Fidelity as a one stop shop

Non-investing personal finance issues including insurance, credit, real estate, taxes, employment and legal issues such as trusts and wills.
Blue456
Posts: 2152
Joined: Tue Jun 04, 2019 5:46 am

Re: Fidelity as a one stop shop

Post by Blue456 »

Can someone confirm that they were able to set up CMA account with $0 money that overdrafts onto brokerage account margin? Essentially I would like to use margin to withdraw money from ATM.
tj
Posts: 9368
Joined: Wed Dec 23, 2009 11:10 pm

Re: Fidelity as a one stop shop

Post by tj »

Blue456 wrote: Sun Aug 14, 2022 9:05 am Can someone confirm that they were able to set up CMA account with $0 money that overdrafts onto brokerage account margin? Essentially I would like to use margin to withdraw money from ATM.

If you keep it at $0, they will close it eventually.
mervinj7
Posts: 2496
Joined: Thu Mar 27, 2014 3:10 pm

Re: Fidelity as a one stop shop

Post by mervinj7 »

Blue456 wrote: Sun Aug 14, 2022 9:05 am Can someone confirm that they were able to set up CMA account with $0 money that overdrafts onto brokerage account margin? Essentially I would like to use margin to withdraw money from ATM.
Oh boy...
Blue456
Posts: 2152
Joined: Tue Jun 04, 2019 5:46 am

Re: Fidelity as a one stop shop

Post by Blue456 »

tj wrote: Sun Aug 14, 2022 9:07 am
Blue456 wrote: Sun Aug 14, 2022 9:05 am Can someone confirm that they were able to set up CMA account with $0 money that overdrafts onto brokerage account margin? Essentially I would like to use margin to withdraw money from ATM.

If you keep it at $0, they will close it eventually.
I had both brokerage and CMA at zero for a year without issues.
tj
Posts: 9368
Joined: Wed Dec 23, 2009 11:10 pm

Re: Fidelity as a one stop shop

Post by tj »

Blue456 wrote: Sun Aug 14, 2022 9:10 am
tj wrote: Sun Aug 14, 2022 9:07 am
Blue456 wrote: Sun Aug 14, 2022 9:05 am Can someone confirm that they were able to set up CMA account with $0 money that overdrafts onto brokerage account margin? Essentially I would like to use margin to withdraw money from ATM.

If you keep it at $0, they will close it eventually.
I had both brokerage and CMA at zero for a year without issues.
I did too. Multiple years. They still eventually close them.
User avatar
JoMoney
Posts: 16260
Joined: Tue Jul 23, 2013 5:31 am

Re: Fidelity as a one stop shop

Post by JoMoney »

tj wrote: Sun Aug 14, 2022 9:07 am
Blue456 wrote: Sun Aug 14, 2022 9:05 am Can someone confirm that they were able to set up CMA account with $0 money that overdrafts onto brokerage account margin? Essentially I would like to use margin to withdraw money from ATM.

If you keep it at $0, they will close it eventually.
Not if you're actually using it, there will be transactions and it won't be persistently at "$0" even if you're only withdrawing via margin on a different account, after the pending withdrawal settlement it will return to $0, but they're not going to close a customers account that has activity and has funds in other accounts. There are a couple users on here that have claimed to stop using their CMA account years ago, don't have a balance on it, haven't had activity in it, and it's remained open and available to them should they want to use it.

If there was absolutely no activity in any account with them though, one should be concerned about forced escheatment by the state.
"To achieve satisfactory investment results is easier than most people realize; to achieve superior results is harder than it looks." - Benjamin Graham
User avatar
JoMoney
Posts: 16260
Joined: Tue Jul 23, 2013 5:31 am

Re: Fidelity as a one stop shop

Post by JoMoney »

bawr wrote: Sun Aug 14, 2022 8:21 am
iskey wrote: Sat Aug 13, 2022 7:35 am Seeing as MM accounts including SPRXX has yielded .01% the majority of years 2012-2022, with increases in 2017-2019 and 2022, my question is, is this a strategy worth doing during times of low yield? Does anyone plan on moving their everyday expenses out of Fidelity if/when yield drops back down?
...
Real interest rates are lower now than they were in the previous decade. The only way to attempt to maintain your purchasing power under these circumstances is to have exposure to risk assets.

Image
Worth noting that TIPS now have positive real yields, with principal, CPI adjustment, and interest guaranteed by US Government. Term "risk" can be mitigated by appropriately matching duration/maturity of holdings, and maybe considered about as close as you can get to "risk free".
"To achieve satisfactory investment results is easier than most people realize; to achieve superior results is harder than it looks." - Benjamin Graham
User avatar
drumboy256
Posts: 673
Joined: Sat Jun 06, 2020 2:21 pm

Re: Fidelity as a one stop shop

Post by drumboy256 »

Hey folks,

I'm working on migrating all of the finances over to Fidelity to have it be the one stop shop and I'm a bit perplexed.

I moved $20 bucks over to my CMA account and have $10 settled in SPRXX and $10 settled in CORE FDIC Insured Sweep. For kicks, I paid $1.00 to my Chase CC via setting up via the routing and account number similar to how I have my bank setup right now.

The odd thing is Chase is showing the $1.00 as "paid". I have 0 account history of any debits from my positions nor any errors on the Chase side. Do I need money in an "equity" position (mutual fund or ETF) asset that gets "sold" in order to provide the $1.00 payment to Chase?

Seems a bit odd.... but perhaps it takes a few days to settle? :confused
Promise is one thing. Fulfilling that promise is quite another. - Sir Alex Ferguson | 20% IVV / 40% IBIT / 20% IXUS / 20% VGLT + chill
User avatar
VictorStarr
Posts: 746
Joined: Sat Jan 04, 2020 9:13 pm
Location: Washington

Re: Fidelity as a one stop shop

Post by VictorStarr »

drumboy256 wrote: Sun Aug 14, 2022 6:35 pm Hey folks,

I'm working on migrating all of the finances over to Fidelity to have it be the one stop shop and I'm a bit perplexed.

I moved $20 bucks over to my CMA account and have $10 settled in SPRXX and $10 settled in CORE FDIC Insured Sweep. For kicks, I paid $1.00 to my Chase CC via setting up via the routing and account number similar to how I have my bank setup right now.

The odd thing is Chase is showing the $1.00 as "paid". I have 0 account history of any debits from my positions nor any errors on the Chase side. Do I need money in an "equity" position (mutual fund or ETF) asset that gets "sold" in order to provide the $1.00 payment to Chase?

Seems a bit odd.... but perhaps it takes a few days to settle? :confused
Either CMA core FDIC position or settled SPRXX maybe used for payments and withdrawals.
Chase would show amount as paid on the same day a payment was made.
It takes time to withdraw money from payee account, 1-2 business days. If you paid on Friday, you'll see debit from CMA account on Monday or Tuesday.
User avatar
drumboy256
Posts: 673
Joined: Sat Jun 06, 2020 2:21 pm

Re: Fidelity as a one stop shop

Post by drumboy256 »

VictorStarr wrote: Sun Aug 14, 2022 6:45 pm
drumboy256 wrote: Sun Aug 14, 2022 6:35 pm Hey folks,

I'm working on migrating all of the finances over to Fidelity to have it be the one stop shop and I'm a bit perplexed.

I moved $20 bucks over to my CMA account and have $10 settled in SPRXX and $10 settled in CORE FDIC Insured Sweep. For kicks, I paid $1.00 to my Chase CC via setting up via the routing and account number similar to how I have my bank setup right now.

The odd thing is Chase is showing the $1.00 as "paid". I have 0 account history of any debits from my positions nor any errors on the Chase side. Do I need money in an "equity" position (mutual fund or ETF) asset that gets "sold" in order to provide the $1.00 payment to Chase?

Seems a bit odd.... but perhaps it takes a few days to settle? :confused
Either CMA core FDIC position or settled SPRXX maybe used for payments and withdrawals.
Chase would show amount as paid on the same day a payment was made.
It takes time to withdraw money from payee account, 1-2 business days. If you paid on Friday, you'll see debit from CMA account on Monday or Tuesday.
Good deal, was making sure I didn’t miss something :sharebeer
Promise is one thing. Fulfilling that promise is quite another. - Sir Alex Ferguson | 20% IVV / 40% IBIT / 20% IXUS / 20% VGLT + chill
User avatar
JoMoney
Posts: 16260
Joined: Tue Jul 23, 2013 5:31 am

Re: Fidelity as a one stop shop

Post by JoMoney »

drumboy256 wrote: Sun Aug 14, 2022 6:35 pm... Do I need money in an "equity" position (mutual fund or ETF) asset that gets "sold" in order to provide the $1.00 payment to Chase? ...
No. Securities like stocks/funds/ETFs are not available cash and can not be debited/spent as such. Only "available" cash, which includes money market funds. If you used your ATM/debit card you would see the "pending" withdrawal almost immediately, if you did some sort of ACH pull from Chase that might take a couple days to show up in your Fidelity account, ACH transactions take a couple business days to settle, it would appear that Chase is just crediting you under the expectation that it will settle.
"To achieve satisfactory investment results is easier than most people realize; to achieve superior results is harder than it looks." - Benjamin Graham
User avatar
drumboy256
Posts: 673
Joined: Sat Jun 06, 2020 2:21 pm

Re: Fidelity as a one stop shop

Post by drumboy256 »

JoMoney wrote: Sun Aug 14, 2022 7:08 pm
drumboy256 wrote: Sun Aug 14, 2022 6:35 pm... Do I need money in an "equity" position (mutual fund or ETF) asset that gets "sold" in order to provide the $1.00 payment to Chase? ...
No. Securities like stocks/funds/ETFs are not available cash and can not be debited/spent as such. Only "available" cash, which includes money market funds. If you used your ATM/debit card you would see the "pending" withdrawal almost immediately, if you did some sort of ACH pull from Chase that might take a couple days to show up in your Fidelity account, ACH transactions take a couple business days to settle, it would appear that Chase is just crediting you under the expectation that it will settle.
Good deal. Another plus I noticed is the cash had not fully settled when Chase credited the $1.00 payment which means Fidelity definitely has a floating account of money somewhere that is "slushing" around to cover costs as funds via ETF are transferred. :beer
Promise is one thing. Fulfilling that promise is quite another. - Sir Alex Ferguson | 20% IVV / 40% IBIT / 20% IXUS / 20% VGLT + chill
User avatar
JoMoney
Posts: 16260
Joined: Tue Jul 23, 2013 5:31 am

Re: Fidelity as a one stop shop

Post by JoMoney »

drumboy256 wrote: Sun Aug 14, 2022 7:13 pm
JoMoney wrote: Sun Aug 14, 2022 7:08 pm
drumboy256 wrote: Sun Aug 14, 2022 6:35 pm... Do I need money in an "equity" position (mutual fund or ETF) asset that gets "sold" in order to provide the $1.00 payment to Chase? ...
No. Securities like stocks/funds/ETFs are not available cash and can not be debited/spent as such. Only "available" cash, which includes money market funds. If you used your ATM/debit card you would see the "pending" withdrawal almost immediately, if you did some sort of ACH pull from Chase that might take a couple days to show up in your Fidelity account, ACH transactions take a couple business days to settle, it would appear that Chase is just crediting you under the expectation that it will settle.
Good deal. Another plus I noticed is the cash had not fully settled when Chase credited the $1.00 payment which means Fidelity definitely has a floating account of money somewhere that is "slushing" around to cover costs as funds via ETF are transferred. :beer
Of course it hasn't "settled", an ACH pull like you setup with Chase takes several business days to happen. FIdelity probably hasn't even seen the request yet to clear that the funds are available to transfer. It could still "bounce" if you withdrew the money from your Fidelity account, and you'd be hearing back from Chase that your request to transfer the money failed (despite them giving you a provisional credit right now.)
"To achieve satisfactory investment results is easier than most people realize; to achieve superior results is harder than it looks." - Benjamin Graham
careerdata
Posts: 332
Joined: Sat Sep 09, 2017 7:12 pm

Re: Fidelity as a one stop shop

Post by careerdata »

drumboy256 wrote: Sun Aug 14, 2022 6:35 pm Hey folks,

I'm working on migrating all of the finances over to Fidelity to have it be the one stop shop and I'm a bit perplexed.

I moved $20 bucks over to my CMA account and have $10 settled in SPRXX and $10 settled in CORE FDIC Insured Sweep. For kicks, I paid $1.00 to my Chase CC via setting up via the routing and account number similar to how I have my bank setup right now.

The odd thing is Chase is showing the $1.00 as "paid". I have 0 account history of any debits from my positions nor any errors on the Chase side. Do I need money in an "equity" position (mutual fund or ETF) asset that gets "sold" in order to provide the $1.00 payment to Chase?

Seems a bit odd.... but perhaps it takes a few days to settle? :confused
Thank you for sharing your experience! I am trying to do something similar to you, but I am initially seeing if I can leave the CMA at $0.00 and keep the money market dollars in our Fidelity brokerage account. Last Thursday / Friday I did micro contributions to all six of our credit cards after linking the credit cards to the CMA. This morning I received a text from Fidelity that showed all six micropayments were processing and the combined amount of that would be coming from our Fidelity brokerage account. So today I made the rest of the payments to get to the statement balance so no interest would be charged.

I also set up email alerts and this is the applicable section from the email sent in the early AM hours today:

"If you initiated a transaction from your Fidelity Cash Management Account, and didn't have the available funds, then we will automatically transfer the required funds from another Fidelity Account. You enabled this overdraft feature when you opened your Cash Management Account."

So...so far so good with the plan to move almost all of our regular banking to Fidelity while keeping enough balance in our new Merrill Edge brokerage account so that we can a) keep BofA as a brick-and-mortar option with no account maintenance fees and b) get better cash rewards with our new Customized Cash credit card. Many BH community members helped me get to this point with very helpful tips and suggestions, including this thread!

I had set up my wife's paycheck to direct deposit to the CMA but now I am thinking it might be cleaner to instead send that to our Fidelity brokerage account and let the overdraft feature work its magic so that we can keep the money market funds in SPRXX as long as possible and also not have two brokerage accounts with Fidelity.

If everything completes successfully over the next couple of days between Fidelity and the six credit cards then I will update this response in case someone else is looking for an example before testing it themselves.

Regards,

Joe
User avatar
anon_investor
Posts: 15122
Joined: Mon Jun 03, 2019 1:43 pm

Re: Fidelity as a one stop shop

Post by anon_investor »

careerdata wrote: Mon Aug 15, 2022 8:25 pm
drumboy256 wrote: Sun Aug 14, 2022 6:35 pm Hey folks,

I'm working on migrating all of the finances over to Fidelity to have it be the one stop shop and I'm a bit perplexed.

I moved $20 bucks over to my CMA account and have $10 settled in SPRXX and $10 settled in CORE FDIC Insured Sweep. For kicks, I paid $1.00 to my Chase CC via setting up via the routing and account number similar to how I have my bank setup right now.

The odd thing is Chase is showing the $1.00 as "paid". I have 0 account history of any debits from my positions nor any errors on the Chase side. Do I need money in an "equity" position (mutual fund or ETF) asset that gets "sold" in order to provide the $1.00 payment to Chase?

Seems a bit odd.... but perhaps it takes a few days to settle? :confused
Thank you for sharing your experience! I am trying to do something similar to you, but I am initially seeing if I can leave the CMA at $0.00 and keep the money market dollars in our Fidelity brokerage account. Last Thursday / Friday I did micro contributions to all six of our credit cards after linking the credit cards to the CMA. This morning I received a text from Fidelity that showed all six micropayments were processing and the combined amount of that would be coming from our Fidelity brokerage account. So today I made the rest of the payments to get to the statement balance so no interest would be charged.

I also set up email alerts and this is the applicable section from the email sent in the early AM hours today:

"If you initiated a transaction from your Fidelity Cash Management Account, and didn't have the available funds, then we will automatically transfer the required funds from another Fidelity Account. You enabled this overdraft feature when you opened your Cash Management Account."

So...so far so good with the plan to move almost all of our regular banking to Fidelity while keeping enough balance in our new Merrill Edge brokerage account so that we can a) keep BofA as a brick-and-mortar option with no account maintenance fees and b) get better cash rewards with our new Customized Cash credit card. Many BH community members helped me get to this point with very helpful tips and suggestions, including this thread!

I had set up my wife's paycheck to direct deposit to the CMA but now I am thinking it might be cleaner to instead send that to our Fidelity brokerage account and let the overdraft feature work its magic so that we can keep the money market funds in SPRXX as long as possible and also not have two brokerage accounts with Fidelity.

If everything completes successfully over the next couple of days between Fidelity and the six credit cards then I will update this response in case someone else is looking for an example before testing it themselves.

Regards,

Joe
What's wrong with the direct deposit going to the Fidelity CMA? You can immediately buy SPRXX within the CMA.
User avatar
drumboy256
Posts: 673
Joined: Sat Jun 06, 2020 2:21 pm

Re: Fidelity as a one stop shop

Post by drumboy256 »

careerdata wrote: Mon Aug 15, 2022 8:25 pm
drumboy256 wrote: Sun Aug 14, 2022 6:35 pm Hey folks,

I'm working on migrating all of the finances over to Fidelity to have it be the one stop shop and I'm a bit perplexed.

I moved $20 bucks over to my CMA account and have $10 settled in SPRXX and $10 settled in CORE FDIC Insured Sweep. For kicks, I paid $1.00 to my Chase CC via setting up via the routing and account number similar to how I have my bank setup right now.

The odd thing is Chase is showing the $1.00 as "paid". I have 0 account history of any debits from my positions nor any errors on the Chase side. Do I need money in an "equity" position (mutual fund or ETF) asset that gets "sold" in order to provide the $1.00 payment to Chase?

Seems a bit odd.... but perhaps it takes a few days to settle? :confused
Thank you for sharing your experience! I am trying to do something similar to you, but I am initially seeing if I can leave the CMA at $0.00 and keep the money market dollars in our Fidelity brokerage account. Last Thursday / Friday I did micro contributions to all six of our credit cards after linking the credit cards to the CMA. This morning I received a text from Fidelity that showed all six micropayments were processing and the combined amount of that would be coming from our Fidelity brokerage account. So today I made the rest of the payments to get to the statement balance so no interest would be charged.

I also set up email alerts and this is the applicable section from the email sent in the early AM hours today:

"If you initiated a transaction from your Fidelity Cash Management Account, and didn't have the available funds, then we will automatically transfer the required funds from another Fidelity Account. You enabled this overdraft feature when you opened your Cash Management Account."

So...so far so good with the plan to move almost all of our regular banking to Fidelity while keeping enough balance in our new Merrill Edge brokerage account so that we can a) keep BofA as a brick-and-mortar option with no account maintenance fees and b) get better cash rewards with our new Customized Cash credit card. Many BH community members helped me get to this point with very helpful tips and suggestions, including this thread!

I had set up my wife's paycheck to direct deposit to the CMA but now I am thinking it might be cleaner to instead send that to our Fidelity brokerage account and let the overdraft feature work its magic so that we can keep the money market funds in SPRXX as long as possible and also not have two brokerage accounts with Fidelity.

If everything completes successfully over the next couple of days between Fidelity and the six credit cards then I will update this response in case someone else is looking for an example before testing it themselves.

Regards,

Joe
As anon pointed out--- your "CMA Brokerage" account is just another plain jane brokerage account with the OPTION to enable overdraft protection from your CMA account.

What I'm setting up is SPRXX core and charging DIRECTLY TO the CMA account so that the SPRXX is debited directly from the CMA account itself. I suppose it's a little chicken/egg cart/horse or even security through obscurity if you're wanting the CMA Brokerage account to get hit and then force rules of the overdraft to pull directly from your CMA account. Personally, with the security I have on the account, I'm in the "good enough" camp and don't want to deal with the CMA Brokerage account since I already have a Joint Brokerage with my wife.
Promise is one thing. Fulfilling that promise is quite another. - Sir Alex Ferguson | 20% IVV / 40% IBIT / 20% IXUS / 20% VGLT + chill
User avatar
JoMoney
Posts: 16260
Joined: Tue Jul 23, 2013 5:31 am

Re: Fidelity as a one stop shop

Post by JoMoney »

anon_investor wrote: Mon Aug 15, 2022 8:43 pm...
What's wrong with the direct deposit going to the Fidelity CMA? You can immediately buy SPRXX within the CMA.
:thumbsup
That seems a lot less convoluted than setting up another brokerage account and over-drafting from that.
"To achieve satisfactory investment results is easier than most people realize; to achieve superior results is harder than it looks." - Benjamin Graham
careerdata
Posts: 332
Joined: Sat Sep 09, 2017 7:12 pm

Re: Fidelity as a one stop shop

Post by careerdata »

anon_investor wrote: Mon Aug 15, 2022 8:43 pm
What's wrong with the direct deposit going to the Fidelity CMA? You can immediately buy SPRXX within the CMA.
Thanks! I don't think there is anything wrong per se but since opening the Merrill Edge (ME) brokerage it was just another reminder to me how much I like things in one spot. If I can keep everything in the Fidelity brokerage account and have the Fidelity CMA serves as just a transfer mechanism to a) pay the bills and b) have my wife draw cash when she travels to the Philippines next year, and have the ATM fees reimbursed, then I think that would work just fine for us. I read that a couple of other BH members were doing this same thing of keeping their Fidelity CMA at $0.00 but saw those responses after I had changed the direct deposit setting. It will be easy to switch it again.

If we direct deposit both our paychecks to the Fidelity brokerage account after winding down the BoA checking account, then we will move the current $25k in the BofA checking to the ME brokerage account to get to the $50k plus level and invest that for now in the TOIXX money market fund that you suggested in another post.

Regarding buying SPRXX immediately, isn't that what I just did with your suggestions last week, but in the Fidelity brokerage account, from SPAXX to SPRXX? Is there something different and/or better about doing that same thing conversion in the Fidelity CMA?

Regards,

Joe
careerdata
Posts: 332
Joined: Sat Sep 09, 2017 7:12 pm

Re: Fidelity as a one stop shop

Post by careerdata »

JoMoney wrote: Mon Aug 15, 2022 9:08 pm
anon_investor wrote: Mon Aug 15, 2022 8:43 pm...
What's wrong with the direct deposit going to the Fidelity CMA? You can immediately buy SPRXX within the CMA.
:thumbsup
That seems a lot less convoluted than setting up another brokerage account and over-drafting from that.
To clarify, I already have a Fidelity brokerage account, and that is where the Fidelity CMA is currently drawing from with apparently no issues that I can see. I am not looking to create another brokerage account, even if is a limited one, in the Fidelity CMA. I really didn't want to open the Merril Edge (ME) brokerage account but doing that can help us increase our cash rewards on our Customized Cash credit card and, as our assets grow in the ME brokerage account, increase the cash rewards even further. This plan also allows us to maintain a brick-and-mortar option with BoA if ever needed with no maintenance fees even if we keep a low or $0.00 balance most of the time.

I think that is the best approach for us in the near future but I am always looking and open to new ideas! :happy

Regards,

Joe
spammagnet
Posts: 2481
Joined: Wed Apr 27, 2016 9:42 pm

Re: Fidelity as a one stop shop

Post by spammagnet »

JoMoney wrote: Sun Aug 14, 2022 7:08 pm... Chase is just crediting you under the expectation that it will settle.
That is my experience with Chase withdrawing automatic payments from my CMA account. It's credited on the due date but doesn't hit the CMA for a couple of business days.
User avatar
anon_investor
Posts: 15122
Joined: Mon Jun 03, 2019 1:43 pm

Re: Fidelity as a one stop shop

Post by anon_investor »

Does it matter if we use the 17 digit or 13 digit account number format for our Fidelity CMA? Are they basically different numbers for the same account?
classicindexer
Posts: 208
Joined: Tue Apr 09, 2019 10:43 am

Re: Fidelity as a one stop shop

Post by classicindexer »

anon_investor wrote: Tue Aug 16, 2022 11:06 am Does it matter if we use the 17 digit or 13 digit account number format for our Fidelity CMA? Are they basically different numbers for the same account?
13 digit is only provided when checkwriting is enabled and both work as they both end in the same 9 digit account number. I often copy the full 17 digit for ACH transactions, thinking that if fraud ever had to be investigated, perhaps Fidelity would see the full number and I’d know it came from that number vs. the number that is printed on checks.
User avatar
anon_investor
Posts: 15122
Joined: Mon Jun 03, 2019 1:43 pm

Re: Fidelity as a one stop shop

Post by anon_investor »

classicindexer wrote: Tue Aug 16, 2022 11:22 am
anon_investor wrote: Tue Aug 16, 2022 11:06 am Does it matter if we use the 17 digit or 13 digit account number format for our Fidelity CMA? Are they basically different numbers for the same account?
13 digit is only provided when checkwriting is enabled and both work as they both end in the same 9 digit account number. I often copy the full 17 digit for ACH transactions, thinking that if fraud ever had to be investigated, perhaps Fidelity would see the full number and I’d know it came from that number vs. the number that is printed on checks.
Thanks. I have check writing enabled, but I have not recevied the checks yet (approved and shipped though). I tried to set up direct deposit to my CMA, but ADP does not accept the 17 digit account number, neither does Discover Card, but all my other credit cards and banks accepted the 17 digit account number fine for ACH.
radiowave
Posts: 3352
Joined: Thu Apr 30, 2015 5:01 pm

Re: Fidelity as a one stop shop

Post by radiowave »

Blue456 wrote: Sun Aug 14, 2022 9:05 am Can someone confirm that they were able to set up CMA account with $0 money that overdrafts onto brokerage account margin? Essentially I would like to use margin to withdraw money from ATM.
Consider having a separate CMA account that is not linked or overdraft and attach a debit card to it for ATM withdrawal. This isolates the account if the debit card gets hacked and only the money in that account will be at risk. Keep a small amount in the ATM only CMA account as needed.
Bogleheads Wiki: https://www.bogleheads.org/wiki/Main_Page
User avatar
anon_investor
Posts: 15122
Joined: Mon Jun 03, 2019 1:43 pm

Re: Fidelity as a one stop shop

Post by anon_investor »

radiowave wrote: Tue Aug 16, 2022 11:58 am
Blue456 wrote: Sun Aug 14, 2022 9:05 am Can someone confirm that they were able to set up CMA account with $0 money that overdrafts onto brokerage account margin? Essentially I would like to use margin to withdraw money from ATM.
Consider having a separate CMA account that is not linked or overdraft and attach a debit card to it for ATM withdrawal. This isolates the account if the debit card gets hacked and only the money in that account will be at risk. Keep a small amount in the ATM only CMA account as needed.
Also remember to lock your debit card when not in use!
User avatar
VictorStarr
Posts: 746
Joined: Sat Jan 04, 2020 9:13 pm
Location: Washington

Re: Fidelity as a one stop shop

Post by VictorStarr »

anon_investor wrote: Tue Aug 16, 2022 11:40 am
classicindexer wrote: Tue Aug 16, 2022 11:22 am
anon_investor wrote: Tue Aug 16, 2022 11:06 am Does it matter if we use the 17 digit or 13 digit account number format for our Fidelity CMA? Are they basically different numbers for the same account?
13 digit is only provided when checkwriting is enabled and both work as they both end in the same 9 digit account number. I often copy the full 17 digit for ACH transactions, thinking that if fraud ever had to be investigated, perhaps Fidelity would see the full number and I’d know it came from that number vs. the number that is printed on checks.
Thanks. I have check writing enabled, but I have not recevied the checks yet (approved and shipped though). I tried to set up direct deposit to my CMA, but ADP does not accept the 17 digit account number, neither does Discover Card, but all my other credit cards and banks accepted the 17 digit account number fine for ACH.
Interesting, I've never had problem with Fidelity 17 digit account number.
For 17-digit account number prefix is 39900000 and for 13-digit number prefix is 7710. I have no idea why Fidelity uses this ultra long prefix with five zeros, does UMB expects to have 10^8 customers of its banking services?
User avatar
anon_investor
Posts: 15122
Joined: Mon Jun 03, 2019 1:43 pm

Re: Fidelity as a one stop shop

Post by anon_investor »

VictorStarr wrote: Tue Aug 16, 2022 12:41 pm
anon_investor wrote: Tue Aug 16, 2022 11:40 am
classicindexer wrote: Tue Aug 16, 2022 11:22 am
anon_investor wrote: Tue Aug 16, 2022 11:06 am Does it matter if we use the 17 digit or 13 digit account number format for our Fidelity CMA? Are they basically different numbers for the same account?
13 digit is only provided when checkwriting is enabled and both work as they both end in the same 9 digit account number. I often copy the full 17 digit for ACH transactions, thinking that if fraud ever had to be investigated, perhaps Fidelity would see the full number and I’d know it came from that number vs. the number that is printed on checks.
Thanks. I have check writing enabled, but I have not recevied the checks yet (approved and shipped though). I tried to set up direct deposit to my CMA, but ADP does not accept the 17 digit account number, neither does Discover Card, but all my other credit cards and banks accepted the 17 digit account number fine for ACH.
Interesting, I've never had problem with Fidelity 17 digit account number.
For 17-digit account number prefix is 39900000 and for 13-digit number prefix is 7710. I have no idea why Fidelity uses this ultra long prefix with five zeros, does UMB expects to have 10^8 customers of its banking services?
Yeah, Discover Card would not accept the 17 digit account number and specifically asked for a 13 digit one. ADP (for direct deposit) would not recognize the 17 digit account number, so I will wait to receive the checks and use the 13 digit account number for Discover Card and ADP. Everyone else seems to accept the 17 digit account number (Ally, Barclays, BoA, Chase, WF, etc.). Not bothering to add to Treasury Direct though.
radiowave
Posts: 3352
Joined: Thu Apr 30, 2015 5:01 pm

Re: Fidelity as a one stop shop

Post by radiowave »

anon_investor wrote: Tue Aug 16, 2022 12:23 pm
radiowave wrote: Tue Aug 16, 2022 11:58 am
Blue456 wrote: Sun Aug 14, 2022 9:05 am Can someone confirm that they were able to set up CMA account with $0 money that overdrafts onto brokerage account margin? Essentially I would like to use margin to withdraw money from ATM.
Consider having a separate CMA account that is not linked or overdraft and attach a debit card to it for ATM withdrawal. This isolates the account if the debit card gets hacked and only the money in that account will be at risk. Keep a small amount in the ATM only CMA account as needed.
Also remember to lock your debit card when not in use!
+1
Bogleheads Wiki: https://www.bogleheads.org/wiki/Main_Page
classicindexer
Posts: 208
Joined: Tue Apr 09, 2019 10:43 am

Re: Fidelity as a one stop shop

Post by classicindexer »

anon_investor wrote: Tue Aug 16, 2022 11:40 am
classicindexer wrote: Tue Aug 16, 2022 11:22 am
anon_investor wrote: Tue Aug 16, 2022 11:06 am Does it matter if we use the 17 digit or 13 digit account number format for our Fidelity CMA? Are they basically different numbers for the same account?
13 digit is only provided when checkwriting is enabled and both work as they both end in the same 9 digit account number. I often copy the full 17 digit for ACH transactions, thinking that if fraud ever had to be investigated, perhaps Fidelity would see the full number and I’d know it came from that number vs. the number that is printed on checks.
Thanks. I have check writing enabled, but I have not recevied the checks yet (approved and shipped though). I tried to set up direct deposit to my CMA, but ADP does not accept the 17 digit account number, neither does Discover Card, but all my other credit cards and banks accepted the 17 digit account number fine for ACH.
Weird, ADP accepted the 17 digit number for me a few years ago. It is set as type Checking and it goes into a regular taxable brokerage account (not CMA).
radiowave
Posts: 3352
Joined: Thu Apr 30, 2015 5:01 pm

Re: Fidelity as a one stop shop

Post by radiowave »

radiowave wrote: Tue Aug 16, 2022 1:02 pm
anon_investor wrote: Tue Aug 16, 2022 12:23 pm
radiowave wrote: Tue Aug 16, 2022 11:58 am
Blue456 wrote: Sun Aug 14, 2022 9:05 am Can someone confirm that they were able to set up CMA account with $0 money that overdrafts onto brokerage account margin? Essentially I would like to use margin to withdraw money from ATM.
Consider having a separate CMA account that is not linked or overdraft and attach a debit card to it for ATM withdrawal. This isolates the account if the debit card gets hacked and only the money in that account will be at risk. Keep a small amount in the ATM only CMA account as needed.
Also remember to lock your debit card when not in use!
+1
Also see the Fidelity lockdown thread: viewtopic.php?t=381060 This one got me a bit concerned to say the least.
Bogleheads Wiki: https://www.bogleheads.org/wiki/Main_Page
User avatar
anon_investor
Posts: 15122
Joined: Mon Jun 03, 2019 1:43 pm

Re: Fidelity as a one stop shop

Post by anon_investor »

classicindexer wrote: Tue Aug 16, 2022 1:03 pm
anon_investor wrote: Tue Aug 16, 2022 11:40 am
classicindexer wrote: Tue Aug 16, 2022 11:22 am
anon_investor wrote: Tue Aug 16, 2022 11:06 am Does it matter if we use the 17 digit or 13 digit account number format for our Fidelity CMA? Are they basically different numbers for the same account?
13 digit is only provided when checkwriting is enabled and both work as they both end in the same 9 digit account number. I often copy the full 17 digit for ACH transactions, thinking that if fraud ever had to be investigated, perhaps Fidelity would see the full number and I’d know it came from that number vs. the number that is printed on checks.
Thanks. I have check writing enabled, but I have not recevied the checks yet (approved and shipped though). I tried to set up direct deposit to my CMA, but ADP does not accept the 17 digit account number, neither does Discover Card, but all my other credit cards and banks accepted the 17 digit account number fine for ACH.
Weird, ADP accepted the 17 digit number for me a few years ago. It is set as type Checking and it goes into a regular taxable brokerage account (not CMA).
I checked again, and it looks like ADP could not instantly verify the account, and gave a big scary warning about proceeding. But I went through that and now it looks like it is letting me add it but it says:
We're verifying this account with your financial institution. It may take one or more pay periods to complete this process.
I will give this a try.
PersonalFinanceJam
Posts: 694
Joined: Tue Aug 24, 2021 8:32 am

Re: Fidelity as a one stop shop

Post by PersonalFinanceJam »

anon_investor wrote: Tue Aug 16, 2022 12:47 pm ...
Yeah, Discover Card would not accept the 17 digit account number and specifically asked for a 13 digit one. ADP (for direct deposit) would not recognize the 17 digit account number, so I will wait to receive the checks and use the 13 digit account number for Discover Card and ADP. Everyone else seems to accept the 17 digit account number (Ally, Barclays, BoA, Chase, WF, etc.). Not bothering to add to Treasury Direct though.
When did you try to link Discover Card? I had no issues adding my 17 digit account number for my CMA to pay my Discover Card bill. I've never actually paid my bill with it since adding it because I rarely use that card anymore. I assume it works since it never errored out upon adding it. Likewise Discover Bank direct debits my CMA every 2 weeks into a savings account. I don't have check writing enabled for my CMA and only have the 17 digit account number.
User avatar
anon_investor
Posts: 15122
Joined: Mon Jun 03, 2019 1:43 pm

Re: Fidelity as a one stop shop

Post by anon_investor »

PersonalFinanceJam wrote: Tue Aug 16, 2022 2:04 pm
anon_investor wrote: Tue Aug 16, 2022 12:47 pm ...
Yeah, Discover Card would not accept the 17 digit account number and specifically asked for a 13 digit one. ADP (for direct deposit) would not recognize the 17 digit account number, so I will wait to receive the checks and use the 13 digit account number for Discover Card and ADP. Everyone else seems to accept the 17 digit account number (Ally, Barclays, BoA, Chase, WF, etc.). Not bothering to add to Treasury Direct though.
When did you try to link Discover Card? I had no issues adding my 17 digit account number for my CMA to pay my Discover Card bill. I've never actually paid my bill with it since adding it because I rarely use that card anymore. I assume it works since it never errored out upon adding it. Likewise Discover Bank direct debits my CMA every 2 weeks into a savings account. I don't have check writing enabled for my CMA and only have the 17 digit account number.
I tried it last week when I opened my CMA. I should probably try again, as I will have a big Discover Card bill this week. PayPal is a 5% cash back catagory and using PayPal Bill Pay linked to my Discover Card I paid all of my utility bills.

Update: I tried it again and it work!
Last edited by anon_investor on Tue Aug 16, 2022 4:20 pm, edited 1 time in total.
classicindexer
Posts: 208
Joined: Tue Apr 09, 2019 10:43 am

Re: Fidelity as a one stop shop

Post by classicindexer »

anon_investor wrote: Tue Aug 16, 2022 1:53 pm
classicindexer wrote: Tue Aug 16, 2022 1:03 pm
anon_investor wrote: Tue Aug 16, 2022 11:40 am
classicindexer wrote: Tue Aug 16, 2022 11:22 am
anon_investor wrote: Tue Aug 16, 2022 11:06 am Does it matter if we use the 17 digit or 13 digit account number format for our Fidelity CMA? Are they basically different numbers for the same account?
13 digit is only provided when checkwriting is enabled and both work as they both end in the same 9 digit account number. I often copy the full 17 digit for ACH transactions, thinking that if fraud ever had to be investigated, perhaps Fidelity would see the full number and I’d know it came from that number vs. the number that is printed on checks.
Thanks. I have check writing enabled, but I have not recevied the checks yet (approved and shipped though). I tried to set up direct deposit to my CMA, but ADP does not accept the 17 digit account number, neither does Discover Card, but all my other credit cards and banks accepted the 17 digit account number fine for ACH.
Weird, ADP accepted the 17 digit number for me a few years ago. It is set as type Checking and it goes into a regular taxable brokerage account (not CMA).
I checked again, and it looks like ADP could not instantly verify the account, and gave a big scary warning about proceeding. But I went through that and now it looks like it is letting me add it but it says:
We're verifying this account with your financial institution. It may take one or more pay periods to complete this process.
I will give this a try.
When I switched it to Fidelity a few years ago ADP sent a paper check (on bi-weekly payroll) for one pay period while they verified the account with Fidelity.
User avatar
anon_investor
Posts: 15122
Joined: Mon Jun 03, 2019 1:43 pm

Re: Fidelity as a one stop shop

Post by anon_investor »

classicindexer wrote: Tue Aug 16, 2022 3:41 pm
anon_investor wrote: Tue Aug 16, 2022 1:53 pm
classicindexer wrote: Tue Aug 16, 2022 1:03 pm
anon_investor wrote: Tue Aug 16, 2022 11:40 am
classicindexer wrote: Tue Aug 16, 2022 11:22 am

13 digit is only provided when checkwriting is enabled and both work as they both end in the same 9 digit account number. I often copy the full 17 digit for ACH transactions, thinking that if fraud ever had to be investigated, perhaps Fidelity would see the full number and I’d know it came from that number vs. the number that is printed on checks.
Thanks. I have check writing enabled, but I have not recevied the checks yet (approved and shipped though). I tried to set up direct deposit to my CMA, but ADP does not accept the 17 digit account number, neither does Discover Card, but all my other credit cards and banks accepted the 17 digit account number fine for ACH.
Weird, ADP accepted the 17 digit number for me a few years ago. It is set as type Checking and it goes into a regular taxable brokerage account (not CMA).
I checked again, and it looks like ADP could not instantly verify the account, and gave a big scary warning about proceeding. But I went through that and now it looks like it is letting me add it but it says:
We're verifying this account with your financial institution. It may take one or more pay periods to complete this process.
I will give this a try.
When I switched it to Fidelity a few years ago ADP sent a paper check (on bi-weekly payroll) for one pay period while they verified the account with Fidelity.
Hopefully they don't do that to me, but I am doing a split direct deposit continuing with an existing bank account, maybe I can avoid a paper check.
Blue456
Posts: 2152
Joined: Tue Jun 04, 2019 5:46 am

Re: Fidelity as a one stop shop

Post by Blue456 »

radiowave wrote: Tue Aug 16, 2022 11:58 am
Blue456 wrote: Sun Aug 14, 2022 9:05 am Can someone confirm that they were able to set up CMA account with $0 money that overdrafts onto brokerage account margin? Essentially I would like to use margin to withdraw money from ATM.
Consider having a separate CMA account that is not linked or overdraft and attach a debit card to it for ATM withdrawal. This isolates the account if the debit card gets hacked and only the money in that account will be at risk. Keep a small amount in the ATM only CMA account as needed.
Wouldn't keeping debit card permanently locked fix this issue?
spammagnet
Posts: 2481
Joined: Wed Apr 27, 2016 9:42 pm

Re: Fidelity as a one stop shop

Post by spammagnet »

VictorStarr wrote: Tue Aug 16, 2022 12:41 pm... I have no idea why Fidelity uses this ultra long prefix with five zeros, does UMB expects to have 10^8 customers of its banking services?
Apparently it's Fidelity's legacy format in their internal systems from before the days they had checking accounts. It would be extremely painful and not add any value to change it, internally.

UMB uses the ACH-compliant format. I surmise that they reserved all numbers starting with 7710 for Fidelity accounts. Fidelity provides the last 9 digits from their number to be used with UMB, assuring that new account numbers are unique.

Fidelity either stores the UMB number in a specific field to map their account number to the UMB account number, or the interface code between Fidelity and UMB just translates by adding or removing the standard 7710 prefix.

Why Fidelity doesn't just post the 7710* number for external use confounds me. If' I'm looking for ACH information, clearly my intent is to post it in an external system. Since the 13-digit format works for everybody, why waste my time with the 17-digit format?
User avatar
anon_investor
Posts: 15122
Joined: Mon Jun 03, 2019 1:43 pm

Re: Fidelity as a one stop shop

Post by anon_investor »

spammagnet wrote: Wed Aug 17, 2022 1:58 pm
VictorStarr wrote: Tue Aug 16, 2022 12:41 pm... I have no idea why Fidelity uses this ultra long prefix with five zeros, does UMB expects to have 10^8 customers of its banking services?
Apparently it's Fidelity's legacy format in their internal systems from before the days they had checking accounts. It would be extremely painful and not add any value to change it, internally.

UMB uses the ACH-compliant format. I surmise that they reserved all numbers starting with 7710 for Fidelity accounts. Fidelity provides the last 9 digits from their number to be used with UMB, assuring that new account numbers are unique.

Fidelity either stores the UMB number in a specific field to map their account number to the UMB account number, or the interface code between Fidelity and UMB just translates by adding or removing the standard 7710 prefix.

Why Fidelity doesn't just post the 7710* number for external use confounds me. If' I'm looking for ACH information, clearly my intent is to post it in an external system. Since the 13-digit format works for everybody, why waste my time with the 17-digit format?
We shall see if the ADP gives me any issues with the 17 digit account format for my direct deposit, it didn't immediately verify it and said they would need to verify before the approved the direct deposit. The 17 digit account format now seems to be recognied everywhere else for me (it didn't work for me last week for Discover Card, but worked this week).

I have already started to schedule some ACH payments out of my Fidelity CMA. All the micro deposit tests worked fine, so hopefully everything works properly. The only big negative I see with the Fidelity CMA is if I initiate a funds transfer into my account via Fidelity the funds are not available for withdrawal for 3 days or more. Though, once my direct deposit starts going to my Fidelity CMA, that will be less of an issue.
spammagnet
Posts: 2481
Joined: Wed Apr 27, 2016 9:42 pm

Re: Fidelity as a one stop shop

Post by spammagnet »

anon_investor wrote: Wed Aug 17, 2022 2:17 pmWe shall see if the ADP gives me any issues with the 17 digit account format for my direct deposit, it didn't immediately verify it and said they would need to verify before the approved the direct deposit. The 17 digit account format now seems to be recognied everywhere else for me (it didn't work for me last week for Discover Card, but worked this week).

I have already started to schedule some ACH payments out of my Fidelity CMA. All the micro deposit tests worked fine, so hopefully everything works properly. The only big negative I see with the Fidelity CMA is if I initiate a funds transfer into my account via Fidelity the funds are not available for withdrawal for 3 days or more. Though, once my direct deposit starts going to my Fidelity CMA, that will be less of an issue.
Some vendors are stuck on medieval legacy systems and ask for a paper check with their paper form. If the check doesn't match the form, they reject it. For consistency, I always use the number on the check, but I have the check to validate that.
User avatar
anon_investor
Posts: 15122
Joined: Mon Jun 03, 2019 1:43 pm

Re: Fidelity as a one stop shop

Post by anon_investor »

spammagnet wrote: Wed Aug 17, 2022 3:20 pm
anon_investor wrote: Wed Aug 17, 2022 2:17 pmWe shall see if the ADP gives me any issues with the 17 digit account format for my direct deposit, it didn't immediately verify it and said they would need to verify before the approved the direct deposit. The 17 digit account format now seems to be recognied everywhere else for me (it didn't work for me last week for Discover Card, but worked this week).

I have already started to schedule some ACH payments out of my Fidelity CMA. All the micro deposit tests worked fine, so hopefully everything works properly. The only big negative I see with the Fidelity CMA is if I initiate a funds transfer into my account via Fidelity the funds are not available for withdrawal for 3 days or more. Though, once my direct deposit starts going to my Fidelity CMA, that will be less of an issue.
Some vendors are stuck on medieval legacy systems and ask for a paper check with their paper form. If the check doesn't match the form, they reject it. For consistency, I always use the number on the check, but I have the check to validate that.
Hopefully ADP can validate the 17 digit account # for my Fidelity CMA, I really don't want a paper check.
User avatar
indexfundfan
Posts: 3962
Joined: Tue Feb 20, 2007 10:21 am
Contact:

Re: Fidelity as a one stop shop

Post by indexfundfan »

For those using FZDXX or SPRXX in a margin account, I thought I would post a cautionary note here.

If you submit a purchase of FZDXX, in a margin account, and there is debit due to another trade settling on that day, it seems like Fidelity wouldn't auto-liquidate FZDXX to settle the debit, like it is advertised to do. Instead, it would draw on margin to pay for the other trade, incurring margin interest.

Such a case posted on Reddit

https://www.reddit.com/r/fidelityinvest ... ing_money/
My signature has been deleted.
arf30
Posts: 892
Joined: Sat Dec 28, 2013 10:55 am

Re: Fidelity as a one stop shop

Post by arf30 »

indexfundfan wrote: Wed Aug 17, 2022 8:09 pm For those using FZDXX or SPRXX in a margin account, I thought I would post a cautionary note here.

If you submit a purchase of FZDXX, in a margin account, and there is debit due to another trade settling on that day, it seems like Fidelity wouldn't auto-liquidate FZDXX to settle the debit, like it is advertised to do. Instead, it would draw on margin to pay for the other trade, incurring margin interest.

Such a case posted on Reddit

https://www.reddit.com/r/fidelityinvest ... ing_money/
Did you select "cash" or "margin" when entering the trade, or did it exceed the "available to trade without margin impact" amount?
User avatar
JoMoney
Posts: 16260
Joined: Tue Jul 23, 2013 5:31 am

Re: Fidelity as a one stop shop

Post by JoMoney »

arf30 wrote: Wed Aug 17, 2022 8:11 pm
indexfundfan wrote: Wed Aug 17, 2022 8:09 pm For those using FZDXX or SPRXX in a margin account, I thought I would post a cautionary note here.

If you submit a purchase of FZDXX, in a margin account, and there is debit due to another trade settling on that day, it seems like Fidelity wouldn't auto-liquidate FZDXX to settle the debit, like it is advertised to do. Instead, it would draw on margin to pay for the other trade, incurring margin interest.

Such a case posted on Reddit

https://www.reddit.com/r/fidelityinvest ... ing_money/
Did you select "cash" or "margin" when entering the trade, or did it exceed the "available to trade without margin impact" amount?
Fidelity explains the Cash Management tool as withdrawing in that order, with margin ahead of other non-core money market funds (presuming one has margin on their linked account):
Fidelity Cash Manager FAQ wrote:..Available funds include cash (core), available margin, and non-core money market funds. These sources will be drawn from the first funding account in this order before the next account is tapped.

https://www.fidelity.com/cash-managemen ... nt-account
"To achieve satisfactory investment results is easier than most people realize; to achieve superior results is harder than it looks." - Benjamin Graham
arf30
Posts: 892
Joined: Sat Dec 28, 2013 10:55 am

Re: Fidelity as a one stop shop

Post by arf30 »

JoMoney wrote: Wed Aug 17, 2022 8:18 pm
arf30 wrote: Wed Aug 17, 2022 8:11 pm
indexfundfan wrote: Wed Aug 17, 2022 8:09 pm For those using FZDXX or SPRXX in a margin account, I thought I would post a cautionary note here.

If you submit a purchase of FZDXX, in a margin account, and there is debit due to another trade settling on that day, it seems like Fidelity wouldn't auto-liquidate FZDXX to settle the debit, like it is advertised to do. Instead, it would draw on margin to pay for the other trade, incurring margin interest.

Such a case posted on Reddit

https://www.reddit.com/r/fidelityinvest ... ing_money/
Did you select "cash" or "margin" when entering the trade, or did it exceed the "available to trade without margin impact" amount?
Fidelity explains the Cash Management tool as withdrawing in that order, with margin ahead of other non-core money market funds (presuming one has margin on their linked account):
Fidelity Cash Manager FAQ wrote:..Available funds include cash (core), available margin, and non-core money market funds. These sources will be drawn from the first funding account in this order before the next account is tapped.

https://www.fidelity.com/cash-managemen ... nt-account
Good to know, maybe I should convert back to a cash account in that case.
User avatar
indexfundfan
Posts: 3962
Joined: Tue Feb 20, 2007 10:21 am
Contact:

Re: Fidelity as a one stop shop

Post by indexfundfan »

JoMoney wrote: Wed Aug 17, 2022 8:18 pm
arf30 wrote: Wed Aug 17, 2022 8:11 pm
indexfundfan wrote: Wed Aug 17, 2022 8:09 pm For those using FZDXX or SPRXX in a margin account, I thought I would post a cautionary note here.

If you submit a purchase of FZDXX, in a margin account, and there is debit due to another trade settling on that day, it seems like Fidelity wouldn't auto-liquidate FZDXX to settle the debit, like it is advertised to do. Instead, it would draw on margin to pay for the other trade, incurring margin interest.

Such a case posted on Reddit

https://www.reddit.com/r/fidelityinvest ... ing_money/
Did you select "cash" or "margin" when entering the trade, or did it exceed the "available to trade without margin impact" amount?
Fidelity explains the Cash Management tool as withdrawing in that order, with margin ahead of other non-core money market funds (presuming one has margin on their linked account):
Fidelity Cash Manager FAQ wrote:..Available funds include cash (core), available margin, and non-core money market funds. These sources will be drawn from the first funding account in this order before the next account is tapped.

https://www.fidelity.com/cash-managemen ... nt-account
That may be so for a CMA. But for a brokerage account, it is supposed to liquidate the non-core MMF before incurring margin. See p.13 below

https://www.fidelity.com/bin-public/060 ... eement.pdf
My signature has been deleted.
Loandapper
Posts: 226
Joined: Mon Jul 21, 2014 11:49 am

Re: Fidelity as a one stop shop

Post by Loandapper »

Has anyone been able to successfully link their Fidelity CMA with Plaid? No matter which site I use, I just can't get Plaid to accept my Fidelity account. Any hints or tips on how to make this work would be greatly appreciated!
spammagnet
Posts: 2481
Joined: Wed Apr 27, 2016 9:42 pm

Re: Fidelity as a one stop shop

Post by spammagnet »

indexfundfan wrote: Wed Aug 17, 2022 8:40 pmThat may be so for a CMA. But for a brokerage account, it is supposed to liquidate the non-core MMF before incurring margin. See p.13 below

https://www.fidelity.com/bin-public/060 ... eement.pdf
For the benefit of others, the relevant language is below.

"... in this order:

• the Intra-day Free Credit Balances
• redemption proceeds from the sale of your core position at the market close
• redemption proceeds from the sale of any shares of a Fidelity money market mutual fund held in the account that maintains a stable (i.e., $1.00/share) net asset value and is not subject to a liquidity fee or similar fee or assessment
• if you have a margin account, any margin surplus available, which will increase your margin balance
..."
outbackcountry
Posts: 43
Joined: Sat Dec 03, 2016 5:26 pm
Location: AZ

Re: Fidelity as a one stop shop

Post by outbackcountry »

Loandapper wrote: Wed Aug 17, 2022 11:20 pm Has anyone been able to successfully link their Fidelity CMA with Plaid? No matter which site I use, I just can't get Plaid to accept my Fidelity account. Any hints or tips on how to make this work would be greatly appreciated!
Nope. However, the I did try now at DCU (Plaid) and got a message that the DCU/Plaid set up didn't support the multi-factor authentication method of Fidelity.
Loandapper
Posts: 226
Joined: Mon Jul 21, 2014 11:49 am

Re: Fidelity as a one stop shop

Post by Loandapper »

outbackcountry wrote: Thu Aug 18, 2022 1:31 am
Loandapper wrote: Wed Aug 17, 2022 11:20 pm Has anyone been able to successfully link their Fidelity CMA with Plaid? No matter which site I use, I just can't get Plaid to accept my Fidelity account. Any hints or tips on how to make this work would be greatly appreciated!
Nope. However, the I did try now at DCU (Plaid) and got a message that the DCU/Plaid set up didn't support the multi-factor authentication method of Fidelity.
This is the same error message I’m getting. Anyone successfully resolve this?
homebuyer6426
Posts: 1833
Joined: Tue Feb 07, 2017 8:08 am

Re: Fidelity as a one stop shop

Post by homebuyer6426 »

Loandapper wrote: Thu Aug 18, 2022 8:17 am
outbackcountry wrote: Thu Aug 18, 2022 1:31 am
Loandapper wrote: Wed Aug 17, 2022 11:20 pm Has anyone been able to successfully link their Fidelity CMA with Plaid? No matter which site I use, I just can't get Plaid to accept my Fidelity account. Any hints or tips on how to make this work would be greatly appreciated!
Nope. However, the I did try now at DCU (Plaid) and got a message that the DCU/Plaid set up didn't support the multi-factor authentication method of Fidelity.
This is the same error message I’m getting. Anyone successfully resolve this?
I opted for the bank account link instead of using Plaid and it works for me.

Plaid is not as secure as Fidelity and they are trying to protect you from the risk if you have 2FA on. I believe you can turn 2FA off and accept the risk if you choose. I chose not to use Plaid as I don't want this risk when dealing with large money amounts.
43% Total Stock Market | 53% Consumer Staples | 4% Short Term Reserves
Post Reply