position? Will a check first pull from the Core Position (SPAXX) and then pull from SPRXX? If I keep $10 in the Core Position, and write a $100 check, will it auto-pull $90 from SPRXX? Thanks.
Yes to both (for withdrawals, not for deposits)
tj
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Re: Fidelity as a one stop shop

Post by tj »

William4u wrote: Mon Aug 08, 2022 4:15 pm
BogleMelon wrote: Mon Aug 08, 2022 2:49 pm
anon_investor wrote: Sun Aug 07, 2022 8:22 pm
JoMoney wrote: Sun Aug 07, 2022 8:00 pm
anon_investor wrote: Sun Aug 07, 2022 7:55 pm

Thanks. I am strongly considering opening a CMA to use as a quasi checking account. I have a Fidelity brokerage account, but think I would want a separate account for that use, I want some separation between the 2 in case the CMA gets compromised.
What kind of "compromise" are you concerned about? If someone gets access to your Fidelity account they would have access to all your accounts under that login. Stocks/bonds/mutual funds (other than money market) aren't vulnerable to cash withdrawals by debit card/ACH/check writing.
Fraudulent ACH and checks (I know the debit card can be locked). A separate CMA means I can limit the balance to just my anticipated ACH bill payments. I do accumulate cash for upcoming larger bills (taxes, etc.). So a fraudulent ACH or check wouldn't drain thought. That is my thinking.
OP here, I ended up doing exactly this, CMA acting as a checking account, while brokerage to separate large amount of money with no debit card or checks issued for it. I didn't like the feeling of mixing large chucks of money with an account I would use for everyday activity. So far the system is solid with the exception of the FOMO I get whenever I read about the VMFXX yield!
I really miss having a VanguardAdvantage bank account with VMFXX as the Core Position. Since VMFXX is owned by the fund investors, its rate is better than Fidelity's SPAXX. There is often a 30-40bp difference!
Can't you still get checks for that fund?

https://personal.vanguard.com/us/whatwe ... eckwriting
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William4u
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Re: Fidelity as a one stop shop

Post by William4u »

tj wrote: Mon Aug 08, 2022 5:15 pm
William4u wrote: Mon Aug 08, 2022 4:15 pm
BogleMelon wrote: Mon Aug 08, 2022 2:49 pm
anon_investor wrote: Sun Aug 07, 2022 8:22 pm
JoMoney wrote: Sun Aug 07, 2022 8:00 pm
What kind of "compromise" are you concerned about? If someone gets access to your Fidelity account they would have access to all your accounts under that login. Stocks/bonds/mutual funds (other than money market) aren't vulnerable to cash withdrawals by debit card/ACH/check writing.
Fraudulent ACH and checks (I know the debit card can be locked). A separate CMA means I can limit the balance to just my anticipated ACH bill payments. I do accumulate cash for upcoming larger bills (taxes, etc.). So a fraudulent ACH or check wouldn't drain thought. That is my thinking.
OP here, I ended up doing exactly this, CMA acting as a checking account, while brokerage to separate large amount of money with no debit card or checks issued for it. I didn't like the feeling of mixing large chucks of money with an account I would use for everyday activity. So far the system is solid with the exception of the FOMO I get whenever I read about the VMFXX yield!
I really miss having a VanguardAdvantage bank account with VMFXX as the Core Position. Since VMFXX is owned by the fund investors, its rate is better than Fidelity's SPAXX. There is often a 30-40bp difference!
Can't you still get checks for that fund?

https://personal.vanguard.com/us/whatwe ... eckwriting
Yes, but having full bank services (where all my bills get paid automatically) was nice when they had VanguardAdvantage accounts.
SnowBog
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Re: Fidelity as a one stop shop

Post by SnowBog »

nalor511 wrote: Mon Aug 08, 2022 4:45 pm
William4u wrote: Mon Aug 08, 2022 4:08 pm Quick question(s): Once I purchase SPRXX with funds from my Core Position, can it function like my Core Position? Will a check first pull from the Core Position (SPAXX) and then pull from SPRXX? If I keep $10 in the Core Position, and write a $100 check, will it auto-pull $90 from SPRXX? Thanks.
Yes to both (for withdrawals, not for deposits)
As an interesting aside...

Let's say you have $1000 in SPRXX.

Let's say your paycheck gets deposited for $500. You place an order to "buy" $500 "more" of SPRXX.

Before the "buy" order processes, you have a debit of $300 (ATM, check, debit card, ACH, transfer, bill pay, etc.), leaving you with only $200 net new money.

You don't need to do a thing!

Since the MM funds will be liquidated to as needed, the $500 buy will complete using $300 from the current SPRXX holdings. The net result is you'll end up with $1200 in SPRXX.

I used to try and micromanage these, canceling the original "buy" orders and replacing them with only the smaller "delta" left. I don't bother anymore... One less thing in life to worry about!
PersonalFinanceJam
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Re: Fidelity as a one stop shop

Post by PersonalFinanceJam »

William4u wrote: Mon Aug 08, 2022 4:15 pm I really miss having a VanguardAdvantage bank account with VMFXX as the Core Position. Since VMFXX is owned by the fund investors, its rate is better than Fidelity's SPAXX. There is often a 30-40bp difference!
I find this comment amusing and a triumph of Vanguard marketing. Clearly the rate difference is all due to the Vanguard structure and not to them cutting features (you acknowledge you miss) and underinvesting in the business and associated services.
nalor511
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Re: Fidelity as a one stop shop

Post by nalor511 »

SnowBog wrote: Mon Aug 08, 2022 6:16 pm
nalor511 wrote: Mon Aug 08, 2022 4:45 pm
William4u wrote: Mon Aug 08, 2022 4:08 pm Quick question(s): Once I purchase SPRXX with funds from my Core Position, can it function like my Core Position? Will a check first pull from the Core Position (SPAXX) and then pull from SPRXX? If I keep $10 in the Core Position, and write a $100 check, will it auto-pull $90 from SPRXX? Thanks.
Yes to both (for withdrawals, not for deposits)
As an interesting aside...

Let's say you have $1000 in SPRXX.

Let's say your paycheck gets deposited for $500. You place an order to "buy" $500 "more" of SPRXX.

Before the "buy" order processes, you have a debit of $300 (ATM, check, debit card, ACH, transfer, bill pay, etc.), leaving you with only $200 net new money.

You don't need to do a thing!

Since the MM funds will be liquidated to as needed, the $500 buy will complete using $300 from the current SPRXX holdings. The net result is you'll end up with $1200 in SPRXX.

I used to try and micromanage these, canceling the original "buy" orders and replacing them with only the smaller "delta" left. I don't bother anymore... One less thing in life to worry about!
I actually just "buy" for the entire balance of the account (e.g. Balance $400sprxx, deposit $200, enter buy for $600sprxx), and this always works (even if there are debits). Fidelity advised I do it this way.
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anon_investor
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Re: Fidelity as a one stop shop

Post by anon_investor »

nalor511 wrote: Mon Aug 08, 2022 7:02 pm
SnowBog wrote: Mon Aug 08, 2022 6:16 pm
nalor511 wrote: Mon Aug 08, 2022 4:45 pm
William4u wrote: Mon Aug 08, 2022 4:08 pm Quick question(s): Once I purchase SPRXX with funds from my Core Position, can it function like my Core Position? Will a check first pull from the Core Position (SPAXX) and then pull from SPRXX? If I keep $10 in the Core Position, and write a $100 check, will it auto-pull $90 from SPRXX? Thanks.
Yes to both (for withdrawals, not for deposits)
As an interesting aside...

Let's say you have $1000 in SPRXX.

Let's say your paycheck gets deposited for $500. You place an order to "buy" $500 "more" of SPRXX.

Before the "buy" order processes, you have a debit of $300 (ATM, check, debit card, ACH, transfer, bill pay, etc.), leaving you with only $200 net new money.

You don't need to do a thing!

Since the MM funds will be liquidated to as needed, the $500 buy will complete using $300 from the current SPRXX holdings. The net result is you'll end up with $1200 in SPRXX.

I used to try and micromanage these, canceling the original "buy" orders and replacing them with only the smaller "delta" left. I don't bother anymore... One less thing in life to worry about!
I actually just "buy" for the entire balance of the account (e.g. Balance $400sprxx, deposit $200, enter buy for $600sprxx), and this always works (even if there are debits). Fidelity advised I do it this way.
For new money transferred into Fidelity how soon is it considered available for withdrawal? If you buy SPRXX with new funds does that reset the available to withdraw clock?

Does direct deposit money become available for withdrawal faster?
arf30
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Re: Fidelity as a one stop shop

Post by arf30 »

The CMA is paying 1.20% interest currently (which must be better than most checking accounts?), it's probably not worth the hassle of manually buying SPRXX unless you're keeping a huge balance.
Last edited by arf30 on Mon Aug 08, 2022 7:47 pm, edited 1 time in total.
PersonalFinanceJam
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Re: Fidelity as a one stop shop

Post by PersonalFinanceJam »

anon_investor wrote: Mon Aug 08, 2022 7:21 pm ...
For new money transferred into Fidelity how soon is it considered available for withdrawal? If you buy SPRXX with new funds does that reset the available to withdraw clock?

Does direct deposit money become available for withdrawal faster?
When money becomes available has been a complaint by some. See the fidelity FAQ on moving money linked below. There can be a hold period of several business days for money transferred from a linked checking account or check deposit.
https://www.fidelity.com/cash-managemen ... move-money

My experience has been the hold has typically not been more than 1 or 2 business days but others have experienced longer. Money pushed to fidelity as in direct deposit is immediately available once it shows up. Example: I'm paid every other Friday. On Friday pay day my pay is available for withdraw when I wake up in the morning to check.

I'm not sure about SPRXX but I imagine it's like any other Fidelity money market. I occasionally buy FDRXX and it does not reset the clock.
MrJedi
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Re: Fidelity as a one stop shop

Post by MrJedi »

When I link a new bank account and transfer money in, I noticed it usually takes 7 calendar days before I can withdraw.

My seasoned bank links are available to withdraw in 1-2 days it seems.
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JoMoney
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Re: Fidelity as a one stop shop

Post by JoMoney »

anon_investor wrote: Mon Aug 08, 2022 7:21 pm....
For new money transferred into Fidelity how soon is it considered available for withdrawal? If you buy SPRXX with new funds does that reset the available to withdraw clock?

Does direct deposit money become available for withdrawal faster?
It depends HOW the "new money transferred into Fidelity" is transferred there.
Direct Deposits and money pushed into the account is available for withdrawal immediately (once it shows in the account a day or two later). I transferred some money from Treasury Direct into my CMA account and it was showing as available for withdrawal the next day. My payroll Direct Deposit shows up a day before the scheduled pay-day.
If do an ACH "Pull" where I tell Fidelity to move the money from another bank to my Fidelity account, the money is available to "trade" and buy a money market fund (or whatever) right away, but it takes about a week for it to be available for withdrawal or to be debited against.

If cash already available for withdrawal (but in some other money market or FDIC bank sweep) is used to by another money market like SPRXX it's still available for immediate withdrawal, and continues to show as such in the "Available for withdrawal" balance view, but the actual trade shows as "pending" for about two days while it all settles.
"To achieve satisfactory investment results is easier than most people realize; to achieve superior results is harder than it looks." - Benjamin Graham
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anon_investor
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Re: Fidelity as a one stop shop

Post by anon_investor »

PersonalFinanceJam wrote: Mon Aug 08, 2022 7:38 pm
anon_investor wrote: Mon Aug 08, 2022 7:21 pm ...
For new money transferred into Fidelity how soon is it considered available for withdrawal? If you buy SPRXX with new funds does that reset the available to withdraw clock?

Does direct deposit money become available for withdrawal faster?
When money becomes available has been a complaint by some. See the fidelity FAQ on moving money linked below. There can be a hold period of several business days for money transferred from a linked checking account or check deposit.
https://www.fidelity.com/cash-managemen ... move-money

My experience has been the hold has typically not been more than 1 or 2 business days but others have experienced longer. Money pushed to fidelity as in direct deposit is immediately available once it shows up. Example: I'm paid every other Friday. On Friday pay day my pay is available for withdraw when I wake up in the morning to check.

I'm not sure about SPRXX but I imagine it's like any other Fidelity money market. I occasionally buy FDRXX and it does not reset the clock.
Interesting, I wonder if it would be faster if I linked my Fidelity CMA in my Ally Bank account and pushed to Fidelity.
SnowBog
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Re: Fidelity as a one stop shop

Post by SnowBog »

anon_investor wrote: Mon Aug 08, 2022 8:01 pm
PersonalFinanceJam wrote: Mon Aug 08, 2022 7:38 pm
anon_investor wrote: Mon Aug 08, 2022 7:21 pm ...
For new money transferred into Fidelity how soon is it considered available for withdrawal? If you buy SPRXX with new funds does that reset the available to withdraw clock?

Does direct deposit money become available for withdrawal faster?
When money becomes available has been a complaint by some. See the fidelity FAQ on moving money linked below. There can be a hold period of several business days for money transferred from a linked checking account or check deposit.
https://www.fidelity.com/cash-managemen ... move-money

My experience has been the hold has typically not been more than 1 or 2 business days but others have experienced longer. Money pushed to fidelity as in direct deposit is immediately available once it shows up. Example: I'm paid every other Friday. On Friday pay day my pay is available for withdraw when I wake up in the morning to check.

I'm not sure about SPRXX but I imagine it's like any other Fidelity money market. I occasionally buy FDRXX and it does not reset the clock.
Interesting, I wonder if it would be faster if I linked my Fidelity CMA in my Ally Bank account and pushed to Fidelity.
One piece not mentioned is the money is available immediately "for trade".

For example, let's say I go start a transfer pulling in $10k from my HMBradley account, all $10k is available immediately "for trade". Meaning I can immediately buy $10k of FZDXX, VTI, or anything else I want.

Those funds might take a few days to actually clear ACH, and thus my purchase might take a few days to fully "settle".

So the only "issue" is if you need to "withdraw" or "transfer" funds to a different account. Other than direct deposit, which is immediate, you typically need to wait a few days.

As to if "pushing" funds is quicker, I'm not sure if it ultimately matters, or at least hasn't in my experience. The few times I've tried, it seems like the "push" takes a few days before it shows up in Fidelity. Can't recall if it needed a few days to settle in Fidelity, but the few days it took was basically the same as just "pulling" from Fidelity anyway (but without the ability to use those funds in Fidelity before they settled).
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anon_investor
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Re: Fidelity as a one stop shop

Post by anon_investor »

SnowBog wrote: Mon Aug 08, 2022 8:20 pm
anon_investor wrote: Mon Aug 08, 2022 8:01 pm
PersonalFinanceJam wrote: Mon Aug 08, 2022 7:38 pm
anon_investor wrote: Mon Aug 08, 2022 7:21 pm ...
For new money transferred into Fidelity how soon is it considered available for withdrawal? If you buy SPRXX with new funds does that reset the available to withdraw clock?

Does direct deposit money become available for withdrawal faster?
When money becomes available has been a complaint by some. See the fidelity FAQ on moving money linked below. There can be a hold period of several business days for money transferred from a linked checking account or check deposit.
https://www.fidelity.com/cash-managemen ... move-money

My experience has been the hold has typically not been more than 1 or 2 business days but others have experienced longer. Money pushed to fidelity as in direct deposit is immediately available once it shows up. Example: I'm paid every other Friday. On Friday pay day my pay is available for withdraw when I wake up in the morning to check.

I'm not sure about SPRXX but I imagine it's like any other Fidelity money market. I occasionally buy FDRXX and it does not reset the clock.
Interesting, I wonder if it would be faster if I linked my Fidelity CMA in my Ally Bank account and pushed to Fidelity.
One piece not mentioned is the money is available immediately "for trade".

For example, let's say I go start a transfer pulling in $10k from my HMBradley account, all $10k is available immediately "for trade". Meaning I can immediately buy $10k of FZDXX, VTI, or anything else I want.

Those funds might take a few days to actually clear ACH, and thus my purchase might take a few days to fully "settle".

So the only "issue" is if you need to "withdraw" or "transfer" funds to a different account. Other than direct deposit, which is immediate, you typically need to wait a few days.

As to if "pushing" funds is quicker, I'm not sure if it ultimately matters, or at least hasn't in my experience. The few times I've tried, it seems like the "push" takes a few days before it shows up in Fidelity. Can't recall if it needed a few days to settle in Fidelity, but the few days it took was basically the same as just "pulling" from Fidelity anyway (but without the ability to use those funds in Fidelity before they settled).
Thanks, it seems that unless it is a direct deposit, I have to wait. Good to know. I am planning to use my new CMA to pay for CC and mortgage bills. But that money will be deposited weeks in advance of any payment, so the settlement time won't be a real issue. I had planned to keep extra cash as a buffer anyway. So this wait for funds to be available for withdrawal will only be a temporary issue for me as I just set up the account today.

Funds I transferred in today were immediately available for trade (just not for withdrawals), so I already bought SPRXX. The order filled this evening. Now the wait for micro deposits from BoA and WF to link my CMA to set up automatic payments.
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JoMoney
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Re: Fidelity as a one stop shop

Post by JoMoney »

SnowBog wrote: Mon Aug 08, 2022 8:20 pm...
As to if "pushing" funds is quicker, I'm not sure if it ultimately matters, or at least hasn't in my experience. The few times I've tried, it seems like the "push" takes a few days before it shows up in Fidelity. Can't recall if it needed a few days to settle in Fidelity, but the few days it took was basically the same as just "pulling" from Fidelity anyway (but without the ability to use those funds in Fidelity before they settled).
It makes a big difference depending on what purpose you plan to use the money for.
If you're transferring the money to Fidelity to withdraw the cash at an ATM, or pay a bill, then you'll want to "push" the money from the other institution. It may take a day or two for it to show up, but it will be immediately available to withdraw (or pay bill, etc..) as soon as it arrives (a day or two later.)
If you're transferring the money to Fidelity to "trade" or buy securities with, you'll probably want to "pull" the money instructing Fidelity to move it from the other account, that way will allow you to trade or buy securities immediately, and being able to withdraw the cash quickly (it will take about a week before it's available to withdraw this way) probably isn't the priority for someone buying securities with the money.
"To achieve satisfactory investment results is easier than most people realize; to achieve superior results is harder than it looks." - Benjamin Graham
hafjell
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Re: Fidelity as a one stop shop

Post by hafjell »

JoMoney wrote: Mon Aug 08, 2022 8:38 pmIt makes a big difference depending on what purpose you plan to use the money for.
If you're transferring the money to Fidelity to withdraw the cash at an ATM, or pay a bill, then you'll want to "push" the money from the other institution. It may take a day or two for it to show up, but it will be immediately available to withdraw (or pay bill, etc..) as soon as it arrives (a day or two later.)
If you're transferring the money to Fidelity to "trade" or buy securities with, you'll probably want to "pull" the money instructing Fidelity to move it from the other account, that way will allow you to trade or buy securities immediately, and being able to withdraw the cash quickly (it will take about a week before it's available to withdraw this way) probably isn't the priority for someone buying securities with the money.
This has been my experience. Cash transferred out of Fidelity to another institution at a much faster pace, fwiw.
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VictorStarr
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Re: Fidelity as a one stop shop

Post by VictorStarr »

anon_investor wrote: Mon Aug 08, 2022 7:21 pm
For new money transferred into Fidelity how soon is it considered available for withdrawal? If you buy SPRXX with new funds does that reset the available to withdraw clock?
It depends. Following are transfer/hold times for my established Fidelity accounts. You should expect longer wait time for a new account, especially for check deposits and ACH pulls.

- Wire transfers are available minutes after transfer completion
- Paycheck direct deposit is available a day earlier than official pay day
- ACH transfers from Schwab Bank and Sofi are available the same business day (if I schedule transfer early enough)
- ACH transfers from Chase and Ally usually are available next business day
- ACH pull to Fidelity or mobile deposit may take 2-5 days to settle but available to trade.

People new to Fidelity are often confused by a difference in "Available to trade" and "Available to withdraw" (check Account/Balances/Summary for details). JoMoney explained the difference between the two in his recent post.
SnowBog
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Re: Fidelity as a one stop shop

Post by SnowBog »

JoMoney wrote: Mon Aug 08, 2022 8:38 pm
SnowBog wrote: Mon Aug 08, 2022 8:20 pm...
As to if "pushing" funds is quicker, I'm not sure if it ultimately matters, or at least hasn't in my experience. The few times I've tried, it seems like the "push" takes a few days before it shows up in Fidelity. Can't recall if it needed a few days to settle in Fidelity, but the few days it took was basically the same as just "pulling" from Fidelity anyway (but without the ability to use those funds in Fidelity before they settled).
It makes a big difference depending on what purpose you plan to use the money for.
If you're transferring the money to Fidelity to withdraw the cash at an ATM, or pay a bill, then you'll want to "push" the money from the other institution. It may take a day or two for it to show up, but it will be immediately available to withdraw (or pay bill, etc..) as soon as it arrives (a day or two later.)
If you're transferring the money to Fidelity to "trade" or buy securities with, you'll probably want to "pull" the money instructing Fidelity to move it from the other account, that way will allow you to trade or buy securities immediately, and being able to withdraw the cash quickly (it will take about a week before it's available to withdraw this way) probably isn't the priority for someone buying securities with the money.
Again, in my case, there is no practical difference between the two.

Example, "pull" from Fidelity first thing Monday, cash immediately available for "trade", but likely takes until Wednesday for withdrawal.

"Push" from another bank first thing Monday, doesn't hit Fidelity until Wednesday, available immediately (I think) to trade or withdraw.

Net result is money isn't available to withdraw for two days (usually).

But not all banks seem to process at the same speed and/or have different cut-off windows for transfer. YMMV
nalor511
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Re: Fidelity as a one stop shop

Post by nalor511 »

arf30 wrote: Mon Aug 08, 2022 7:30 pm The CMA is paying 1.20% interest currently (which must be better than most checking accounts?), it's probably not worth the hassle of manually buying SPRXX unless you're keeping a huge balance.
Except it takes 2 seconds, so no reason not to
sobogled
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Re: Fidelity as a one stop shop

Post by sobogled »

nalor511 wrote: Mon Aug 08, 2022 9:30 pm
arf30 wrote: Mon Aug 08, 2022 7:30 pm The CMA is paying 1.20% interest currently (which must be better than most checking accounts?), it's probably not worth the hassle of manually buying SPRXX unless you're keeping a huge balance.
Except it takes 2 seconds, so no reason not to
Exception being that the CMA is a FDIC insured sweep and SPRXX holds at least a theoretical risk of breaking the buck or suspending transactions.
sobogled
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Re: Fidelity as a one stop shop

Post by sobogled »

VictorStarr wrote: Mon Aug 08, 2022 9:26 pm
anon_investor wrote: Mon Aug 08, 2022 7:21 pm
For new money transferred into Fidelity how soon is it considered available for withdrawal? If you buy SPRXX with new funds does that reset the available to withdraw clock?
It depends. Following are transfer/hold times for my established Fidelity accounts. You should expect longer wait time for a new account, especially for check deposits and ACH pulls.

- Wire transfers are available minutes after transfer completion
- Paycheck direct deposit is available a day earlier than official pay day
- ACH transfers from Schwab Bank and Sofi are available the same business day (if I schedule transfer early enough)
- ACH transfers from Chase and Ally usually are available next business day
- ACH pull to Fidelity or mobile deposit may take 2-5 days to settle but available to trade.

People new to Fidelity are often confused by a difference in "Available to trade" and "Available to withdraw" (check Account/Balances/Summary for details). JoMoney explained the difference between the two in his recent post.
This is the experience one can expect once an account is seasoned. It's the mobile check deposits in particular that can have a ~2-3 day waiting on ability to withdraw, otherwise ACH availability is leading compared to most other traditional bank accounts.
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anon_investor
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Re: Fidelity as a one stop shop

Post by anon_investor »

VictorStarr wrote: Mon Aug 08, 2022 9:26 pm
anon_investor wrote: Mon Aug 08, 2022 7:21 pm
For new money transferred into Fidelity how soon is it considered available for withdrawal? If you buy SPRXX with new funds does that reset the available to withdraw clock?
It depends. Following are transfer/hold times for my established Fidelity accounts. You should expect longer wait time for a new account, especially for check deposits and ACH pulls.

- Wire transfers are available minutes after transfer completion
- Paycheck direct deposit is available a day earlier than official pay day
- ACH transfers from Schwab Bank and Sofi are available the same business day (if I schedule transfer early enough)
- ACH transfers from Chase and Ally usually are available next business day
- ACH pull to Fidelity or mobile deposit may take 2-5 days to settle but available to trade.

People new to Fidelity are often confused by a difference in "Available to trade" and "Available to withdraw" (check Account/Balances/Summary for details). JoMoney explained the difference between the two in his recent post.
When you say ACH transfers from Ally, are you initiating them from Fidelity or pushing them from Ally?
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VictorStarr
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Re: Fidelity as a one stop shop

Post by VictorStarr »

anon_investor wrote: Mon Aug 08, 2022 9:42 pm When you say ACH transfers from Ally, are you initiating them from Fidelity or pushing them from Ally?
Pushing from Ally. Pull always takes longer.
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VictorStarr
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Re: Fidelity as a one stop shop

Post by VictorStarr »

VictorStarr wrote: Mon Aug 08, 2022 9:48 pm
anon_investor wrote: Mon Aug 08, 2022 9:42 pm When you say ACH transfers from Ally, are you initiating them from Fidelity or pushing them from Ally?
Pushing from Ally. Pull always takes longer.
With new account, expect delays during first 30-90 days.
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anon_investor
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Re: Fidelity as a one stop shop

Post by anon_investor »

VictorStarr wrote: Mon Aug 08, 2022 9:49 pm
VictorStarr wrote: Mon Aug 08, 2022 9:48 pm
anon_investor wrote: Mon Aug 08, 2022 9:42 pm When you say ACH transfers from Ally, are you initiating them from Fidelity or pushing them from Ally?
Pushing from Ally. Pull always takes longer.
With new account, expect delays during first 30-90 days.
So you linked Fidelity CMA to Ally via micro deposits?
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VictorStarr
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Re: Fidelity as a one stop shop

Post by VictorStarr »

anon_investor wrote: Mon Aug 08, 2022 9:59 pm
VictorStarr wrote: Mon Aug 08, 2022 9:49 pm
VictorStarr wrote: Mon Aug 08, 2022 9:48 pm
anon_investor wrote: Mon Aug 08, 2022 9:42 pm When you say ACH transfers from Ally, are you initiating them from Fidelity or pushing them from Ally?
Pushing from Ally. Pull always takes longer.
With new account, expect delays during first 30-90 days.
So you linked Fidelity CMA to Ally via micro deposits?
Yes, with micro deposits. I do not use Plaid.
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anon_investor
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Re: Fidelity as a one stop shop

Post by anon_investor »

VictorStarr wrote: Mon Aug 08, 2022 10:18 pm
anon_investor wrote: Mon Aug 08, 2022 9:59 pm
VictorStarr wrote: Mon Aug 08, 2022 9:49 pm
VictorStarr wrote: Mon Aug 08, 2022 9:48 pm
anon_investor wrote: Mon Aug 08, 2022 9:42 pm When you say ACH transfers from Ally, are you initiating them from Fidelity or pushing them from Ally?
Pushing from Ally. Pull always takes longer.
With new account, expect delays during first 30-90 days.
So you linked Fidelity CMA to Ally via micro deposits?
Yes, with micro deposits. I do not use Plaid.
Excellent, one more set of micro deposits for me to set up. I plan to use my CMA to pay bills, so having the money immediately available for withdrawal will be useful.
need403bhelp
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Re: Fidelity as a one stop shop

Post by need403bhelp »

sobogled wrote: Mon Aug 08, 2022 9:35 pm
nalor511 wrote: Mon Aug 08, 2022 9:30 pm
arf30 wrote: Mon Aug 08, 2022 7:30 pm The CMA is paying 1.20% interest currently (which must be better than most checking accounts?), it's probably not worth the hassle of manually buying SPRXX unless you're keeping a huge balance.
Except it takes 2 seconds, so no reason not to
Exception being that the CMA is a FDIC insured sweep and SPRXX holds at least a theoretical risk of breaking the buck or suspending transactions.
Is there a treasury alternative money market fund (ie that only invests in instruments that have full faith and credit of US govt and can’t break the buck) that pays more than FDIC insured sweep but less than SPRXX? Ok if needs >$100k deposited initially.

Also, do I understand correctly that funds pushed in from external sources automatically go to FDIC insured sweep, even if SPRXX or some other money market fund is set as core position?

Debating changing my primary checking account to Fidelity or to SoFi. Seems more tempting than my current account paying 0.1% interest .
Bones212
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Re: Fidelity as a one stop shop

Post by Bones212 »

I am in a bit of a unique situation. I have a business with a very large balance at a regular bank.

I would like to have a business account at Fidelity that would allow me to arrange for ACH transfers on a regular basis and on occasion write checks. I probably won't need more than 2 to 3 checks written a month since everything in my industry is ACH oriented.

Can I open up that type of business account with Fidelity? I would like to move all my accounts that I have with E-Trade to Fidelity and narrow things down so that I just have Fidelity for everything except for my HSA. Thanks a ton for everything folks. Hope you're having an awesome summer.
sobogled
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Re: Fidelity as a one stop shop

Post by sobogled »

need403bhelp wrote: Tue Aug 09, 2022 10:16 am
sobogled wrote: Mon Aug 08, 2022 9:35 pm
nalor511 wrote: Mon Aug 08, 2022 9:30 pm
arf30 wrote: Mon Aug 08, 2022 7:30 pm The CMA is paying 1.20% interest currently (which must be better than most checking accounts?), it's probably not worth the hassle of manually buying SPRXX unless you're keeping a huge balance.
Except it takes 2 seconds, so no reason not to
Exception being that the CMA is a FDIC insured sweep and SPRXX holds at least a theoretical risk of breaking the buck or suspending transactions.
Is there a treasury alternative money market fund (ie that only invests in instruments that have full faith and credit of US govt and can’t break the buck) that pays more than FDIC insured sweep but less than SPRXX? Ok if needs >$100k deposited initially.

Also, do I understand correctly that funds pushed in from external sources automatically go to FDIC insured sweep, even if SPRXX or some other money market fund is set as core position?

Debating changing my primary checking account to Fidelity or to SoFi. Seems more tempting than my current account paying 0.1% interest .
For the cash management account, the FDIC sweep is the core position, so yes funds will go there. This is different than the brokerage account where the money market fund selection can be core.

SPAXX is a good option that cannot be suspended although still has a theoretical break the buck risk from the small position in agency notes. FDLXX is a treasury only option.

IMHO the Fidelity route provides a great flexibility (different funds, brokered CDs, etc) and a stability (relatively unchanged offering, unlike SoFi which has been more fickle). The downside is that generally, there's a FDIC insured savings out there somewhere that pays nearly what Fidelity Money Market funds return, so it can feel like a strange risk-reward tradeoff.
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anon_investor
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Re: Fidelity as a one stop shop

Post by anon_investor »

sobogled wrote: Tue Aug 09, 2022 11:08 am
need403bhelp wrote: Tue Aug 09, 2022 10:16 am
sobogled wrote: Mon Aug 08, 2022 9:35 pm
nalor511 wrote: Mon Aug 08, 2022 9:30 pm
arf30 wrote: Mon Aug 08, 2022 7:30 pm The CMA is paying 1.20% interest currently (which must be better than most checking accounts?), it's probably not worth the hassle of manually buying SPRXX unless you're keeping a huge balance.
Except it takes 2 seconds, so no reason not to
Exception being that the CMA is a FDIC insured sweep and SPRXX holds at least a theoretical risk of breaking the buck or suspending transactions.
Is there a treasury alternative money market fund (ie that only invests in instruments that have full faith and credit of US govt and can’t break the buck) that pays more than FDIC insured sweep but less than SPRXX? Ok if needs >$100k deposited initially.

Also, do I understand correctly that funds pushed in from external sources automatically go to FDIC insured sweep, even if SPRXX or some other money market fund is set as core position?

Debating changing my primary checking account to Fidelity or to SoFi. Seems more tempting than my current account paying 0.1% interest .
For the cash management account, the FDIC sweep is the core position, so yes funds will go there. This is different than the brokerage account where the money market fund selection can be core.

SPAXX is a good option that cannot be suspended although still has a theoretical break the buck risk from the small position in agency notes. FDLXX is a treasury only option.

IMHO the Fidelity route provides a great flexibility (different funds, brokered CDs, etc) and a stability (relatively unchanged offering, unlike SoFi which has been more fickle). The downside is that generally, there's a FDIC insured savings out there somewhere that pays nearly what Fidelity Money Market funds return, so it can feel like a strange risk-reward tradeoff.
FZFXX would be a better option that SPAXX right now. It pays a higher yield and only holds cash, treasuries and repurchase agreements collateralized by treasuries or cash. SPAXX also holds agency debt which does not have the full faith and credit of the US govt.
sobogled
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Re: Fidelity as a one stop shop

Post by sobogled »

anon_investor wrote: Tue Aug 09, 2022 11:40 am
sobogled wrote: Tue Aug 09, 2022 11:08 am
need403bhelp wrote: Tue Aug 09, 2022 10:16 am
sobogled wrote: Mon Aug 08, 2022 9:35 pm
nalor511 wrote: Mon Aug 08, 2022 9:30 pm

Except it takes 2 seconds, so no reason not to
Exception being that the CMA is a FDIC insured sweep and SPRXX holds at least a theoretical risk of breaking the buck or suspending transactions.
Is there a treasury alternative money market fund (ie that only invests in instruments that have full faith and credit of US govt and can’t break the buck) that pays more than FDIC insured sweep but less than SPRXX? Ok if needs >$100k deposited initially.

Also, do I understand correctly that funds pushed in from external sources automatically go to FDIC insured sweep, even if SPRXX or some other money market fund is set as core position?

Debating changing my primary checking account to Fidelity or to SoFi. Seems more tempting than my current account paying 0.1% interest .
For the cash management account, the FDIC sweep is the core position, so yes funds will go there. This is different than the brokerage account where the money market fund selection can be core.

SPAXX is a good option that cannot be suspended although still has a theoretical break the buck risk from the small position in agency notes. FDLXX is a treasury only option.

IMHO the Fidelity route provides a great flexibility (different funds, brokered CDs, etc) and a stability (relatively unchanged offering, unlike SoFi which has been more fickle). The downside is that generally, there's a FDIC insured savings out there somewhere that pays nearly what Fidelity Money Market funds return, so it can feel like a strange risk-reward tradeoff.
FZFXX would be a better option that SPAXX right now. It pays a higher yield and only holds cash, treasuries and repurchase agreements collateralized by treasuries or cash. SPAXX also holds agency debt which does not have the full faith and credit of the US govt.
Yeah to connect, I think the risk levels greatest to least would be SPAXX -> FZFXX -> FDLXX. FZFXX could suffer from a fallout in the repo market, but again it's arguably theoretical and we'll all have bigger problems if these fund fall through.
need403bhelp
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Re: Fidelity as a one stop shop

Post by need403bhelp »

sobogled wrote: Tue Aug 09, 2022 11:08 am
need403bhelp wrote: Tue Aug 09, 2022 10:16 am
sobogled wrote: Mon Aug 08, 2022 9:35 pm
nalor511 wrote: Mon Aug 08, 2022 9:30 pm
arf30 wrote: Mon Aug 08, 2022 7:30 pm The CMA is paying 1.20% interest currently (which must be better than most checking accounts?), it's probably not worth the hassle of manually buying SPRXX unless you're keeping a huge balance.
Except it takes 2 seconds, so no reason not to
Exception being that the CMA is a FDIC insured sweep and SPRXX holds at least a theoretical risk of breaking the buck or suspending transactions.
Is there a treasury alternative money market fund (ie that only invests in instruments that have full faith and credit of US govt and can’t break the buck) that pays more than FDIC insured sweep but less than SPRXX? Ok if needs >$100k deposited initially.

Also, do I understand correctly that funds pushed in from external sources automatically go to FDIC insured sweep, even if SPRXX or some other money market fund is set as core position?

Debating changing my primary checking account to Fidelity or to SoFi. Seems more tempting than my current account paying 0.1% interest .
For the cash management account, the FDIC sweep is the core position, so yes funds will go there. This is different than the brokerage account where the money market fund selection can be core.

SPAXX is a good option that cannot be suspended although still has a theoretical break the buck risk from the small position in agency notes. FDLXX is a treasury only option.

IMHO the Fidelity route provides a great flexibility (different funds, brokered CDs, etc) and a stability (relatively unchanged offering, unlike SoFi which has been more fickle). The downside is that generally, there's a FDIC insured savings out there somewhere that pays nearly what Fidelity Money Market funds return, so it can feel like a strange risk-reward tradeoff.
Ok, thanks. Re "This is different than the brokerage account where the money market fund selection can be core," someone had mentioned that it is possible to get check writing ability, debit cards, ATM card, etc. for brokerage account and that only difference between CMA and brokerage in this case is reimbursement of ATM fees. Is this correct? If so, would one be able to do the brokerage account with all of these features and use FZFXX as core position, then ACH push directly into that and have money go into FZFXX automatically?
nalor511
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Re: Fidelity as a one stop shop

Post by nalor511 »

need403bhelp wrote: Tue Aug 09, 2022 12:35 pm
sobogled wrote: Tue Aug 09, 2022 11:08 am
need403bhelp wrote: Tue Aug 09, 2022 10:16 am
sobogled wrote: Mon Aug 08, 2022 9:35 pm
nalor511 wrote: Mon Aug 08, 2022 9:30 pm

Except it takes 2 seconds, so no reason not to
Exception being that the CMA is a FDIC insured sweep and SPRXX holds at least a theoretical risk of breaking the buck or suspending transactions.
Is there a treasury alternative money market fund (ie that only invests in instruments that have full faith and credit of US govt and can’t break the buck) that pays more than FDIC insured sweep but less than SPRXX? Ok if needs >$100k deposited initially.

Also, do I understand correctly that funds pushed in from external sources automatically go to FDIC insured sweep, even if SPRXX or some other money market fund is set as core position?

Debating changing my primary checking account to Fidelity or to SoFi. Seems more tempting than my current account paying 0.1% interest .
For the cash management account, the FDIC sweep is the core position, so yes funds will go there. This is different than the brokerage account where the money market fund selection can be core.

SPAXX is a good option that cannot be suspended although still has a theoretical break the buck risk from the small position in agency notes. FDLXX is a treasury only option.

IMHO the Fidelity route provides a great flexibility (different funds, brokered CDs, etc) and a stability (relatively unchanged offering, unlike SoFi which has been more fickle). The downside is that generally, there's a FDIC insured savings out there somewhere that pays nearly what Fidelity Money Market funds return, so it can feel like a strange risk-reward tradeoff.
Ok, thanks. Re "This is different than the brokerage account where the money market fund selection can be core," someone had mentioned that it is possible to get check writing ability, debit cards, ATM card, etc. for brokerage account and that only difference between CMA and brokerage in this case is reimbursement of ATM fees. Is this correct? If so, would one be able to do the brokerage account with all of these features and use FZFXX as core position, then ACH push directly into that and have money go into FZFXX automatically?
If you want to automate that part, just do what was suggested many times already, keep all the $ and deposits into the brokerage, and keep $0 in the CMA with overdraft turned on to use the brokerage for the overdraft, and have withdrawals only on the CMA so you get ATM reimbursement, and if you ever have a fraud issue you can just flip the overdraft off and your brokerage is insulated.
need403bhelp
Posts: 1636
Joined: Thu May 28, 2015 6:25 pm

Re: Fidelity as a one stop shop

Post by need403bhelp »

nalor511 wrote: Tue Aug 09, 2022 12:38 pm
need403bhelp wrote: Tue Aug 09, 2022 12:35 pm
sobogled wrote: Tue Aug 09, 2022 11:08 am
need403bhelp wrote: Tue Aug 09, 2022 10:16 am
sobogled wrote: Mon Aug 08, 2022 9:35 pm

Exception being that the CMA is a FDIC insured sweep and SPRXX holds at least a theoretical risk of breaking the buck or suspending transactions.
Is there a treasury alternative money market fund (ie that only invests in instruments that have full faith and credit of US govt and can’t break the buck) that pays more than FDIC insured sweep but less than SPRXX? Ok if needs >$100k deposited initially.

Also, do I understand correctly that funds pushed in from external sources automatically go to FDIC insured sweep, even if SPRXX or some other money market fund is set as core position?

Debating changing my primary checking account to Fidelity or to SoFi. Seems more tempting than my current account paying 0.1% interest .
For the cash management account, the FDIC sweep is the core position, so yes funds will go there. This is different than the brokerage account where the money market fund selection can be core.

SPAXX is a good option that cannot be suspended although still has a theoretical break the buck risk from the small position in agency notes. FDLXX is a treasury only option.

IMHO the Fidelity route provides a great flexibility (different funds, brokered CDs, etc) and a stability (relatively unchanged offering, unlike SoFi which has been more fickle). The downside is that generally, there's a FDIC insured savings out there somewhere that pays nearly what Fidelity Money Market funds return, so it can feel like a strange risk-reward tradeoff.
Ok, thanks. Re "This is different than the brokerage account where the money market fund selection can be core," someone had mentioned that it is possible to get check writing ability, debit cards, ATM card, etc. for brokerage account and that only difference between CMA and brokerage in this case is reimbursement of ATM fees. Is this correct? If so, would one be able to do the brokerage account with all of these features and use FZFXX as core position, then ACH push directly into that and have money go into FZFXX automatically?
If you want to automate that part, just do what was suggested many times already, keep all the $ and deposits into the brokerage, and keep $0 in the CMA with overdraft turned on to use the brokerage for the overdraft, and have withdrawals only on the CMA so you get ATM reimbursement, and if you ever have a fraud issue you can just flip the overdraft off and your brokerage is insulated.
Fair enough. Can you do direct deposit into the brokerage account (I assume yes as even Vanguard lets you do that, or at least used to let you)? What about trial deposits?

Also, to be thorough, I tried to look at other brokerages but looks like Schwab only pays 0.25% APY for their checking account sweep (https://www.schwab.com/checking) whereas Fidelity CMA has 1.2%. I wonder if there's a place to compare brokerage yields? Obviously, Vanguard doesn't have one, but I wonder if TD Ameritrade or E-Trade or some other brokerages might have competitive yields on pseudo-checking accounts?
nalor511
Posts: 5016
Joined: Mon Jul 27, 2015 1:00 am

Re: Fidelity as a one stop shop

Post by nalor511 »

need403bhelp wrote: Tue Aug 09, 2022 2:18 pm
nalor511 wrote: Tue Aug 09, 2022 12:38 pm
need403bhelp wrote: Tue Aug 09, 2022 12:35 pm
sobogled wrote: Tue Aug 09, 2022 11:08 am
need403bhelp wrote: Tue Aug 09, 2022 10:16 am

Is there a treasury alternative money market fund (ie that only invests in instruments that have full faith and credit of US govt and can’t break the buck) that pays more than FDIC insured sweep but less than SPRXX? Ok if needs >$100k deposited initially.

Also, do I understand correctly that funds pushed in from external sources automatically go to FDIC insured sweep, even if SPRXX or some other money market fund is set as core position?

Debating changing my primary checking account to Fidelity or to SoFi. Seems more tempting than my current account paying 0.1% interest .
For the cash management account, the FDIC sweep is the core position, so yes funds will go there. This is different than the brokerage account where the money market fund selection can be core.

SPAXX is a good option that cannot be suspended although still has a theoretical break the buck risk from the small position in agency notes. FDLXX is a treasury only option.

IMHO the Fidelity route provides a great flexibility (different funds, brokered CDs, etc) and a stability (relatively unchanged offering, unlike SoFi which has been more fickle). The downside is that generally, there's a FDIC insured savings out there somewhere that pays nearly what Fidelity Money Market funds return, so it can feel like a strange risk-reward tradeoff.
Ok, thanks. Re "This is different than the brokerage account where the money market fund selection can be core," someone had mentioned that it is possible to get check writing ability, debit cards, ATM card, etc. for brokerage account and that only difference between CMA and brokerage in this case is reimbursement of ATM fees. Is this correct? If so, would one be able to do the brokerage account with all of these features and use FZFXX as core position, then ACH push directly into that and have money go into FZFXX automatically?
If you want to automate that part, just do what was suggested many times already, keep all the $ and deposits into the brokerage, and keep $0 in the CMA with overdraft turned on to use the brokerage for the overdraft, and have withdrawals only on the CMA so you get ATM reimbursement, and if you ever have a fraud issue you can just flip the overdraft off and your brokerage is insulated.
Fair enough. Can you do direct deposit into the brokerage account (I assume yes as even Vanguard lets you do that, or at least used to let you)? What about trial deposits?

Also, to be thorough, I tried to look at other brokerages but looks like Schwab only pays 0.25% APY for their checking account sweep (https://www.schwab.com/checking) whereas Fidelity CMA has 1.2%. I wonder if there's a place to compare brokerage yields? Obviously, Vanguard doesn't have one, but I wonder if TD Ameritrade or E-Trade or some other brokerages might have competitive yields on pseudo-checking accounts?
Yes. And Fidelity CMA (or brokerage) pays almost 2% if you buy sprxx
sobogled
Posts: 37
Joined: Wed Apr 13, 2022 3:11 pm

Re: Fidelity as a one stop shop

Post by sobogled »

need403bhelp wrote: Tue Aug 09, 2022 2:18 pm
nalor511 wrote: Tue Aug 09, 2022 12:38 pm
need403bhelp wrote: Tue Aug 09, 2022 12:35 pm
sobogled wrote: Tue Aug 09, 2022 11:08 am
need403bhelp wrote: Tue Aug 09, 2022 10:16 am

Is there a treasury alternative money market fund (ie that only invests in instruments that have full faith and credit of US govt and can’t break the buck) that pays more than FDIC insured sweep but less than SPRXX? Ok if needs >$100k deposited initially.

Also, do I understand correctly that funds pushed in from external sources automatically go to FDIC insured sweep, even if SPRXX or some other money market fund is set as core position?

Debating changing my primary checking account to Fidelity or to SoFi. Seems more tempting than my current account paying 0.1% interest .
For the cash management account, the FDIC sweep is the core position, so yes funds will go there. This is different than the brokerage account where the money market fund selection can be core.

SPAXX is a good option that cannot be suspended although still has a theoretical break the buck risk from the small position in agency notes. FDLXX is a treasury only option.

IMHO the Fidelity route provides a great flexibility (different funds, brokered CDs, etc) and a stability (relatively unchanged offering, unlike SoFi which has been more fickle). The downside is that generally, there's a FDIC insured savings out there somewhere that pays nearly what Fidelity Money Market funds return, so it can feel like a strange risk-reward tradeoff.
Ok, thanks. Re "This is different than the brokerage account where the money market fund selection can be core," someone had mentioned that it is possible to get check writing ability, debit cards, ATM card, etc. for brokerage account and that only difference between CMA and brokerage in this case is reimbursement of ATM fees. Is this correct? If so, would one be able to do the brokerage account with all of these features and use FZFXX as core position, then ACH push directly into that and have money go into FZFXX automatically?
If you want to automate that part, just do what was suggested many times already, keep all the $ and deposits into the brokerage, and keep $0 in the CMA with overdraft turned on to use the brokerage for the overdraft, and have withdrawals only on the CMA so you get ATM reimbursement, and if you ever have a fraud issue you can just flip the overdraft off and your brokerage is insulated.
Fair enough. Can you do direct deposit into the brokerage account (I assume yes as even Vanguard lets you do that, or at least used to let you)? What about trial deposits?

Also, to be thorough, I tried to look at other brokerages but looks like Schwab only pays 0.25% APY for their checking account sweep (https://www.schwab.com/checking) whereas Fidelity CMA has 1.2%. I wonder if there's a place to compare brokerage yields? Obviously, Vanguard doesn't have one, but I wonder if TD Ameritrade or E-Trade or some other brokerages might have competitive yields on pseudo-checking accounts?
This 'Fidelity as a one stop shop' thread has the number of posts it does because it's a rare combination across the market. E-Trade offers a standard FDIC checking/savings arrangement, although right now the savings is at 2.0%. TDA's cash sweep usually mirrors typical large bank checking rates.
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