Fidelity as a one stop shop

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552BB
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Re: Fidelity as a one stop shop

Post by 552BB »

Great reading

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Re: Fidelity as a one stop shop

Post by TimeRunner »

Running on the beach yesterday (Sat) when I first got a text then an email that my Fido (Elan) VISA was used to charge $28 at ICE BOX JAMBA (card not present), followed quickly by a card denied text/email. Called card services, they quickly answered, shut down the card, and expedited a new card that is due to arrive next Tuesday. Excellent service!

(No obvious card number leak. Card has not left my possession, but has been used for various online transactions. Card compro is common these days.)
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Re: Fidelity as a one stop shop

Post by careerdata »

JoMoney wrote: Sun Aug 07, 2022 7:50 am
Fidelity also has a free "Bill Pay" that participates in the eBill service (requires payee participation, that many billers do.) "eBills" can be setup to automatically pay designated bills, which is an alternative some prefer rather than authorizing the biller to directly debit their account.
https://www.fidelity.com/cash-managemen ... pay/ebills
I am brand new to this great thread so I have not yet had a chance to dig into all of the many responses, but I plan to do that over the next several weeks. My wife and I are currently debating between moving our BofA checking services to either SoFi, which would pay 1.8% APR on whatever we keep in checking, or opening a CMA with Fidelity. 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%. If we open up a CMA with Fidelity where would the money for checking be held and how does the APR compare to SoFi's current 1.8% APR? Are there perhaps clever ways to always keep earning something better than the 1.8% APR from SoFi with Fidelity's CMA if we decide to move our checking services from BoA?

Many thanks in advance for your response!

Joe
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JoMoney
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Re: Fidelity as a one stop shop

Post by JoMoney »

careerdata wrote: Sun Aug 07, 2022 12:37 pm
JoMoney wrote: Sun Aug 07, 2022 7:50 am
Fidelity also has a free "Bill Pay" that participates in the eBill service (requires payee participation, that many billers do.) "eBills" can be setup to automatically pay designated bills, which is an alternative some prefer rather than authorizing the biller to directly debit their account.
https://www.fidelity.com/cash-managemen ... pay/ebills
I am brand new to this great thread so I have not yet had a chance to dig into all of the many responses, but I plan to do that over the next several weeks. My wife and I are currently debating between moving our BofA checking services to either SoFi, which would pay 1.8% APR on whatever we keep in checking, or opening a CMA with Fidelity. 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%. If we open up a CMA with Fidelity where would the money for checking be held and how does the APR compare to SoFi's current 1.8% APR? Are there perhaps clever ways to always keep earning something better than the 1.8% APR from SoFi with Fidelity's CMA if we decide to move our checking services from BoA?

Many thanks in advance for your response!

Joe
The settlement/sweep account for all deposits is into the FDIC bank sweep account. The current published interest rate on deposits left in the bank sweep is 1.20%
https://accountopening.fidelity.com/ftg ... ?type=fcma

You can choose to buy/move money from the bank sweep to a Fidelity money market fund (like SPRXX) in the CMA, and it will automatically draw/debit balances in the money market fund if there is a 0 balance in the bank sweep. Note that SPRXX is a "Prime" money market holding commercial paper (as opposed to a government money market), and as such those types of money markets are subject to possible liquidity control gates (fees or redemption freezes.) Personally, I don't think the difference in yield between the "Prime" and "Government" money markets is worth it for the possibility of the account in some hypothetical event to be illiquid... but that's a personal risk preference.

FWIW, if you already have a regular taxable Fidelity brokerage account, you can add a debit card, check writing, bill pay and all the features of the CMA account to that (and it will draw on your default settlement fund and any other liquid money market accounts). The only advantage of the CMA over their regular brokerage account (that I'm aware of), is the CMA offers ATM fee reimbursement for everyone, whereas the regular brokerage account only refunds ATM fees for those using Wealth Management or assigned a "Private Client" rep.
There are no ATM fees to use an ATM that's in the same ATM network as PNC bank (which is a pretty large network at most 7-11's, CVS, Target, and other common locations.)
"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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Re: Fidelity as a one stop shop

Post by nalor511 »

JoMoney wrote: Sun Aug 07, 2022 12:50 pm
careerdata wrote: Sun Aug 07, 2022 12:37 pm
JoMoney wrote: Sun Aug 07, 2022 7:50 am
Fidelity also has a free "Bill Pay" that participates in the eBill service (requires payee participation, that many billers do.) "eBills" can be setup to automatically pay designated bills, which is an alternative some prefer rather than authorizing the biller to directly debit their account.
https://www.fidelity.com/cash-managemen ... pay/ebills
I am brand new to this great thread so I have not yet had a chance to dig into all of the many responses, but I plan to do that over the next several weeks. My wife and I are currently debating between moving our BofA checking services to either SoFi, which would pay 1.8% APR on whatever we keep in checking, or opening a CMA with Fidelity. 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%. If we open up a CMA with Fidelity where would the money for checking be held and how does the APR compare to SoFi's current 1.8% APR? Are there perhaps clever ways to always keep earning something better than the 1.8% APR from SoFi with Fidelity's CMA if we decide to move our checking services from BoA?

Many thanks in advance for your response!

Joe
The settlement/sweep account for all deposits is into the FDIC bank sweep account. The current published interest rate on deposits left in the bank sweep is 1.20%
https://accountopening.fidelity.com/ftg ... ?type=fcma

You can choose to buy/move money from the bank sweep to a Fidelity money market fund (like SPRXX) in the CMA, and it will automatically draw/debit balances in the money market fund if there is a 0 balance in the bank sweep. Note that SPRXX is a "Prime" money market holding commercial paper (as opposed to a government money market), and as such those types of money markets are subject to possible liquidity control gates (fees or redemption freezes.) Personally, I don't think the difference in yield between the "Prime" and "Government" money markets is worth it for the possibility of the account in some hypothetical event to be illiquid... but that's a personal risk preference.

FWIW, if you already have a regular taxable Fidelity brokerage account, you can add a debit card, check writing, bill pay and all the features of the CMA account to that (and it will draw on your default settlement fund and any other liquid money market accounts). The only advantage of the CMA over their regular brokerage account (that I'm aware of), is the CMA offers ATM fee reimbursement for everyone, whereas the regular brokerage account only refunds ATM fees for those using Wealth Management or assigned a "Private Client" rep.
There are no ATM fees to use an ATM that's in the same ATM network as PNC bank (which is a pretty large network at most 7-11's, CVS, Target, and other common locations.)
You can also just open a CMA with $0, turn on free self funded overdraft to brokerage (where the money is), and then you've got free debit usage and you can keep your brokerage money right where it is now
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Re: Fidelity as a one stop shop

Post by chet96 »

JoMoney wrote: Sun Aug 07, 2022 7:50 am
You can choose to buy/move money from the bank sweep to a Fidelity money market fund (like SPRXX) in the CMA, and it will automatically draw/debit balances in the money market fund if there is a 0 balance in the bank sweep. Note that SPRXX is a "Prime" money market holding commercial paper (as opposed to a government money market), and as such those types of money markets are subject to possible liquidity control gates (fees or redemption freezes.) Personally, I don't think the difference in yield between the "Prime" and "Government" money markets is worth it for the possibility of the account in some hypothetical event to be illiquid... but that's a personal risk preference.
Very useful post - could you explain redemption freeze a bit further? Are you thinking of a situation where the market melts down or something else?
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Re: Fidelity as a one stop shop

Post by William4u »

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?
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Re: Fidelity as a one stop shop

Post by increment »

chet96 wrote: Sun Aug 07, 2022 1:08 pm Are you thinking of a situation where the market melts down or something else?
Those are the situations, as Investopedia explains,
The trigger for a fee or temporary suspension (gate) for institutional and retail money market funds is when the weekly level of liquid assets falls below 30% of total assets. At that time, the fund’s board may impose up to a 2% redemption fee. It can also suspend redemptions for up to 10 business days in a 90-day period.

If a fund’s liquid assets fall below 10% of total assets, the board is required to impose a redemption fee of up to 1%. ... Government money market funds may, but are not required to, impose fees or gates.
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Re: Fidelity as a one stop shop

Post by JoMoney »

chet96 wrote: Sun Aug 07, 2022 1:08 pm
JoMoney wrote: Sun Aug 07, 2022 7:50 am
You can choose to buy/move money from the bank sweep to a Fidelity money market fund (like SPRXX) in the CMA, and it will automatically draw/debit balances in the money market fund if there is a 0 balance in the bank sweep. Note that SPRXX is a "Prime" money market holding commercial paper (as opposed to a government money market), and as such those types of money markets are subject to possible liquidity control gates (fees or redemption freezes.) Personally, I don't think the difference in yield between the "Prime" and "Government" money markets is worth it for the possibility of the account in some hypothetical event to be illiquid... but that's a personal risk preference.
Very useful post - could you explain redemption freeze a bit further? Are you thinking of a situation where the market melts down or something else?
Yes, the scenario would likely correspond to a situation "where the market melts down", but doesn't have to be systemic, it could be a situation specific to the fund. Fidelity runs their money markets prudently and has an interest in doing whatever they can to avoid such a situation, but SEC rules created since the 'global financial crisis' have required that "Prime" (non-government) money markets maintain certain amounts of liquidity, and if that dries up they are forced to implement control gates which could include charging fees to sell or (temporary) freeze of withdrawals to protect the people that remain in the fund from being bag-holders ... which is good for those that desire to stick with the fund long term, but not what I want for my short-term cash :?
"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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Re: Fidelity as a one stop shop

Post by careerdata »

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
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Re: Fidelity as a one stop shop

Post by indexfundfan »

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.
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careerdata
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Re: Fidelity as a one stop shop

Post by careerdata »

nalor511 wrote: Sun Aug 07, 2022 1:06 pm
You can also just open a CMA with $0, turn on free self funded overdraft to brokerage (where the money is), and then you've got free debit usage and you can keep your brokerage money right where it is now
Hmm...that sounds VERY interesting! How does this sound as a potential plan:

--Open up a CMA with Fidelity with $0
--Turn on the free self-funded overdraft to brokerage option you referenced
--Set up my wife's biweekly paycheck (the net amount varies between $1,600 and $2,500 depending upon whether or not she picks up an extra shift as a nurse) to direct deposit into our Fidelity brokerage account
--Leave the default fund in our Fidelity brokerage account as SPAXX
--On payday every other Friday, once I see the paycheck invested in SPAXX, I do the quick 10-second trade on the Fidelity phone app from SPAXX to SPRXX to get the current 7-Day SEC Yield of 2.0%

I see nothing but positives to doing this compared to keeping our checking account with BofA where we earn no interest as of today and this plan is even better than opening up a SoFi checking account as the maximum APR we can earn on dollars in the SoFi checking account is currently 1.8%. The other positive, connected to this mega thread, is that we already have a larger portion of our retirement assets with Fidelity [former employer 401(k), former employer HSA account, and both of our Roth IRAs].

Is there a stealthy "X" or "Y" variable that I am not thinking through correctly regarding this potential plan before I run it by my wife for her consideration?

Regards,

Joe
Last edited by careerdata on Sun Aug 07, 2022 3:21 pm, edited 1 time in total.
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Re: Fidelity as a one stop shop

Post by muffins14 »

You could just use a brokerage, no need for CMA plus overdraft protection
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Re: Fidelity as a one stop shop

Post by JoMoney »

muffins14 wrote: Sun Aug 07, 2022 2:24 pm You could just use a brokerage, no need for CMA plus overdraft protection
:thumbsup
You can add a debit card, check writing, BillPay, and by default have the ACH routing/account number access to a regular Fidelity brokerage account.
"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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Re: Fidelity as a one stop shop

Post by nalor511 »

JoMoney wrote: Sun Aug 07, 2022 2:32 pm
muffins14 wrote: Sun Aug 07, 2022 2:24 pm You could just use a brokerage, no need for CMA plus overdraft protection
:thumbsup
You can add a debit card, check writing, BillPay, and by default have the ACH routing/account number access to a regular Fidelity brokerage account.
Brokerage has debit card fees unless you're a Private Client or other high value client. Click "debit levels" https://www.fidelity.com/cash-management/atm-debit-card
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Re: Fidelity as a one stop shop

Post by nalor511 »

careerdata wrote: Sun Aug 07, 2022 2:21 pm
nalor511 wrote: Sun Aug 07, 2022 1:06 pm
You can also just open a CMA with $0, turn on free self funded overdraft to brokerage (where the money is), and then you've got free debit usage and you can keep your brokerage money right where it is now
Hmm...that sounds VERY interesting! How does this sound as a potential plan:

--Open up a CMA with Fidelity with $0
--Turn on the free self-funded overdraft to brokerage option you referenced
--Set up my wife's biweekly paycheck (the net amount varies between $1,600 and $2,500 depending upon whether or not she picks up an extra shit as a nurse) to direct deposit into our Fidelity brokerage account
--Leave the default fund in our Fidelity brokerage account as SPAXX
--On payday every other Friday, once I see the paycheck invested in SPAXX, I do the quick 10-second trade on the Fidelity phone app from SPAXX to SPRXX to get the current 7-Day SEC Yield of 2.0%

I see nothing but positives to doing this compared to keeping our checking account with BofA where we earn no interest as of today and this plan is even better than opening up a SoFi checking account as the maximum APR we can earn on dollars in the SoFi checking account is currently 1.8%. The other positive, connected to this mega thread, is that we already have a larger portion of our retirement assets with Fidelity [former employer 401(k), former employer HSA account, and both of our Roth IRAs].

Is there a stealthy "X" or "Y" variable that I am not thinking through correctly regarding this potential plan before I run it by my wife for her consideration?

Regards,

Joe
Your plan is sound. Nothing but positives. This is similar to what I recently switched to doing.
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JoMoney
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Re: Fidelity as a one stop shop

Post by JoMoney »

nalor511 wrote: Sun Aug 07, 2022 2:34 pm
JoMoney wrote: Sun Aug 07, 2022 2:32 pm
muffins14 wrote: Sun Aug 07, 2022 2:24 pm You could just use a brokerage, no need for CMA plus overdraft protection
:thumbsup
You can add a debit card, check writing, BillPay, and by default have the ACH routing/account number access to a regular Fidelity brokerage account.
Brokerage has debit card fees unless you're a Private Client or other high value client. Click "debit levels" https://www.fidelity.com/cash-management/atm-debit-card
Fidelity doesn't charge any fees for a ATM debit card. If you use the ATM card to get cash at an ATM machine that charges a fee, Fidelity doesn't reimburse unless you qualify (whereas they do for the CMA account.)
If someone elects to go that route, and uses the ATM frequently, there are lots of ATMs that do not charge a fee (same ATM network as PNC bank.)
"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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Re: Fidelity as a one stop shop

Post by anon_investor »

careerdata wrote: Sun Aug 07, 2022 2:21 pm
nalor511 wrote: Sun Aug 07, 2022 1:06 pm
You can also just open a CMA with $0, turn on free self funded overdraft to brokerage (where the money is), and then you've got free debit usage and you can keep your brokerage money right where it is now
Hmm...that sounds VERY interesting! How does this sound as a potential plan:

--Open up a CMA with Fidelity with $0
--Turn on the free self-funded overdraft to brokerage option you referenced
--Set up my wife's biweekly paycheck (the net amount varies between $1,600 and $2,500 depending upon whether or not she picks up an extra shit as a nurse) to direct deposit into our Fidelity brokerage account
--Leave the default fund in our Fidelity brokerage account as SPAXX
--On payday every other Friday, once I see the paycheck invested in SPAXX, I do the quick 10-second trade on the Fidelity phone app from SPAXX to SPRXX to get the current 7-Day SEC Yield of 2.0%

I see nothing but positives to doing this compared to keeping our checking account with BofA where we earn no interest as of today and this plan is even better than opening up a SoFi checking account as the maximum APR we can earn on dollars in the SoFi checking account is currently 1.8%. The other positive, connected to this mega thread, is that we already have a larger portion of our retirement assets with Fidelity [former employer 401(k), former employer HSA account, and both of our Roth IRAs].

Is there a stealthy "X" or "Y" variable that I am not thinking through correctly regarding this potential plan before I run it by my wife for her consideration?

Regards,

Joe
You mentioned in another thread you wanted to build up after tax assets to transfer to BoA/ME to get to the Platinum Honors tier of BoA Preferred Rewards status. You can build those up at Fidelity then ask ME for a bonus for transferring them to ME from Fidelity.
nalor511
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Re: Fidelity as a one stop shop

Post by nalor511 »

JoMoney wrote: Sun Aug 07, 2022 2:39 pm
nalor511 wrote: Sun Aug 07, 2022 2:34 pm
JoMoney wrote: Sun Aug 07, 2022 2:32 pm
muffins14 wrote: Sun Aug 07, 2022 2:24 pm You could just use a brokerage, no need for CMA plus overdraft protection
:thumbsup
You can add a debit card, check writing, BillPay, and by default have the ACH routing/account number access to a regular Fidelity brokerage account.
Brokerage has debit card fees unless you're a Private Client or other high value client. Click "debit levels" https://www.fidelity.com/cash-management/atm-debit-card
Fidelity doesn't charge any fees for a ATM debit card. If you use the ATM card to get cash at an ATM machine that charges a fee, Fidelity doesn't reimburse unless you qualify (whereas they do for the CMA account.)
If someone elects to go that route, and uses the ATM frequently, there are lots of ATMs that do not charge a fee (same ATM network as PNC bank.)
Potato, potatoe. If you want to be able to use your ATM card at any ATM with zero fees, open a CMA and link it to overdraft to your brokerage. If you want to use the brokerage-only, you can, but I see no reason to. The extra complication from having the CMA (overdraft from the brokerage) is worth the simplicity of using any ATM I want with zero fees.
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Re: Fidelity as a one stop shop

Post by JoMoney »

One could also just use the CMA account rather than have a brokerage account in addition. The CMA is a brokerage account, unless you want margin or options trading, you can hold all the same stocks, bonds, mutual funds, brokered CDs etc.. in the CMA account.
"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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Re: Fidelity as a one stop shop

Post by anon_investor »

nalor511 wrote: Sun Aug 07, 2022 3:04 pm
JoMoney wrote: Sun Aug 07, 2022 2:39 pm
nalor511 wrote: Sun Aug 07, 2022 2:34 pm
JoMoney wrote: Sun Aug 07, 2022 2:32 pm
muffins14 wrote: Sun Aug 07, 2022 2:24 pm You could just use a brokerage, no need for CMA plus overdraft protection
:thumbsup
You can add a debit card, check writing, BillPay, and by default have the ACH routing/account number access to a regular Fidelity brokerage account.
Brokerage has debit card fees unless you're a Private Client or other high value client. Click "debit levels" https://www.fidelity.com/cash-management/atm-debit-card
Fidelity doesn't charge any fees for a ATM debit card. If you use the ATM card to get cash at an ATM machine that charges a fee, Fidelity doesn't reimburse unless you qualify (whereas they do for the CMA account.)
If someone elects to go that route, and uses the ATM frequently, there are lots of ATMs that do not charge a fee (same ATM network as PNC bank.)
Potato, potatoe. If you want to be able to use your ATM card at any ATM with zero fees, open a CMA and link it to overdraft to your brokerage. If you want to use the brokerage-only, you can, but I see no reason to. The extra complication from having the CMA (overdraft from the brokerage) is worth the simplicity of using any ATM I want with zero fees.
Will the CMA automatic overdraft from brokerage work properly if Money Transfer Lockdown is activated in your brokerage account?
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Re: Fidelity as a one stop shop

Post by careerdata »

anon_investor wrote: Sun Aug 07, 2022 2:42 pm

You mentioned in another thread you wanted to build up after tax assets to transfer to BoA/ME to get to the Platinum Honors tier of BoA Preferred Rewards status. You can build those up at Fidelity then ask ME for a bonus for transferring them to ME from Fidelity.
Yes, that is the plan I am leaning towards recommending to my wife as things become clearer to me. Thank you again for all your wonderful help in that thread as my wife and I think through our options with BoA, Merril Edge (ME), SoFi, and Fidelity!

If, however, we move our current 24.1k in BoA savings to an ME money market fund to keep the BoA Gold-tier 25% booster for the BoA credit card that we still need to apply for, would that preclude us from this ME bonus you are referring to if we later move a large amount from Fidelity to get the $100k Platinum Honors tier? I don't think missing out on the bonus would change our thinking but a bonus is a bonus if you can get it!

Regards,

Joe
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Re: Fidelity as a one stop shop

Post by anon_investor »

careerdata wrote: Sun Aug 07, 2022 3:14 pm
anon_investor wrote: Sun Aug 07, 2022 2:42 pm

You mentioned in another thread you wanted to build up after tax assets to transfer to BoA/ME to get to the Platinum Honors tier of BoA Preferred Rewards status. You can build those up at Fidelity then ask ME for a bonus for transferring them to ME from Fidelity.
Yes, that is the plan I am leaning towards recommending to my wife as things become clearer to me. Thank you again for all your wonderful help in that thread as my wife and I think through our options with BoA, Merril Edge (ME), SoFi, and Fidelity!

If, however, we move our current 24.1k in BoA savings to an ME money market fund to keep the BoA Gold-tier 25% booster for the BoA credit card that we still need to apply for, would that preclude us from this ME bonus you are referring to if we later move a large amount from Fidelity to get the $100k Platinum Honors tier? I don't think missing out on the bonus would change our thinking but a bonus is a bonus if you can get it!

Regards,

Joe
I think if you contacted ME and said hey I have $80k of new external money I want to transfer to ME, will you give a transfer bonus, they may. Other brokerages often do.
careerdata
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Re: Fidelity as a one stop shop

Post by careerdata »

nalor511 wrote: Sun Aug 07, 2022 2:35 pm
careerdata wrote: Sun Aug 07, 2022 2:21 pm
nalor511 wrote: Sun Aug 07, 2022 1:06 pm
You can also just open a CMA with $0, turn on free self funded overdraft to brokerage (where the money is), and then you've got free debit usage and you can keep your brokerage money right where it is now
Hmm...that sounds VERY interesting! How does this sound as a potential plan:

--Open up a CMA with Fidelity with $0
--Turn on the free self-funded overdraft to brokerage option you referenced
--Set up my wife's biweekly paycheck (the net amount varies between $1,600 and $2,500 depending upon whether or not she picks up an extra shift as a nurse) to direct deposit into our Fidelity brokerage account
--Leave the default fund in our Fidelity brokerage account as SPAXX
--On payday every other Friday, once I see the paycheck invested in SPAXX, I do the quick 10-second trade on the Fidelity phone app from SPAXX to SPRXX to get the current 7-Day SEC Yield of 2.0%

I see nothing but positives to doing this compared to keeping our checking account with BofA where we earn no interest as of today and this plan is even better than opening up a SoFi checking account as the maximum APR we can earn on dollars in the SoFi checking account is currently 1.8%. The other positive, connected to this mega thread, is that we already have a larger portion of our retirement assets with Fidelity [former employer 401(k), former employer HSA account, and both of our Roth IRAs].

Is there a stealthy "X" or "Y" variable that I am not thinking through correctly regarding this potential plan before I run it by my wife for her consideration?

Regards,

Joe
Your plan is sound. Nothing but positives. This is similar to what I recently switched to doing.
Thank you! Having someone logic check your thinking AND having someone who has been doing the same thing that you are considering and having good results are just two of the many benefits of this amazing community. I recommend this site to my peers at work, friends, and family as the very first place I go when I am struggling with financial or other challenging life decisions. The life knowledge that is present and the willingness to help each other is almost hard to believe. If I could just stop the clock of work and life for an extended period and just read-read-read then I would be a happy camper AND much wiser! :happy

Regards,

Joe
nalor511
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Re: Fidelity as a one stop shop

Post by nalor511 »

anon_investor wrote: Sun Aug 07, 2022 3:11 pm
nalor511 wrote: Sun Aug 07, 2022 3:04 pm
JoMoney wrote: Sun Aug 07, 2022 2:39 pm
nalor511 wrote: Sun Aug 07, 2022 2:34 pm
JoMoney wrote: Sun Aug 07, 2022 2:32 pm
:thumbsup
You can add a debit card, check writing, BillPay, and by default have the ACH routing/account number access to a regular Fidelity brokerage account.
Brokerage has debit card fees unless you're a Private Client or other high value client. Click "debit levels" https://www.fidelity.com/cash-management/atm-debit-card
Fidelity doesn't charge any fees for a ATM debit card. If you use the ATM card to get cash at an ATM machine that charges a fee, Fidelity doesn't reimburse unless you qualify (whereas they do for the CMA account.)
If someone elects to go that route, and uses the ATM frequently, there are lots of ATMs that do not charge a fee (same ATM network as PNC bank.)
Potato, potatoe. If you want to be able to use your ATM card at any ATM with zero fees, open a CMA and link it to overdraft to your brokerage. If you want to use the brokerage-only, you can, but I see no reason to. The extra complication from having the CMA (overdraft from the brokerage) is worth the simplicity of using any ATM I want with zero fees.
Will the CMA automatic overdraft from brokerage work properly if Money Transfer Lockdown is activated in your brokerage account?
No
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anon_investor
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Re: Fidelity as a one stop shop

Post by anon_investor »

nalor511 wrote: Sun Aug 07, 2022 3:53 pm
anon_investor wrote: Sun Aug 07, 2022 3:11 pm
nalor511 wrote: Sun Aug 07, 2022 3:04 pm
JoMoney wrote: Sun Aug 07, 2022 2:39 pm
nalor511 wrote: Sun Aug 07, 2022 2:34 pm

Brokerage has debit card fees unless you're a Private Client or other high value client. Click "debit levels" https://www.fidelity.com/cash-management/atm-debit-card
Fidelity doesn't charge any fees for a ATM debit card. If you use the ATM card to get cash at an ATM machine that charges a fee, Fidelity doesn't reimburse unless you qualify (whereas they do for the CMA account.)
If someone elects to go that route, and uses the ATM frequently, there are lots of ATMs that do not charge a fee (same ATM network as PNC bank.)
Potato, potatoe. If you want to be able to use your ATM card at any ATM with zero fees, open a CMA and link it to overdraft to your brokerage. If you want to use the brokerage-only, you can, but I see no reason to. The extra complication from having the CMA (overdraft from the brokerage) is worth the simplicity of using any ATM I want with zero fees.
Will the CMA automatic overdraft from brokerage work properly if Money Transfer Lockdown is activated in your brokerage account?
No
What if the core position in the CMA has $0, but a MMF held in the CMA has $, will Fidelity sell from the MMF to cover a withdrawal?
nalor511
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Re: Fidelity as a one stop shop

Post by nalor511 »

anon_investor wrote: Sun Aug 07, 2022 3:56 pm
nalor511 wrote: Sun Aug 07, 2022 3:53 pm
anon_investor wrote: Sun Aug 07, 2022 3:11 pm
nalor511 wrote: Sun Aug 07, 2022 3:04 pm
JoMoney wrote: Sun Aug 07, 2022 2:39 pm

Fidelity doesn't charge any fees for a ATM debit card. If you use the ATM card to get cash at an ATM machine that charges a fee, Fidelity doesn't reimburse unless you qualify (whereas they do for the CMA account.)
If someone elects to go that route, and uses the ATM frequently, there are lots of ATMs that do not charge a fee (same ATM network as PNC bank.)
Potato, potatoe. If you want to be able to use your ATM card at any ATM with zero fees, open a CMA and link it to overdraft to your brokerage. If you want to use the brokerage-only, you can, but I see no reason to. The extra complication from having the CMA (overdraft from the brokerage) is worth the simplicity of using any ATM I want with zero fees.
Will the CMA automatic overdraft from brokerage work properly if Money Transfer Lockdown is activated in your brokerage account?
No
What if the core position in the CMA has $0, but a MMF held in the CMA has $, will Fidelity sell from the MMF to cover a withdrawal?
Yes. My core position always has $0
muffins14
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Re: Fidelity as a one stop shop

Post by muffins14 »

nalor511 wrote: Sun Aug 07, 2022 3:04 pm
Potato, potatoe. If you want to be able to use your ATM card at any ATM with zero fees, open a CMA and link it to overdraft to your brokerage. If you want to use the brokerage-only, you can, but I see no reason to. The extra complication from having the CMA (overdraft from the brokerage) is worth the simplicity of using any ATM I want with zero fees.
You get zero ATM fees in brokerage with like 250k assets. So, the extra complication from having a CMA is indeed only a complication, with no added benefit other than mental separation of buckets. That does have value for some though
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Re: Fidelity as a one stop shop

Post by iamblessed »

muffins14 wrote: Sun Aug 07, 2022 4:07 pm
nalor511 wrote: Sun Aug 07, 2022 3:04 pm
Potato, potatoe. If you want to be able to use your ATM card at any ATM with zero fees, open a CMA and link it to overdraft to your brokerage. If you want to use the brokerage-only, you can, but I see no reason to. The extra complication from having the CMA (overdraft from the brokerage) is worth the simplicity of using any ATM I want with zero fees.
You get zero ATM fees I brokerage with like 250k assets. So, the extra complication from having a CMA is indeed only a complication, with no added benefit other than mental separation of buckets. That does have value for some though
Or you can use the CMA for everything just like the brokerage for everything. The CMA is also a brokerage account.
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Re: Fidelity as a one stop shop

Post by muffins14 »

Correct, I’m just suggesting that having two accounts is not a strict requirement
Crom laughs at your Four Winds
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Re: Fidelity as a one stop shop

Post by iamblessed »

muffins14 wrote: Sun Aug 07, 2022 4:10 pm Correct, I’m just suggesting that having two accounts is not a strict requirement
No not a all. I like one account for less work at tax time. Less paper work
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Re: Fidelity as a one stop shop

Post by iamblessed »

Will Vanguard Wellesley Income Fund Admiral Shares transfer to Fidelity?
careerdata
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Re: Fidelity as a one stop shop

Post by careerdata »

iamblessed wrote: Sun Aug 07, 2022 4:09 pm
muffins14 wrote: Sun Aug 07, 2022 4:07 pm
nalor511 wrote: Sun Aug 07, 2022 3:04 pm
Potato, potatoe. If you want to be able to use your ATM card at any ATM with zero fees, open a CMA and link it to overdraft to your brokerage. If you want to use the brokerage-only, you can, but I see no reason to. The extra complication from having the CMA (overdraft from the brokerage) is worth the simplicity of using any ATM I want with zero fees.
You get zero ATM fees I brokerage with like 250k assets. So, the extra complication from having a CMA is indeed only a complication, with no added benefit other than mental separation of buckets. That does have value for some though
Or you can use the CMA for everything just like the brokerage for everything. The CMA is also a brokerage account.
Thanks for these additional insights! We only have $13k in our Fidelity brokerage account as of today and our goal is to start growing it in order to prepare for expected larger expenses over the next several years. However, we will likely be splitting our brokerage funds between Fidelity and Merril Edge (ME) in order to get to the Platinum Rewards tier on a BoA credit card. So getting to $250k in Fidelity's brokerage account is way down the road. Does Fidelity just merge the brokerage account into the CMA when you open the CMA, or will they always be separate because the brokerage account was opened first? I don't have a concern with these being separate if needed but maybe there is another option to request from Fidelity when we go to open our CMA.

Another variable among the many we are thinking through--my wife was born and raised in the Philippines and we are trying to make arrangements with her work at the hospital that she can take an extended three-week trip next January. I saw a comment about having unlimited reimbursement of foreign ATM fees with the CMA. Again, this is not a critical factor, but another perhaps on the side of the ledger in opening up a CMA.

Regards,

Joe
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Re: Fidelity as a one stop shop

Post by nalor511 »

careerdata wrote: Sun Aug 07, 2022 4:28 pm
iamblessed wrote: Sun Aug 07, 2022 4:09 pm
muffins14 wrote: Sun Aug 07, 2022 4:07 pm
nalor511 wrote: Sun Aug 07, 2022 3:04 pm
Potato, potatoe. If you want to be able to use your ATM card at any ATM with zero fees, open a CMA and link it to overdraft to your brokerage. If you want to use the brokerage-only, you can, but I see no reason to. The extra complication from having the CMA (overdraft from the brokerage) is worth the simplicity of using any ATM I want with zero fees.
You get zero ATM fees I brokerage with like 250k assets. So, the extra complication from having a CMA is indeed only a complication, with no added benefit other than mental separation of buckets. That does have value for some though
Or you can use the CMA for everything just like the brokerage for everything. The CMA is also a brokerage account.
Thanks for these additional insights! We only have $13k in our Fidelity brokerage account as of today and our goal is to start growing it in order to prepare for expected larger expenses over the next several years. However, we will likely be splitting our brokerage funds between Fidelity and Merril Edge (ME) in order to get to the Platinum Rewards tier on a BoA credit card. So getting to $250k in Fidelity's brokerage account is way down the road. Does Fidelity just merge the brokerage account into the CMA when you open the CMA, or will they always be separate because the brokerage account was opened first? I don't have a concern with these being separate if needed but maybe there is another option to request from Fidelity when we go to open our CMA.

Another variable among the many we are thinking through--my wife was born and raised in the Philippines and we are trying to make arrangements with her work at the hospital that she can take an extended three-week trip next January. I saw a comment about having unlimited reimbursement of foreign ATM fees with the CMA. Again, this is not a critical factor, but another perhaps on the side of the ledger in opening up a CMA.

Regards,

Joe
Brokerage (aka. "the Fidelity account) and CMA (cash management account) are and will always be separate. You can hold securities in either type of account. Each has pros and cons. You can get the pros of each without the cons by holding everything in Brokerage and using CMA for debit transactions, and turning on "self funded overdraft" so that the CMA pulls from Brokerage.
iamblessed
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Re: Fidelity as a one stop shop

Post by iamblessed »

The CMA only uses money from a money market funds so it is safe as a brokerage. It will not sell a mutual fund or stock to pay a bill or debit card from what I understand.
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JoMoney
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Re: Fidelity as a one stop shop

Post by JoMoney »

iamblessed wrote: Sun Aug 07, 2022 6:23 pm The CMA only uses money from a money market funds so it is safe as a brokerage. It will not sell a mutual fund or stock to pay a bill or debit card from what I understand.
The exception to that, would be if someone turned on the "self funded overdraft" to a linked brokerage account, and the brokerage account had margin (you can't have margin on the CMA account). It could be possible to draw against the margin, and if a margin call occurs the security is sold to cover.
"To achieve satisfactory investment results is easier than most people realize; to achieve superior results is harder than it looks." - Benjamin Graham
nonnie
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Re: Fidelity as a one stop shop

Post by nonnie »

As a new Fidelity client wanting to one stop shop, I've been avidly reading this thread prior to speaking with Fidelity. We currently have 5 brokerage accounts (2 individual, 1 joint, 3 retirement). We have ordered checks for the joint account (we need them very occasionally) and debit cards for the two individual accounts. We wish to pay bills out of the 3 non-retirement accounts. We do not wish to use the "bill pay" function but rather continue on with the auto-pay function we have with our credit cards and landlord.

As I understand it, all we need to do is give the routing# and account # to our creditors and the money due creditors will be "pulled" from Fidelity (much as it has been previously from our bank accounts). Money will first be pulled from our Core account but if there's a $0 balance, it will automatically pull from our Premium money market - FDZXX. Since we do have more than $250K, ATM fees under $9.75! per transaction will be reimbursed.

Is my understanding correct? For us, especially since we're consolidating a gazillion bank accounts--actually only a dozen--I'd rather not open two more CMA accounts. The ONLY advantage of doing that I can see would be to keep investments "walled off" in the brokerage account in case of an account breach. Would there be any other advantage for us to have a CMA?

One final question. We're keeping our BofA and USAA accounts because they're tied to Treasury Direct and Medallion guarantees--ya never know-- and our Wells Fargo because of free safe deposit and Medallion guarantee/paper IBond redemptions. I think BofA has a direct deposit requirement to avoid fees. Is the easiest way to handle this to just set up a monthly recurring transfer from B of A ?

Thanks so much for this thread. Until I saw it, I hadn't thought of one-stop shopping at Fidelity!
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Re: Fidelity as a one stop shop

Post by iamblessed »

JoMoney wrote: Sun Aug 07, 2022 6:31 pm
iamblessed wrote: Sun Aug 07, 2022 6:23 pm The CMA only uses money from a money market funds so it is safe as a brokerage. It will not sell a mutual fund or stock to pay a bill or debit card from what I understand.
The exception to that, would be if someone turned on the "self funded overdraft" to a linked brokerage account, and the brokerage account had margin (you can't have margin on the CMA account). It could be possible to draw against the margin, and if a margin call occurs the security is sold to cover.
How about if you had stocks and mutual funds in your CMA with no overdraft. No margin loan in use. I think they are still safe. From the way I understand it they empty the core first then the money market funds then it stops. If I am wrong someone tell me.
Last edited by iamblessed on Sun Aug 07, 2022 6:55 pm, edited 1 time in total.
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JoMoney
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Re: Fidelity as a one stop shop

Post by JoMoney »

nonnie wrote: Sun Aug 07, 2022 6:38 pm... Since we do have more than $250K, ATM fees under $9.75! per transaction will be reimbursed...
Most of what you said looks correct, but I question whether any ATM fees will be reimbursed.
The CMA account reimburses ATM fees, but on other brokerage accounts it's somewhat dependent.
Fidelity describes it as "Fidelity Account owners coded Premium, Active Trader VIP, Private Client Group, Wealth Management, or former Youth Account owner, will be reimbursed for ATM fees charged by other institutions." ... "ATM surcharge fees may be reimbursed on specific account types. Please refer to your Fidelity account Customer Agreement for the terms surrounding reimbursement of fees"

If you plan on using ATM machines that charge a fee, and getting reimbursed is important to you, I would verify that yours is coded as one that will be reimbursed with a Fidelity rep ... else you may need a CMA to get the ATM fee reimbursement benefit.
"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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Re: Fidelity as a one stop shop

Post by anon_investor »

JoMoney wrote: Sun Aug 07, 2022 6:52 pm
nonnie wrote: Sun Aug 07, 2022 6:38 pm... Since we do have more than $250K, ATM fees under $9.75! per transaction will be reimbursed...
Most of what you said looks correct, but I question whether any ATM fees will be reimbursed.
The CMA account reimburses ATM fees, but on other brokerage accounts it's somewhat dependent.
Fidelity describes it as "Fidelity Account owners coded Premium, Active Trader VIP, Private Client Group, Wealth Management, or former Youth Account owner, will be reimbursed for ATM fees charged by other institutions." ... "ATM surcharge fees may be reimbursed on specific account types. Please refer to your Fidelity account Customer Agreement for the terms surrounding reimbursement of fees"

If you plan on using ATM machines that charge a fee, and getting reimbursed is important to you, I would verify that yours is coded as one that will be reimbursed with a Fidelity rep ... else you may need a CMA to get the ATM fee reimbursement benefit.
Does the CMA ATM have a foreign transaction fee if used abroad? I assume that is considered do
different than a reimbursable ATM fee.
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JoMoney
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Re: Fidelity as a one stop shop

Post by JoMoney »

iamblessed wrote: Sun Aug 07, 2022 6:46 pm
JoMoney wrote: Sun Aug 07, 2022 6:31 pm
iamblessed wrote: Sun Aug 07, 2022 6:23 pm The CMA only uses money from a money market funds so it is safe as a brokerage. It will not sell a mutual fund or stock to pay a bill or debit card from what I understand.
The exception to that, would be if someone turned on the "self funded overdraft" to a linked brokerage account, and the brokerage account had margin (you can't have margin on the CMA account). It could be possible to draw against the margin, and if a margin call occurs the security is sold to cover.
How about if you had stocks and mutual funds in your CMA with no overdraft. No margin loan in use. I think they are still safe. From the way I understand it they empty the core first then the money market funds then it stops.
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.
"To achieve satisfactory investment results is easier than most people realize; to achieve superior results is harder than it looks." - Benjamin Graham
nonnie
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Re: Fidelity as a one stop shop

Post by nonnie »

anon_investor wrote: Sun Aug 07, 2022 6:58 pm
JoMoney wrote: Sun Aug 07, 2022 6:52 pm
nonnie wrote: Sun Aug 07, 2022 6:38 pm... Since we do have more than $250K, ATM fees under $9.75! per transaction will be reimbursed...
Most of what you said looks correct, but I question whether any ATM fees will be reimbursed.
The CMA account reimburses ATM fees, but on other brokerage accounts it's somewhat dependent.
Fidelity describes it as "Fidelity Account owners coded Premium, Active Trader VIP, Private Client Group, Wealth Management, or former Youth Account owner, will be reimbursed for ATM fees charged by other institutions." ... "ATM surcharge fees may be reimbursed on specific account types. Please refer to your Fidelity account Customer Agreement for the terms surrounding reimbursement of fees"

If you plan on using ATM machines that charge a fee, and getting reimbursed is important to you, I would verify that yours is coded as one that will be reimbursed with a Fidelity rep ... else you may need a CMA to get the ATM fee reimbursement benefit.
Does the CMA ATM have a foreign transaction fee if used abroad? I assume that is considered do
different than a reimbursable ATM fee.
Great question! Yes, it appears they do --1%, just checked --and it is different from the reimbursable ATM fee.

I have verified twice that over $250K-- and our account--will have ATM fees reimbursed. I went through this previously with another charge, can't remember what it was now where the rep erroneously told me a fee didn't apply, our account wasn't coded correctly. However the rep was wrong, the fee was waived for managed accounts or accounts over $1M.
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Re: Fidelity as a one stop shop

Post by candb »

anon_investor wrote: Sun Aug 07, 2022 6:58 pm
JoMoney wrote: Sun Aug 07, 2022 6:52 pm
nonnie wrote: Sun Aug 07, 2022 6:38 pm... Since we do have more than $250K, ATM fees under $9.75! per transaction will be reimbursed...
Most of what you said looks correct, but I question whether any ATM fees will be reimbursed.
The CMA account reimburses ATM fees, but on other brokerage accounts it's somewhat dependent.
Fidelity describes it as "Fidelity Account owners coded Premium, Active Trader VIP, Private Client Group, Wealth Management, or former Youth Account owner, will be reimbursed for ATM fees charged by other institutions." ... "ATM surcharge fees may be reimbursed on specific account types. Please refer to your Fidelity account Customer Agreement for the terms surrounding reimbursement of fees"

If you plan on using ATM machines that charge a fee, and getting reimbursed is important to you, I would verify that yours is coded as one that will be reimbursed with a Fidelity rep ... else you may need a CMA to get the ATM fee reimbursement benefit.
Does the CMA ATM have a foreign transaction fee if used abroad? I assume that is considered do
different than a reimbursable ATM fee.
No foreign transaction fees.
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anon_investor
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Re: Fidelity as a one stop shop

Post by anon_investor »

candb wrote: Sun Aug 07, 2022 7:06 pm
anon_investor wrote: Sun Aug 07, 2022 6:58 pm
JoMoney wrote: Sun Aug 07, 2022 6:52 pm
nonnie wrote: Sun Aug 07, 2022 6:38 pm... Since we do have more than $250K, ATM fees under $9.75! per transaction will be reimbursed...
Most of what you said looks correct, but I question whether any ATM fees will be reimbursed.
The CMA account reimburses ATM fees, but on other brokerage accounts it's somewhat dependent.
Fidelity describes it as "Fidelity Account owners coded Premium, Active Trader VIP, Private Client Group, Wealth Management, or former Youth Account owner, will be reimbursed for ATM fees charged by other institutions." ... "ATM surcharge fees may be reimbursed on specific account types. Please refer to your Fidelity account Customer Agreement for the terms surrounding reimbursement of fees"

If you plan on using ATM machines that charge a fee, and getting reimbursed is important to you, I would verify that yours is coded as one that will be reimbursed with a Fidelity rep ... else you may need a CMA to get the ATM fee reimbursement benefit.
Does the CMA ATM have a foreign transaction fee if used abroad? I assume that is considered do
different than a reimbursable ATM fee.
No foreign transaction fees.
So no foreign transaction fee for the CMA ATM but a 1% foreign transaction fee for a brokerage ATM?
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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 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.
The ATM-Debit card documentation says there is one. My experience with it (several years ago in Australia) was that if the card was used as a debit card at a POS transaction (like a credit card) then there appeared to be something (I believe 1%) built into the transaction exchange rate but not broken out as a separate fee. I avoided using the card at POS transactions (I had a no transaction fee credit card that had cash rebates I used instead.) When I used the card as an ATM card to get cash out of an ATM, there did not appear to be a difference in the transaction rate relative to the exchange rate I had got on other purchases the same day using a different no-foreign-transaction fee card (but it's hard to tell absolutely as it would be built into exchange rate you get at the moment, not broken out as a separate fee.) ATM fees were reimbursed.
"To achieve satisfactory investment results is easier than most people realize; to achieve superior results is harder than it looks." - Benjamin Graham
nonnie
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Re: Fidelity as a one stop shop

Post by nonnie »

candb wrote: Sun Aug 07, 2022 7:06 pm
anon_investor wrote: Sun Aug 07, 2022 6:58 pm
JoMoney wrote: Sun Aug 07, 2022 6:52 pm
nonnie wrote: Sun Aug 07, 2022 6:38 pm... Since we do have more than $250K, ATM fees under $9.75! per transaction will be reimbursed...
Most of what you said looks correct, but I question whether any ATM fees will be reimbursed.
The CMA account reimburses ATM fees, but on other brokerage accounts it's somewhat dependent.
Fidelity describes it as "Fidelity Account owners coded Premium, Active Trader VIP, Private Client Group, Wealth Management, or former Youth Account owner, will be reimbursed for ATM fees charged by other institutions." ... "ATM surcharge fees may be reimbursed on specific account types. Please refer to your Fidelity account Customer Agreement for the terms surrounding reimbursement of fees"

If you plan on using ATM machines that charge a fee, and getting reimbursed is important to you, I would verify that yours is coded as one that will be reimbursed with a Fidelity rep ... else you may need a CMA to get the ATM fee reimbursement benefit.
Does the CMA ATM have a foreign transaction fee if used abroad? I assume that is considered do
different than a reimbursable ATM fee.
No foreign transaction fees.
I didn't ask, just looked online and saw a 1% fee. Maybe this is another fee that is waived for different levels of accounts?
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Re: Fidelity as a one stop shop

Post by anon_investor »

nonnie wrote: Sun Aug 07, 2022 7:12 pm
candb wrote: Sun Aug 07, 2022 7:06 pm
anon_investor wrote: Sun Aug 07, 2022 6:58 pm
JoMoney wrote: Sun Aug 07, 2022 6:52 pm
nonnie wrote: Sun Aug 07, 2022 6:38 pm... Since we do have more than $250K, ATM fees under $9.75! per transaction will be reimbursed...
Most of what you said looks correct, but I question whether any ATM fees will be reimbursed.
The CMA account reimburses ATM fees, but on other brokerage accounts it's somewhat dependent.
Fidelity describes it as "Fidelity Account owners coded Premium, Active Trader VIP, Private Client Group, Wealth Management, or former Youth Account owner, will be reimbursed for ATM fees charged by other institutions." ... "ATM surcharge fees may be reimbursed on specific account types. Please refer to your Fidelity account Customer Agreement for the terms surrounding reimbursement of fees"

If you plan on using ATM machines that charge a fee, and getting reimbursed is important to you, I would verify that yours is coded as one that will be reimbursed with a Fidelity rep ... else you may need a CMA to get the ATM fee reimbursement benefit.
Does the CMA ATM have a foreign transaction fee if used abroad? I assume that is considered do
different than a reimbursable ATM fee.
No foreign transaction fees.
I didn't ask, just looked online and saw a 1% fee. Maybe this is another fee that is waived for different levels of accounts?
I wonder if there is a 1% fee for use as a debit card but none as an ATM.
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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 7:16 pm...
I wonder if there is a 1% fee for use as a debit card but none as an ATM.
That's what my experience (and others, if you look deep enough back in this thread) seemed to be.
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candb
Posts: 89
Joined: Sun Mar 15, 2020 11:04 am

Re: Fidelity as a one stop shop

Post by candb »

anon_investor wrote: Sun Aug 07, 2022 7:10 pm
candb wrote: Sun Aug 07, 2022 7:06 pm
anon_investor wrote: Sun Aug 07, 2022 6:58 pm
JoMoney wrote: Sun Aug 07, 2022 6:52 pm
nonnie wrote: Sun Aug 07, 2022 6:38 pm... Since we do have more than $250K, ATM fees under $9.75! per transaction will be reimbursed...
Most of what you said looks correct, but I question whether any ATM fees will be reimbursed.
The CMA account reimburses ATM fees, but on other brokerage accounts it's somewhat dependent.
Fidelity describes it as "Fidelity Account owners coded Premium, Active Trader VIP, Private Client Group, Wealth Management, or former Youth Account owner, will be reimbursed for ATM fees charged by other institutions." ... "ATM surcharge fees may be reimbursed on specific account types. Please refer to your Fidelity account Customer Agreement for the terms surrounding reimbursement of fees"

If you plan on using ATM machines that charge a fee, and getting reimbursed is important to you, I would verify that yours is coded as one that will be reimbursed with a Fidelity rep ... else you may need a CMA to get the ATM fee reimbursement benefit.
Does the CMA ATM have a foreign transaction fee if used abroad? I assume that is considered do
different than a reimbursable ATM fee.
No foreign transaction fees.
So no foreign transaction fee for the CMA ATM but a 1% foreign transaction fee for a brokerage ATM?
Not sure about the brokerage ATM....but I've used the CMA debit/ATM card internationally and have not been charged a foreign transaction fee or an ATM fee. It's possible that there's a foreign transaction fee when you use the card as a debit card for purchases (probably so...). Also, there is a 1% foreign transaction fee on the Fidelity credit card. But using the ATM card at an ATM is free of any foreign transaction fees....at least in my experience.
Lyrrad
Posts: 903
Joined: Sun Jul 27, 2008 10:59 am

Re: Fidelity as a one stop shop

Post by Lyrrad »

JoMoney wrote: Sun Aug 07, 2022 6:31 pm The exception to that, would be if someone turned on the "self funded overdraft" to a linked brokerage account, and the brokerage account had margin (you can't have margin on the CMA account). It could be possible to draw against the margin, and if a margin call occurs the security is sold to cover.
One risk that I've seen mentioned is that the margin transaction may not work for all types of transactions at all times, so certain types of transactions may be declined if there is not enough cash in the margin brokerage account.

nonnie wrote: Sun Aug 07, 2022 6:38 pm As I understand it, all we need to do is give the routing# and account # to our creditors and the money due creditors will be "pulled" from Fidelity (much as it has been previously from our bank accounts). Money will first be pulled from our Core account but if there's a $0 balance, it will automatically pull from our Premium money market - FDZXX. Since we do have more than $250K, ATM fees under $9.75! per transaction will be reimbursed.
In my experience with the CMA, all ATM fees of any amount are reimbursed, even if it is more than $9.75. I've had $9.99 ATM fees reimbursed many times.
nonnie wrote: Sun Aug 07, 2022 6:38 pm One final question. We're keeping our BofA and USAA accounts because they're tied to Treasury Direct and Medallion guarantees--ya never know-- and our Wells Fargo because of free safe deposit and Medallion guarantee/paper IBond redemptions. I think BofA has a direct deposit requirement to avoid fees. Is the easiest way to handle this to just set up a monthly recurring transfer from B of A ?
Another option for BoA is to use their Preferred Rewards program. I got a transfer bonus and a significant bonus on spending on my BoA cash back credit cards. It's possible a recurring transfer to BoA will work to avoid fees, though I haven't tried it myself.
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.
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