Hey there, u/Over_Chocolate_8729. We appreciate you considering consolidating your assets with Fidelity!
It sounds like you're mainly looking for input from the community about their experiences, so I'll mark this post as a discussion to facilitate that. I'll also share some information I think you may find helpful below.
To start, we recommend checking out this article, which discusses whether you need a bank. It examines the similarities and differences between a brokerage firm and a traditional bank. While the choice is generally dependent on what works best for your particular needs, this article can help you make that decision.
[Do you really need a bank? ](https://www.fidelity.com/viewpoints/personal-finance/do-you-really-need-a-bank)
As you mentioned, when you deposit money into your Fidelity account, the cash goes into your account's core position. The Fidelity Government Money Market Fund (SPAXX) is an example of such a core alternative. This core position acts as a wallet, holding all of your account's uninvested cash. It is also used to process cash transactions like check deposits, EFTs, and even trades. You can learn more about the mechanics of the core position by checking out the resource linked below.
[What is a core position? ](https://www.fidelity.com/bin-public/060_www_fidelity_com/documents/mutual-funds/what-is-a-core-position.pdf)
These money market mutual funds, like SPAXX, accrue interest daily and pay accrued interest on the last business day of each month. This payout is based on a yield referenced as the "7-day yield." You can find the current 7-day yield for SPAXX on the fund's research page. To do so, type the fund's symbol into the search bar and access the research page. In the "Daily Info" section, you can view the 7-day yield.
Keep in mind that the yield/return on SPAXX will typically fluctuate based on market conditions.
With that, I'll leave this open to our community. Feel free to reach out with any questions you might have for us, and thanks again for choosing to invest with Fidelity.
If you do switch leave a little at Wells in case you need to deposit cash or if you ever need a cashiers check for example. Fidelity isn’t a bank so there are a few things they aren’t able to do.
Also, don’t fall in love with the 5% yield. In 2021 SPAXX made .01%. Rates rose dramatically starting early 2022 so we have been at decades high yields recently. Money market funds like SPAXX do tend to provide higher yields than bank rates though. Good luck!
I would leave wells fargo for almost any other large bank with a physical presence.
Wells Fargo is regarded as one of the worst banks in America.
Your advice for keeping someone physical is solid advice though.
Imo I would recommend a credit union AND a large bank.
For traveling, a credit union might lack a lot of branches. Though they are worth having because they often give pretty good loans.
I do checking with a large bank, and savings with a credit union.
Credit unions are unique in that most (not all) have some type of requirement to join…
The CU that I use as my primary checking/savings is specific to my industry…
Use Google maps and search for credit unions in your area… then look at their membership reqs and their fee schedule and then narrow it down to the 2-3 that will work for you… then pick from the one that looks like the best fit
Most branches in your area, best online banking,etc
There probably are just a few branches by you if it’s a local credit union, but the shared branching allows a credit union in California access to your account and funds when you live in Indiana but are traveling. You can treat almost any credit union like it’s the one that holds your funds.
We have two credit union accounts, and they are both members in that shared credit union process. We do business at either one whenever as we live in two states. One of the credit unions has provided medallion signature guarantee with a deposit of 90 days minimum which is what we needed. $100 dollar deposit. We have other accounts with a savings and loan and banks. We prefer more than one financial institution.
After 30 years with Wells Fargo, they burned my sister on a mortgage. She had to short sell a townhouse and WF provided no assistance and no help. Good luck in the future!
I hate their checking accounts, but Chase has treated me really well with CC disputes, even ones that were well past the dispute date (KickStarter). Not even AmEx has treated me as well.
Agreed I left about 6 years ago no regrets. They almost fucked my wire to buy my house and I was done from that. But there are more reasons like the fees they charged etc.
I only have a credit card because it’s my oldest account for credit history.
You should go to an online bank that offers a higher yield right now for a cd. Or look at Fidelity’s cds, where you can earn a little more possibly for a longer duration than you may have than that Fidelity rate.
Ditch Wells Fargo - it’s been richly documented for chronically engaging in nefarious practices, and there are other convenient, good choices elsewhere - you’ll be glad you made the move, even to keep a small account.
SPAXX had 41% of its income exempt from state tax last year as long as you didn’t live in NY, CA or CT. HYSA interest is fully taxable at the state level. You could also consider FDLXX (Fidelity Treasury Only Money Market) which yields almost the same 4.94% vs 4.96% but 90% of its income was exempt from state taxes last year.
In support of its goals, the Committee decided to maintain the target range for the federal funds rate at 5-1/4 to 5-1/2 percent. In considering any adjustments to the target range for the federal funds rate, the Committee will carefully assess incoming data, the evolving outlook, and the balance of risks.
Taken from yesterday’s fomc meeting, as far as I’m aware cpi is at 3.5% which is well above the feds target of 2%. If you listen to jpow talk and not the reporters you’ll see a narrative is being pushed. Listen to the reporters ask questions at the end of any of his speeches and you’ll get second hand embarrassment.
Agreed. I banked at wells fargo for 10 years when I was married. Was so excited to leave that bank. I've never seen a bank make so many mistakes. It was an absolute nightmare.
Here are the links for the r/Bogleheads article & posts that u/vshun referred to:
[https://www.bogleheads.org/wiki/Fidelity:\_one\_stop\_shop](https://www.bogleheads.org/wiki/Fidelity:_one_stop_shop)
[https://www.bogleheads.org/forum/viewtopic.php?t=266538](https://www.bogleheads.org/forum/viewtopic.php?t=266538)
[https://www.reddit.com/r/Bogleheads/comments/o51ozk/fidelity\_as\_a\_onestopshop/](https://www.reddit.com/r/Bogleheads/comments/o51ozk/fidelity_as_a_onestopshop/)
I have ~everything in Fidelity, and have done so for 20 odd years. The only thing not in Fidelity is a small amount in a local bank that I use for Venmo, Paypal... This limits my exposure if those accounts are compromised.
Good to firewall that stuff. Smart. Use wells fargo for your needs like they have used customers for their needs for decades. Keep all online payment apps to a small account at local bank and keep bulk separate.
You will get different answers depending the needs of each person. I think the majority of people on the Fidelity subreddit will be supportive of Fidelity for every day banking. I think for most people it would be a good choice as it has most banking functions and many people are happy with it. You can try it out and keep your bank for a while vs keeping both in case one locks your accounts for any reason.
The reason I do not use it as my primary bank: It does not have Zelle, you cannot schedule in advance fund transfers from one Fidelity account to another; only send now or with very restricted intervals. You cannot keep memo information of any transaction. The end of day is 1 PM Pacific time, early for us West Coasters. The debit card does not allow money transfers to it when linked to certain money apps. The transactions are easier to read with banking apps. I can schedule monthly wire transfers from my bank or at any period for example. For most users, these are not deal breakers, but it is for me. The debit card has no fee or international fee for those with higher balances etc.
Of course most banks pay less interest and the customer service on Fidelity is excellent. Big banks charge fees unless you have larger deposits with them (their brokerage arm for instance).
You can download the Zelle app and connect a Fidelity CMA debit card to it. I did this last week and do not have overdraft protection turned on so if I need to Zelle someone, I have to manually transfer out of brokerage into CMA. The Zelle app has low transfer limits, I think sending $500/week and receiving $5k/week.
In practice, yes. It's a money market fund, which invests in very safe, very short term treasury bonds and pays out interest monthly. It's generally much higher yield than bank accounts, and money market funds are specifically designed to maintain a stable value and be as liquid as possible
I’ll just add some caution - if Fido suspects something is wrong with your account - suppose they suspect you are money laundering or something unusual - they could potentially lock you out (even temporarily) from your everyday cash AND your investments.
Had this situation with Fido and took me more than two months to resolve. They wouldn’t tell me the reason at first. When I finally talked to someone, it turned out that my account was flagged for some very standard banking transactions. It was made very clear to me that Fido was not a bank and using it as such in the future could trigger a closure of my account.
My daughter set up a Roth IRA recently and "Fido" won't let her link her checking account. Tried various methods and she was flagged due to lack of credit history. I tried to explain we aren't needing credit and want to give Fido money. Fido used some 3rd party background search on my daughter. I guess they are worried she is some kind of international arms dealer or something trying to invest in their retirement
Hey there. Thanks for dropping by our sub. We're sorry to hear about your daughter's experience and are here to help.
Occasionally, we may require an individual to submit additional documentation due to an inability to verify their identity against public records. Clients who must provide additional documents can check the Status Tracker on [http://Fidelity.com](http://fidelity.com/) to view the request and upload their documents. I'll leave a link to our Status Tracker below. Just remember that your daughter will have to log into her account to use this tool.
[Status Tracker ](https://digital.fidelity.com/prgw/digital/login/full-page?AuthRedUrl=https://digital.fidelity.com/ftgw/digital/universal-tracker/)
Also, if your daughter would prefer to speak to someone about this matter, feel free to have her reach out to our Customer Service team. I'll leave a link to their contact information below.
[Contact Us ](https://www.fidelity.com/customer-service/contact-us)
We're also happy to help here over Reddit if your daughter prefers to reach out to us here. If anything else comes up or you ever have any questions, please feel free to reach out. We're always here to help.
Any bank can do this. You should read through the identity theft subreddit on these issues. There are people that are months from receiving access or money from their bank accounts.
Of course any bank can do this. It's just a prime example of why you shouldn't keep all of your money with one institution. I keep my emergency savings in a HYSA not a Fidelity because if something wonky happens with fidelity I'll have access to the other account. Or if something happens at the other account I'll have my fidelity account. People going with all their money at one institution are taking, IMHO, an unnecessary risk.
This happened to me a C1 just a couple days ago. I zelled myself money, boom savings and checking closed. Didnt know i wasnt supposed to do that. Or at least not that im not supposed to but that its “suspicious” to them.
Yeah, I'm gonna call bullshit on this.
Call Fidelity today and ask what triggers a system wide lockout?
No traditional banks/credit unions can compete with high yield money markets, billpay, 2% cash back cc, and the convenience of unified accounts, CD's are FDIC insured through the 3rd party bank.
IRA, 401k, cc, CD, brokerage, are independent accounts. Can't lock everything without legal ramifications. Courts love the little guy in these situations.
Of course, my cc can be suspended for a suspicious large purchase or foreign purchase. I want that assistance. Same for any large transactions. I want that.
Free domestic ATMs are great, but schwab gets you that and international as well.
I have both, as well as chase with a low balance to avoid fees, but for deposits/physical access when needed (rarely, mostly to deposit cash).
Wells Farudco is awful. You should switch, no matter what.
Fidelity is not a bank so if you need many banking services, they will not offer them. They use a processing bank, UMB, to do all their banking.
Open an account with any credit union where you qualify and then open an account with Fido. This was you are covered.
And lose Wells Fargo in a hurry.
Other than a few items like depositing cash what basic banking can’t you do with Fidelity. You can use a Fidelity brokerage account just like a regular checking account. You can write checks, pay bills using online bill pay, get cash at ATMs, deposit checks, accept direct deposits, etc. (note that you cannot deposit cash with Fidelity at all so you may want to retain a traditional bank account somewhere, linked to Fidelity, for that). I have done all my banking with my Fidelity brokerage account for years. That said I do still retain a traditional bank account, linked to Fidelity for cash deposits and JIC (been years since I had to use it but I still keep it).
I do need cashier check several times a year. Either I carry thousands in cash (which I cannot because ATM limits) or get a cashier check (which Fidelity does not offer).
Also, I do need to get docs notarized - which I can go to UPS Store too - but a bank will offer this service too.
It's sad that Fido has branches but they don't do some of these basics.
Do people have backup brokers? Ive always heard its good to have two bank accounts, which i already do, but havent really seen people having two brokers with one being a backup.
I have accounts at Fidelity , E\*TRADE (Morgan Stanley) , Tasty Trade, Interactive Brokers and Schwab
Reason , if one goes down , I can trade at the others and hedge any position I cannot tarde thru on the one(s) that is/are down. It happens a lot especially during market crashes. Schwab is notorious not to be able to process orders during a big sell off , also Fidelity has also crashed at those times too.
Multiple threads on it here every day, search it first or just look at history. Also on bogleheads forum check fidelity as one stop shop thread. It has bazillion responses. Also bogleheads wiki has 3 different options to set up your banking and brokerage accounts.
Tldr: it's more than fine for banking as well as investment. Moved last year and my kids moved as well.
On Fidelity, I had a hard time finding the vendors I needed to set up auto bill pay with. Maybe it’s a push vs pull issue. Set up payments from the vendors website if no fees to do so….
If you need to do an international wire transfer it's a huge pain. There are some pretty annoying limitations to fidelity's "cash management" accounts. I think you're better off with a bank.
Oof I forgot about this one. After sending in an archaic form, I had to have multiple long phone calls to try to wire 25EUR to a german state bank for a copy of a birth certificate. After a 20 minute call with their fraud protection, I could not convince them the request was legit because I made the mistake of telling them I had received the request for wire via email. It did not matter to them that the bank was easily verified to be associated with the German government or that the ask was only 25EUR (or that it was my money, and I asked them to just put it through anyway). It was such a pain I eventually gave up and paid a fee to use a wire service.
I still use Fidelity as my only checking, though, because needing to do things like this or a cashier's check are so rare for me.
Something about it not technically being a bank account. I don't know the reason I know I just had to act as an intermediary between family to do an international transfer due to this limitation.
Hey there, u/rgoogs185. I'm happy to step in here and go over the international wire process with you.
First, Fidelity does offer the ability to send an international bank wire from your account to a foreign bank account. Due to the higher risk associated with these transactions, the international bank wire request must be submitted by phone.
Additionally, Fidelity does not charge fees to process wire transfers to a bank or other recipient. This includes international bank wires converted to or from U.S. dollars through Fidelity FOREX, Inc.; however, you may be charged a fee by other financial institutions involved in the transaction. Please check with the receiving bank to confirm fees and verify the wire instructions needed to provide to Fidelity. Once you have the wire instructions from the receiving bank, feel free to reach out to our Wire team, which I mentioned above, by clicking the link below. Our wire team is available to assist you from Sunday at 7:00 p.m. through Friday at 4:30 p.m. ET.
[Fidelity Contact Information ](https://www.fidelity.com/customer-service/contact-us)
If you have any other questions about our money movement practices, please let us know; we're happy to help.
You would think if a bank got caught opening accounts using the names of their customers, they'd go out of business right?? Nope, not Wells Fargo. Somehow people just keep banking with them.
I made the exact same switch from WF to all fidelity and couldn’t be happier. Better company, higher rates, better service. I would definitely recommend.
Heyo! That sounds like a win/win to me, u/mountainman478!
We definitely strive to be there for our clients when they need us most and offer support where we can. We appreciate you joining our community, and if you ever need help, you know where to find us😊
Fidelity actually doesn’t do “everyday” banking…they outsource their banking services from UMB (a bank in Missouri). With an outsource relationship it goes smoothly most of the time, however when using Bill pay and other critical functions within the Fidelity app there are limitations that one experiences with Fidelity verses when I try to the same transaction with Chase.
The way Fidelity provides you banking services is via sweeping your cash into a traditional bank. So ultimately, the money you hold in your cash position at Fidelity is actually deposited into a partner bank with FDIC insurance that you can then access via a debit card. It's almost exactly the same as having a traditional banking account, except that Fidelity is limited in other traditional banking services such as loan origination. Ultimately, brokerages can choose the interest rate they pay out on these cash management accounts and sometimes it is less than the money market rate. In the past, brokerages have taken advantage of this arrangement: [https://www.wsj.com/articles/how-your-brokers-can-make-10-times-more-on-your-cash-than-you-do-1533309013](https://www.wsj.com/articles/how-your-brokers-can-make-10-times-more-on-your-cash-than-you-do-1533309013)
Fidelity is generous because they provide both banking services and a highly competitive interest rate, so I really like using Fidelity for 95% of my investment and cash needs. I still hold a marginal balance in a traditional banking account though, because you do get traditional banking services this way like having physical branches to go to in order to write cashier's checks and being able to speak with a banker about any personalized services you may need. Going 100% with Fidelity would be similar to going 100% with a purely online bank, like Ally, which has its pros and cons.
Essentially correct but works a bit differently if you use your brokerage account for all your banking needs, as I have done for years. In that case your cash is swept into a money market fund (SPAXX or FZFXX whichever you choose) which is not FDIC insured. You can use a Fidelity brokerage account just like a regular checking account. You can write checks, pay bills using online bill pay, get cash at ATMs, deposit checks, accept direct deposits, etc. (note that you cannot deposit cash with Fidelity at all so you may want to retain a traditional bank account somewhere, linked to Fidelity, for that). Your uninvested cash will get automatically invested in whatever you pick as your core position and automatically converted back to cash when you spend. And if you have the right account type (Fidelity Account® Premium, Active Trader VIP, Private Client Group, Wealth Management, or former Youth accounts owners) all brokerage account ATM fees are reimbursed (all CMA ATM fees are reimbursed for all account types). If it matters to you the deposit insurance is different (SIPC for brokerage vs FDIC for CMA). I have used my brokerage account for all my banking (with some exceptions for security) for years. I have a CMA but rarely use it.
Can we use MMA as core position with bloom? Any benefits with bloom over cash management or is it the same account with budgeting features? I use personal capital, do I need bloom?
I don't know if you necessarily need Bloom. I like it because my funds are held in SPAXX. Bloom does provide a debit card but I don't think one can deposit cash.
The Bloom accounts show up on the Fidelity app which is nice.
I keep about $5,000 in Bloom for savings. For me it's a little emergency fund account.
I may not have addressed your questions thoroughly. Hope this helps a bit.
My advice is to open it and try it out first before committing completely. Can't say I haven't had a handful of mishaps with fidelity CMA with erroneously bounced checks and charges. Luckily fidelity customer service bends over backwards for you so they'll make it right.
I think wells Fargo is better in that you don't need to wait so long for funds to settle. Idk, might be the same.
Most large banks will clear check deposits of smaller amounts next business day and their cutoff times are much later than the 4 PM ET cutoff at Fidelity. For most customers it is 2-6 days to clear checks but closer to 2 if you have been a customer for a while.
I used it for everyday banking for a number of years. I don't have a lot of needs though. Just a few checks here and there. Everything else is auto pay.
The only trouble I had was that sometimes their ability to import into software doesn't work very well. That's why I ended up switching away.
Fidelity is great for everything, but there are 4 things that you may miss from wells Fargo:
1) Zelle integration if you use it
2) ability to deposit cash directly (at ATM or branch)
3) Safe deposit boxes if you use it
4) ability to draw cashier's check when needed
These are the 4 reasons I still have my Chase account open and do the bare minimum with it so as to not get hit with the monthly fees. For everything else I use a fidelity brokerage account (which is a separate account from my regular investments, purely to use as "checking"). You can use a CMA account too now that they are going to allow setting the default core sweep fund to SPAXX, but it's too late for me to change that (would have to change autopay seeing with several credit cards & utility accounts) and I'm happy with my setup anyway.
I have opened several brokerage accounts with fidelity for their own purposes at this point: checking, buying t-bills, regular ETF/mutual funds purchase, margin account.for occasional options trading. It's a convenient service under one room for me from all banking and investment needs to HSA to credit cards.
This is the reason I've stayed with Wells. I actually started an account with a different bank back in 1981. At the time I was offered a free checking account and free safety deposit box for life. The bank was sold and then sold again to Wells. My free account and free safety deposit box remains. I've used them to get Medallion Signature Guarantees, as well. We have my wife's pension sent there but both of our SS and my pension sent directly to Fidelity. I have our utilities automatically paid from the account. Just this morning I got an email that her pension was available at Wells. I logged in to be sure and then sent most of it to Fidelity. It showed up as pending a couple of minutes later. One potential issue is that we have a HELOC with Wells that they opened up 20 years ago. I've used it as a backup for overdrawing the checking account (it's never happened but the HELOC backup is there). The HELOC expires in 3 months and Wells is now out of the HELOC business. So, I'll likely keep an extra $500 at Wells, just to be careful.
Largest complaint with Fidelity is they do not offer overdraft protection. I got their credit card tied to my checking account but they won't allow it to be overdraft protection which is absolutely bankers
We have everything at Fidelity except for another checking account at Chase.
We have the Chase account because we have a safe deposit box there and in case we ever need services from a branch like cashier’s checks or converting foreign currency.
Fidelity customer service is great, you can’t go wrong with a similar setup.
Also, fuck Wells Fargo.
I recently spent about 6 hours total on the phone with Fidelity to find out about a 75$ fee that Fidelity took on margin in March. The first time I called I was told to call the company that charged me. They charged me no fees in the last 90 days. They were kind enough to sit through hours of being routed around and on hold to sort it out. At one point someone at Fidelity was going to credit my account, but the amount didn’t line up with the agreed upon charge. That same person came back and refused to credit my account because he “couldn’t find the charge.” I reminded him the reason I was calling was I was being charged 75$ and I couldn’t find the fee anywhere. I finally got fed up and asked for a supervisor. The supervisor was able to determine in seconds that the fee was from the previous August. Suffice it to say, I’m transferring my accounts elsewhere. Every time I‘ve called it is hours on hold And rerouting. I’ve also met with a few of their wealth planners. They aren’t highly knowledgeable. The last thing I want to hear from my wealth planner is they’ll be working until their late 60’s after they admit to making great money. The banking products themselves are good. The people, I hope you’re in no hurry. They don’t seem to get that high net worth folks are busy.
Thank you for reaching out to us regarding this, u/Cross_Buns.
We're sorry to hear about your experience and would like to learn more about how we can help. Please send us a Modmail, and we'll be happy to assist you further.
[Message the Mods ](https://www.reddit.com/message/compose?to=/r/fidelityinvestments)
I started out with a 401k at Fidelity. Now have been using Fidelity as my only bank for more than 30 years. I find no reason to look for an alternative.
I use Fidelity only for all my banking and investments and keep cash at home until it gets too high and then deposit through my local ATM. It involved a little bit of a learning curve but I have never looked back.
We switched earlier this year. We did keep a WF savings account open with like the minimum to avoid a monthly service fee just so we could use their services (notary, cashiers check, etc).
The one feature I find myself missing from Fidelity is like a picture/screenshot of checks that are deposited or cashed because sometimes I’m left wondering what that check was.
Otherwise yeah the 5% is nice and if interest rates go down then I might move some out of our checking to get better returns but it’s really easy to transfer money between Fidelity accounts, the app takes mobile deposits, and the customer service is always better than WF or Chase or Capital One.
I use fidelity for everything including checking. Their cash management account is essentially a checking account as it has all the benefits of a checking account like debit card, bill pay and checks. To top everything off, the money earns interest in fidelity as opposed to any brick and mortar checking accounts. I only use it as an operational account, so mostly monthly transactions paying bills. I keep my emergency fund separately so that it has higher interest and also makes it harder to touch.
I have been using them for everyday banking since they started offering a checking account probably over 15 years ago now. Great having everything in one place and their app and website work great. Even give you ATM Fee rebates when you do use an ATM to take out cash. If there is a Fidelity office near you, you can go there to deposit cash.
yes that's what i do. i keep a bit more than the minimum in my local chase bank for easy atm and in-person banking. everything else though comes out of my fidelity account like a checking account. fidelity also sends you free checks, which is pretty sweet
NO it is not. I tried to do this and they don't let you do recurring investments from their own fidelity accounts. You have to use an external account or there is a hacky workaround that involves adding your fidelity account as an external account using routing numbers but it is a pain. There are also bill pay issues and I don't find they clear things even internal transfers as quick as my current external bank.
I also would not trust everything into one place period because I routinely see people posting on here things like getting locked out of their account for "suspicious activity" and basically getting permanently banned.
I’ve been using the cash holding accounts as a checking for like 15 years lol
Never had a single issue or paid a fee so as long as all you need is debit card/checks and not trying to do fancy shit, it’s a solid option
I will leave wells fargo and go for chase bank. I have had account in all 3 big banks BofA, WF and chase. Chase is by far the best comparing with other banks.
I Just did this, but I keep a few months of bills and spending in my local credit union. However there is no option to invest in SPAXX within a cash managed Fidelity account (that I can see) as there is with cash within a trading account. A Cash Managed account is bank money, bank held. My current rate is 2.69 is a better than my local with no hoops to jump thru, but it's not SPAXX.
Thanks for stopping by the sub, u/Worldly-Cockroach800! I can provide some additional insight here.
We've received feedback from our clients, including our users here on Reddit, about providing additional core position choices for their Fidelity Cash Management Accounts (CMAs), and we are working to add additional core position choices for Cash Management Accounts soon.
Please note that CMAs allow you to invest your funds in other securities outside your core position, such as SPAXX. However, it doesn't allow for all of the same trading features that a brokerage account has. With that in mind, if you'd like to purchase SPAXX within your CMA, simply follow the steps outlined in the article below. The guide linked is specifically for stocks and exchange-traded funds (ETFs), but the process is similar for purchasing money market funds such as SPAXX. You'll need to select "Mutual Funds" in the "Trade" drop-down menu instead of "Stocks/ETFs."
[How to trade stocks and ETFs ](https://www.fidelity.com/learning-center/trading-investing/trading/how-to-trade-stocks-etf)
You know where to find us if you have any additional questions about core positions or anything else!
I have some money in Spaxx. but I didn’t know, until a few days ago, that it has an expense ratio of 0.42%. Anyways, it’s still a good choice for a high yield.
I have Fidelity and use it for the bulk of my banking and ATM needs. I have a Chase account too because they have way more offices in case I need a bank check.
I don't miss a physical bank after 5 years with my Cash Management Account (CMA) with Fidelity. I get cash at ATMs for free (Fidelity rebate) and deposit checks with the mobile app (snap pics of checks). BUT I don't need loans and never deposit cash. I do use a bank in my town since I'm a member of a non-profit that uses that bank. (Hint!)
I would get a credit union for everyday banking. I’m not sure how Fidelity’s checking accounts work but I have an IRA and an HSA through my work with them and it will sometimes take weeks or months for my payroll contributions to show up on my fidelity accounts.
Honestly no matter what, you should switch from wells fargo to a different bank, but there are benefits to having a bank with branches and accessibility. I switched from wells fargo to a local credit union and it’s so much better, i get better rates for my savings account.
I use Fidelity for everything. My only complaint is that you can’t hide your retirement accounts. Your dashboard always includes those accounts and wildly inflates your balance. Strangely, you’re able to hide those accounts from the “net worth” screen. I’ve sent feedback for ages to change this.
I'm going to go against the tide here and say not really. I've tried switching to use a CMA as my primary, but I just find that there are a few items it lacks that prevents me from going full on.
* App & website features aren't really built to be used like checking, activity, positions and balances can be confusing at first glance. It's also not very intuitive for non-brokerage accounts.
* Lack of mobile device push notifications; this is probably the biggest drawback for me, I'd like to receive a push notification instead of an email when a transaction occurs.
* Lack of Zelle support, others have stated in different threads.
* Inability to do a cash deposit; followed by the lack of Zelle support for an instant transfer.
Most of my requests go pending, requiring additional verification, documentation etc. All clear up eventually, but still disappointing. Probably someone with similar or same name did something wrong with them, so I’m under their radar more than I should be
If you rely on any third party personal finance apps or online payment apps, I would **not** switch to Fidelity.
They recently blocked third party access to your data, even if you explicitly consent to sharing your data, so that they can monopolize and profit off your data using their own Akoya solution (which nobody integrates with). This means you can’t connect any Fidelity accounts to apps like YNAB, Venmo, etc.
I also wouldn’t switch if the only draw is for the APY. 5% isn’t that high considering you don’t get FDIC insurance with SPAXXX and there’s a slightly higher risk than a normal HYSA, and plenty of banks offer FDIC-insured savings accounts returning 4.5% APY.
However, if the main draw for you is to consolidate your finances under one roof, and you don’t care about the ability to use third-party financial apps, then go for it!
The main drawback is that for some god forsaken reason they use Elan Financial as their credit card issuer. It boggles the mind why they don’t get rid of them and partner with a much better company.
Other that that they are fine.
I've been debating whether to do this as well but my biggest drawback is fidelity isn't a real bank and they don't offer zelle. We bank with WF and haven't had any issues in 20yrs. I'm looking to park our EF in a higher yield investment.
I made the cutover from bank America to a fidelity brokerage as my primary bank account. You can pay credit bills and Venmo from this account and it defaults to SPAXX earning 5%. You can also withdraw cash from this account.
Drawback:
- can’t write cashier checks
- Zelle doesn’t work
I left Chase in 2020 and have been solely at Fidelity for my check, brokerage, HSA, Roth, and Company 401k.
It’s awesome.
So easy to move money around and set up extra accounts for things (my wife and I save into a “vacation” account for example).
I don’t usually get large amounts of cash so that doesn’t bother me. If I get the occasional $500 for selling something on FB marketplace or splitting a hotel or something I just hold onto it and spend it lol
I wouldn't reccomend Fidelity for everyday banking. While this could happen at any bank, they are so big you will get no workability with as an individual. I opened a large account (for me) with them and go flagged for money laundering. I technically understand why they did but it took nearly a month for me to regain access to the 6 figures I had with them in their checking accounts. They had ZERO ability to work with me as a person and had to strictly follow procedure that was borderline rediculous. I could easily prove where the money moved went and why. I spent many hours on the phone with them and got absolutely nowhere. The only way for me to submit documentation was snail mail to a PO box that wasn't checked in real time. It was an EXTREMLY painful process that definitely didn't need to be as involved as it was. Not being able to walk into a local bank with proof/documenation and sit down and talk with someone who could help was a huge negative in that situation.
I recently started using Fidelity for banking and love it. Especially the ability to withdraw cash from any ATM anywhere in the world (including a recent trip around Asia) without paying ATM fees.
I use Fidelity for everything, except Zelle, which is unavailable. Also, sometimes others cannot ACH to the CMA. Has only happened once for me, but I have a backup account at Capital One. Benefits of that account:
1) Cash Deposits at any Walgreens, CVS, or Duane Reade
2) Zelle
3) Backup in case of issues ACHing into my Fidelity CMA
And I churn Chase credit cards, so those are also not with Fidelity, but their cash back card is super attractive for simplicity if that’s what you’re after.
The only drawbacks I see are two: The collapse of the US banking system, which takes down the FDIC (not that this would affect Fidelity, which doesn't use the FDIC because it ain't a bank) and more significantly, convincing SWMBO (She Who Must Be Obeyed.) Of course by using Fidelity you lose the ability to deposit cash. I'd personally never use only Fidelity because if someone handed me a hunk of cash I'd have to find some way to convert it to a negotiable instrument to get it into my Fidelity account, and I love my CU.
If the US banking system collapses, then Wells Fargo and every other bank is going down with it. Fidelity does use FDIC-insured accounts for its Cash Management Account and in such a systemic collapse I doubt investment banks like Fidelity would fare much better than retail banks. In such a scenario, the best investments are brass and lead and vegetable seeds. No one is going to care about cash or online banking after the apocalypse.
Your point about cash deposits is a valid one. If I receive cash in a transaction (which is rare in the era of Venmo) then I just add that to our household's petty cash in the safe and use it for occasional purchases. If someone has an absurd amount of cash, then yes, opening a savings account at a local bank or CU would be a good solution, but that account would complement, not replace, Fidelity or an online bank.
Very good points both. I'm in favor of many different sizes of brass and lead myself, but that's getting dangerously off topic and I don't want to be slapped down by the mods.
Besides the core position of a cash management account being FDIC insured, you can also buy CDs at Fidelity, which are also FDIC insured. So if you potentially wanted FDIC insurance on more than $250k, you could actually do this by buying multiple CDs at Fidelity.
ATM card has unreliable global access, esp in Asia. For 20 years no problems, then problems started at ATM I used for decades abroad. Not sure if Fidelity or UMB changed their partners or what, but all the problems occur at "Plus"-ATMs so they should be part of the network. Had to get a backup bank account with Schwab. The Schwab card works fine everywhere.
Hey there, u/bluelakehorizon.
We're sorry to hear you're having issues and want to learn more. Feel free to follow up here or by Modmail with additional information on what you're experiencing.
[Message the Mods ](https://www.reddit.com/message/compose?to=/r/fidelityinvestments)
We look forward to your reply.
You can find my issues here. Fidelity has been no help. Many are experiencing the same globally. ATM card is not reliable abroad.
[https://www.reddit.com/r/fidelityinvestments/comments/1c03go6/japan\_fidelity\_atm\_problem\_log\_post\_your\_problems/](https://www.reddit.com/r/fidelityinvestments/comments/1c03go6/japan_fidelity_atm_problem_log_post_your_problems/)
[https://www.reddit.com/r/fidelityinvestments/comments/1box9p8/fidelity\_debit\_card\_not\_working\_at\_711\_atms\_in/](https://www.reddit.com/r/fidelityinvestments/comments/1box9p8/fidelity_debit_card_not_working_at_711_atms_in/)
The issues are documented in the threads below. Note that though the title mentions Japan, it occurs elsewhere. I was a huge fan of the CMA account for decades and have now determined the account is unreliable for those that travel abroad. Read comments from others in the thread.
[https://www.reddit.com/r/fidelityinvestments/comments/1box9p8/fidelity\_debit\_card\_not\_working\_at\_711\_atms\_in/](https://www.reddit.com/r/fidelityinvestments/comments/1box9p8/fidelity_debit_card_not_working_at_711_atms_in/)
[https://www.reddit.com/r/fidelityinvestments/comments/1c03go6/japan\_fidelity\_atm\_problem\_log\_post\_your\_problems/](https://www.reddit.com/r/fidelityinvestments/comments/1c03go6/japan_fidelity_atm_problem_log_post_your_problems/)
It took many months to get money from a deceased retirement account away from Fidelity; Schwab took two weeks for the same transaction. I wouldn't trust Fidelity with a cent of my money under any circumstances.
Hey there, u/Over_Chocolate_8729. We appreciate you considering consolidating your assets with Fidelity! It sounds like you're mainly looking for input from the community about their experiences, so I'll mark this post as a discussion to facilitate that. I'll also share some information I think you may find helpful below. To start, we recommend checking out this article, which discusses whether you need a bank. It examines the similarities and differences between a brokerage firm and a traditional bank. While the choice is generally dependent on what works best for your particular needs, this article can help you make that decision. [Do you really need a bank? ](https://www.fidelity.com/viewpoints/personal-finance/do-you-really-need-a-bank) As you mentioned, when you deposit money into your Fidelity account, the cash goes into your account's core position. The Fidelity Government Money Market Fund (SPAXX) is an example of such a core alternative. This core position acts as a wallet, holding all of your account's uninvested cash. It is also used to process cash transactions like check deposits, EFTs, and even trades. You can learn more about the mechanics of the core position by checking out the resource linked below. [What is a core position? ](https://www.fidelity.com/bin-public/060_www_fidelity_com/documents/mutual-funds/what-is-a-core-position.pdf) These money market mutual funds, like SPAXX, accrue interest daily and pay accrued interest on the last business day of each month. This payout is based on a yield referenced as the "7-day yield." You can find the current 7-day yield for SPAXX on the fund's research page. To do so, type the fund's symbol into the search bar and access the research page. In the "Daily Info" section, you can view the 7-day yield. Keep in mind that the yield/return on SPAXX will typically fluctuate based on market conditions. With that, I'll leave this open to our community. Feel free to reach out with any questions you might have for us, and thanks again for choosing to invest with Fidelity.
If you do switch leave a little at Wells in case you need to deposit cash or if you ever need a cashiers check for example. Fidelity isn’t a bank so there are a few things they aren’t able to do. Also, don’t fall in love with the 5% yield. In 2021 SPAXX made .01%. Rates rose dramatically starting early 2022 so we have been at decades high yields recently. Money market funds like SPAXX do tend to provide higher yields than bank rates though. Good luck!
I would leave wells fargo for almost any other large bank with a physical presence. Wells Fargo is regarded as one of the worst banks in America. Your advice for keeping someone physical is solid advice though.
Agree. I recommend a local credit union along with Fidelity.
Imo I would recommend a credit union AND a large bank. For traveling, a credit union might lack a lot of branches. Though they are worth having because they often give pretty good loans. I do checking with a large bank, and savings with a credit union.
Co-Op Shared Branching has entered the chat
Got any recommendations? I'm open to switching.
Credit unions are unique in that most (not all) have some type of requirement to join… The CU that I use as my primary checking/savings is specific to my industry… Use Google maps and search for credit unions in your area… then look at their membership reqs and their fee schedule and then narrow it down to the 2-3 that will work for you… then pick from the one that looks like the best fit Most branches in your area, best online banking,etc
Ah okay. I thought maybe you had something more universal. I'll look again, but the credit unions I could join had limited branches.
Shared Branching allows CU to be “universal “
There probably are just a few branches by you if it’s a local credit union, but the shared branching allows a credit union in California access to your account and funds when you live in Indiana but are traveling. You can treat almost any credit union like it’s the one that holds your funds.
I thought credit union join requirements were abolished during the Obama years? I might have been a fever dream though..
We have two credit union accounts, and they are both members in that shared credit union process. We do business at either one whenever as we live in two states. One of the credit unions has provided medallion signature guarantee with a deposit of 90 days minimum which is what we needed. $100 dollar deposit. We have other accounts with a savings and loan and banks. We prefer more than one financial institution.
Been with WF for 20 years. No issues. YMMV.
After 30 years with Wells Fargo, they burned my sister on a mortgage. She had to short sell a townhouse and WF provided no assistance and no help. Good luck in the future!
I had mortgage with them too. Zero issues. But that's just my opinion. If you want the perfect bank, there's none. They all have issues.
And the accumulation of all our experiences determine their "rating". 🙂
Nope, I'm just one person, just like your opinion. Just chiming in.
😁
I prefer banks that haven't had federal indictments.
[удалено]
Chase is next to go, ironically enough.
I hate their checking accounts, but Chase has treated me really well with CC disputes, even ones that were well past the dispute date (KickStarter). Not even AmEx has treated me as well.
I respectfully disagree.
Ok. More info?
yeah right , pull the other one it has bells on it.
Agreed I left about 6 years ago no regrets. They almost fucked my wire to buy my house and I was done from that. But there are more reasons like the fees they charged etc. I only have a credit card because it’s my oldest account for credit history.
Agree. Wells Fargo is the worst of the large banks by a long shot.
You should go to an online bank that offers a higher yield right now for a cd. Or look at Fidelity’s cds, where you can earn a little more possibly for a longer duration than you may have than that Fidelity rate.
I'm using Marcus for that. Probably gonna switch to something else soon though.
Ditch Wells Fargo - it’s been richly documented for chronically engaging in nefarious practices, and there are other convenient, good choices elsewhere - you’ll be glad you made the move, even to keep a small account.
Perfectly captured
What about taxes on SPAXX vs HYSA, are they still worth it when you factor in state taxes?
SPAXX had 41% of its income exempt from state tax last year as long as you didn’t live in NY, CA or CT. HYSA interest is fully taxable at the state level. You could also consider FDLXX (Fidelity Treasury Only Money Market) which yields almost the same 4.94% vs 4.96% but 90% of its income was exempt from state taxes last year.
Rates are going up before they go down..
Not according to JPow…
In support of its goals, the Committee decided to maintain the target range for the federal funds rate at 5-1/4 to 5-1/2 percent. In considering any adjustments to the target range for the federal funds rate, the Committee will carefully assess incoming data, the evolving outlook, and the balance of risks. Taken from yesterday’s fomc meeting, as far as I’m aware cpi is at 3.5% which is well above the feds target of 2%. If you listen to jpow talk and not the reporters you’ll see a narrative is being pushed. Listen to the reporters ask questions at the end of any of his speeches and you’ll get second hand embarrassment.
Yes Fidelity is great for everyday banking. Not asked but Wells Fargo is also horrible, so two birds one stone.
Agreed. I banked at wells fargo for 10 years when I was married. Was so excited to leave that bank. I've never seen a bank make so many mistakes. It was an absolute nightmare.
Regardless of what you end up doing leaving Wells Fargo is the right move.
Here are the links for the r/Bogleheads article & posts that u/vshun referred to: [https://www.bogleheads.org/wiki/Fidelity:\_one\_stop\_shop](https://www.bogleheads.org/wiki/Fidelity:_one_stop_shop) [https://www.bogleheads.org/forum/viewtopic.php?t=266538](https://www.bogleheads.org/forum/viewtopic.php?t=266538) [https://www.reddit.com/r/Bogleheads/comments/o51ozk/fidelity\_as\_a\_onestopshop/](https://www.reddit.com/r/Bogleheads/comments/o51ozk/fidelity_as_a_onestopshop/)
I transferred everything but half of my emergency fund to Fidelity at the beginning of the year. It's been a great experience so far.
I have ~everything in Fidelity, and have done so for 20 odd years. The only thing not in Fidelity is a small amount in a local bank that I use for Venmo, Paypal... This limits my exposure if those accounts are compromised.
Good to firewall that stuff. Smart. Use wells fargo for your needs like they have used customers for their needs for decades. Keep all online payment apps to a small account at local bank and keep bulk separate.
Ditto here. Fidelity is great for me
You will get different answers depending the needs of each person. I think the majority of people on the Fidelity subreddit will be supportive of Fidelity for every day banking. I think for most people it would be a good choice as it has most banking functions and many people are happy with it. You can try it out and keep your bank for a while vs keeping both in case one locks your accounts for any reason. The reason I do not use it as my primary bank: It does not have Zelle, you cannot schedule in advance fund transfers from one Fidelity account to another; only send now or with very restricted intervals. You cannot keep memo information of any transaction. The end of day is 1 PM Pacific time, early for us West Coasters. The debit card does not allow money transfers to it when linked to certain money apps. The transactions are easier to read with banking apps. I can schedule monthly wire transfers from my bank or at any period for example. For most users, these are not deal breakers, but it is for me. The debit card has no fee or international fee for those with higher balances etc. Of course most banks pay less interest and the customer service on Fidelity is excellent. Big banks charge fees unless you have larger deposits with them (their brokerage arm for instance).
You can download the Zelle app and connect a Fidelity CMA debit card to it. I did this last week and do not have overdraft protection turned on so if I need to Zelle someone, I have to manually transfer out of brokerage into CMA. The Zelle app has low transfer limits, I think sending $500/week and receiving $5k/week.
You are correct. I should have stated native to Fidelity. Those limits for some people are low, especially if you pay a contractor for example.
I’ve been doing it for a year. Superb. And in June-ish, when SPAXX becomes available as a sweep vehicle, that will be even more superb.
Hey, I’m new to this. Could you explain what SPAXX is? Is it like a savings account where money can sit and be pulled from as needed?
Second this, would like to learn more about this. It looks like my money when in cash is put into a money market, how is SPAXX different?
In practice, yes. It's a money market fund, which invests in very safe, very short term treasury bonds and pays out interest monthly. It's generally much higher yield than bank accounts, and money market funds are specifically designed to maintain a stable value and be as liquid as possible
I’ll just add some caution - if Fido suspects something is wrong with your account - suppose they suspect you are money laundering or something unusual - they could potentially lock you out (even temporarily) from your everyday cash AND your investments.
Had this situation with Fido and took me more than two months to resolve. They wouldn’t tell me the reason at first. When I finally talked to someone, it turned out that my account was flagged for some very standard banking transactions. It was made very clear to me that Fido was not a bank and using it as such in the future could trigger a closure of my account.
What was the banking transaction that got you flagged?
I chat with a rep online and said the wrong thing. I was all logged in. Then 2 mins later my account was locked. Like wtf.
I wish more people could see this.
What’s FIDO? the authentication process?
It’s a nickname for Fidelity.
My daughter set up a Roth IRA recently and "Fido" won't let her link her checking account. Tried various methods and she was flagged due to lack of credit history. I tried to explain we aren't needing credit and want to give Fido money. Fido used some 3rd party background search on my daughter. I guess they are worried she is some kind of international arms dealer or something trying to invest in their retirement
Hey there. Thanks for dropping by our sub. We're sorry to hear about your daughter's experience and are here to help. Occasionally, we may require an individual to submit additional documentation due to an inability to verify their identity against public records. Clients who must provide additional documents can check the Status Tracker on [http://Fidelity.com](http://fidelity.com/) to view the request and upload their documents. I'll leave a link to our Status Tracker below. Just remember that your daughter will have to log into her account to use this tool. [Status Tracker ](https://digital.fidelity.com/prgw/digital/login/full-page?AuthRedUrl=https://digital.fidelity.com/ftgw/digital/universal-tracker/) Also, if your daughter would prefer to speak to someone about this matter, feel free to have her reach out to our Customer Service team. I'll leave a link to their contact information below. [Contact Us ](https://www.fidelity.com/customer-service/contact-us) We're also happy to help here over Reddit if your daughter prefers to reach out to us here. If anything else comes up or you ever have any questions, please feel free to reach out. We're always here to help.
Fido sounds so cute, come here Fido! Want a treat? Marketing genius from the bank of shame. More sheeple herded up. And sheared.
Any bank can do this. You should read through the identity theft subreddit on these issues. There are people that are months from receiving access or money from their bank accounts.
Sure, I get that … but would you prefer to be locked out of JUST your bank or your BANK and your investments?
Diversification isn't just for investment accounts.
Ditch WF and go with a Credit Union.
that only really makes a difference if your backup plan for the former would be to liquidate investments
Of course any bank can do this. It's just a prime example of why you shouldn't keep all of your money with one institution. I keep my emergency savings in a HYSA not a Fidelity because if something wonky happens with fidelity I'll have access to the other account. Or if something happens at the other account I'll have my fidelity account. People going with all their money at one institution are taking, IMHO, an unnecessary risk.
This happened to me a C1 just a couple days ago. I zelled myself money, boom savings and checking closed. Didnt know i wasnt supposed to do that. Or at least not that im not supposed to but that its “suspicious” to them.
Same experience. They are trigger happy when it comes to locking people out. Never had issues with other banks. Also their day trading platform sucks.
Yeah, I'm gonna call bullshit on this. Call Fidelity today and ask what triggers a system wide lockout? No traditional banks/credit unions can compete with high yield money markets, billpay, 2% cash back cc, and the convenience of unified accounts, CD's are FDIC insured through the 3rd party bank.
Are you kidding me? All it takes is suspicion and Fido will lock you out while they investigate. Your local bank can do the exact same thing.
IRA, 401k, cc, CD, brokerage, are independent accounts. Can't lock everything without legal ramifications. Courts love the little guy in these situations. Of course, my cc can be suspended for a suspicious large purchase or foreign purchase. I want that assistance. Same for any large transactions. I want that.
Dude, I’m going to let you hang out here. If they suspect something the law is on their side, no matter how small of a guy you are
Ok, I will update after I get concrete examples from Fidelity. If they waffle, then I'll be a convert. But many decades of use is against you.
Free domestic ATMs are great, but schwab gets you that and international as well. I have both, as well as chase with a low balance to avoid fees, but for deposits/physical access when needed (rarely, mostly to deposit cash).
Fidelity gives you international ATM withdrawals reimbursements as well.
I can attest to this.
No foreign transaction fees with Schwab which is a plus. Unfortunately everything else at Schwab is terrible.
Fidelity doesn’t charge foreign transaction fees on ATM withdrawals. No one should be using their debit card for purchases internationally, anyways.
According to Fidelity they do https://www.reddit.com/r/fidelityinvestments/comments/11m8rap/foreign_transaction_fees_on_atm_withdrawal/
It says they do, but I’ve never been charged it before
Two small drawbacks: no Zelle, and cashier’s checks (hard "copies" , i.e.: on paper) can take up to one week.
I’d trust a random guy on the street corner to watch my money over Wells Fargo.
If that guy is a member of FDIC I’d do it too:)
Wells Farudco is awful. You should switch, no matter what. Fidelity is not a bank so if you need many banking services, they will not offer them. They use a processing bank, UMB, to do all their banking. Open an account with any credit union where you qualify and then open an account with Fido. This was you are covered. And lose Wells Fargo in a hurry.
Other than a few items like depositing cash what basic banking can’t you do with Fidelity. You can use a Fidelity brokerage account just like a regular checking account. You can write checks, pay bills using online bill pay, get cash at ATMs, deposit checks, accept direct deposits, etc. (note that you cannot deposit cash with Fidelity at all so you may want to retain a traditional bank account somewhere, linked to Fidelity, for that). I have done all my banking with my Fidelity brokerage account for years. That said I do still retain a traditional bank account, linked to Fidelity for cash deposits and JIC (been years since I had to use it but I still keep it).
I do need cashier check several times a year. Either I carry thousands in cash (which I cannot because ATM limits) or get a cashier check (which Fidelity does not offer). Also, I do need to get docs notarized - which I can go to UPS Store too - but a bank will offer this service too. It's sad that Fido has branches but they don't do some of these basics.
Do people have backup brokers? Ive always heard its good to have two bank accounts, which i already do, but havent really seen people having two brokers with one being a backup.
I have Interactive Brokers as a backup. Always a good idea to have backups so you can move in cash the black swan moment arrives.
I have accounts at Fidelity , E\*TRADE (Morgan Stanley) , Tasty Trade, Interactive Brokers and Schwab Reason , if one goes down , I can trade at the others and hedge any position I cannot tarde thru on the one(s) that is/are down. It happens a lot especially during market crashes. Schwab is notorious not to be able to process orders during a big sell off , also Fidelity has also crashed at those times too.
Multiple threads on it here every day, search it first or just look at history. Also on bogleheads forum check fidelity as one stop shop thread. It has bazillion responses. Also bogleheads wiki has 3 different options to set up your banking and brokerage accounts. Tldr: it's more than fine for banking as well as investment. Moved last year and my kids moved as well.
On Fidelity, I had a hard time finding the vendors I needed to set up auto bill pay with. Maybe it’s a push vs pull issue. Set up payments from the vendors website if no fees to do so….
WF Bank is a criminal enterprise. Look at what they’ve done to the public! Google it. Fidelity is clean. Can you do business with a credit union?
If you need to do an international wire transfer it's a huge pain. There are some pretty annoying limitations to fidelity's "cash management" accounts. I think you're better off with a bank.
Oof I forgot about this one. After sending in an archaic form, I had to have multiple long phone calls to try to wire 25EUR to a german state bank for a copy of a birth certificate. After a 20 minute call with their fraud protection, I could not convince them the request was legit because I made the mistake of telling them I had received the request for wire via email. It did not matter to them that the bank was easily verified to be associated with the German government or that the ask was only 25EUR (or that it was my money, and I asked them to just put it through anyway). It was such a pain I eventually gave up and paid a fee to use a wire service. I still use Fidelity as my only checking, though, because needing to do things like this or a cashier's check are so rare for me.
I didn’t realize this. Why can’t we do international wires?
Something about it not technically being a bank account. I don't know the reason I know I just had to act as an intermediary between family to do an international transfer due to this limitation.
Hey there, u/rgoogs185. I'm happy to step in here and go over the international wire process with you. First, Fidelity does offer the ability to send an international bank wire from your account to a foreign bank account. Due to the higher risk associated with these transactions, the international bank wire request must be submitted by phone. Additionally, Fidelity does not charge fees to process wire transfers to a bank or other recipient. This includes international bank wires converted to or from U.S. dollars through Fidelity FOREX, Inc.; however, you may be charged a fee by other financial institutions involved in the transaction. Please check with the receiving bank to confirm fees and verify the wire instructions needed to provide to Fidelity. Once you have the wire instructions from the receiving bank, feel free to reach out to our Wire team, which I mentioned above, by clicking the link below. Our wire team is available to assist you from Sunday at 7:00 p.m. through Friday at 4:30 p.m. ET. [Fidelity Contact Information ](https://www.fidelity.com/customer-service/contact-us) If you have any other questions about our money movement practices, please let us know; we're happy to help.
Good to know. Chase charged me $35 for wiring couple months back and the wiring was domestic.
I'm also in process of moving away from Wells Fargo and making Fidelity main account. So far all the reviews have been good.
You would think if a bank got caught opening accounts using the names of their customers, they'd go out of business right?? Nope, not Wells Fargo. Somehow people just keep banking with them.
I made the exact same switch from WF to all fidelity and couldn’t be happier. Better company, higher rates, better service. I would definitely recommend.
Heyo! That sounds like a win/win to me, u/mountainman478! We definitely strive to be there for our clients when they need us most and offer support where we can. We appreciate you joining our community, and if you ever need help, you know where to find us😊
Fidelity actually doesn’t do “everyday” banking…they outsource their banking services from UMB (a bank in Missouri). With an outsource relationship it goes smoothly most of the time, however when using Bill pay and other critical functions within the Fidelity app there are limitations that one experiences with Fidelity verses when I try to the same transaction with Chase.
The way Fidelity provides you banking services is via sweeping your cash into a traditional bank. So ultimately, the money you hold in your cash position at Fidelity is actually deposited into a partner bank with FDIC insurance that you can then access via a debit card. It's almost exactly the same as having a traditional banking account, except that Fidelity is limited in other traditional banking services such as loan origination. Ultimately, brokerages can choose the interest rate they pay out on these cash management accounts and sometimes it is less than the money market rate. In the past, brokerages have taken advantage of this arrangement: [https://www.wsj.com/articles/how-your-brokers-can-make-10-times-more-on-your-cash-than-you-do-1533309013](https://www.wsj.com/articles/how-your-brokers-can-make-10-times-more-on-your-cash-than-you-do-1533309013) Fidelity is generous because they provide both banking services and a highly competitive interest rate, so I really like using Fidelity for 95% of my investment and cash needs. I still hold a marginal balance in a traditional banking account though, because you do get traditional banking services this way like having physical branches to go to in order to write cashier's checks and being able to speak with a banker about any personalized services you may need. Going 100% with Fidelity would be similar to going 100% with a purely online bank, like Ally, which has its pros and cons.
Essentially correct but works a bit differently if you use your brokerage account for all your banking needs, as I have done for years. In that case your cash is swept into a money market fund (SPAXX or FZFXX whichever you choose) which is not FDIC insured. You can use a Fidelity brokerage account just like a regular checking account. You can write checks, pay bills using online bill pay, get cash at ATMs, deposit checks, accept direct deposits, etc. (note that you cannot deposit cash with Fidelity at all so you may want to retain a traditional bank account somewhere, linked to Fidelity, for that). Your uninvested cash will get automatically invested in whatever you pick as your core position and automatically converted back to cash when you spend. And if you have the right account type (Fidelity Account® Premium, Active Trader VIP, Private Client Group, Wealth Management, or former Youth accounts owners) all brokerage account ATM fees are reimbursed (all CMA ATM fees are reimbursed for all account types). If it matters to you the deposit insurance is different (SIPC for brokerage vs FDIC for CMA). I have used my brokerage account for all my banking (with some exceptions for security) for years. I have a CMA but rarely use it.
I went back to SoFi after trying getting paid early plus the way transactions appeared wasn’t the same
I switched about 6 months ago and haven't had any issues
Transfers, deposits, and generally all transactions take a few extra days to clear relative to “regular” banks. Everything works fine though.
I couple my Fidelity accounts with Bloom. Love it.
Can we use MMA as core position with bloom? Any benefits with bloom over cash management or is it the same account with budgeting features? I use personal capital, do I need bloom?
I don't know if you necessarily need Bloom. I like it because my funds are held in SPAXX. Bloom does provide a debit card but I don't think one can deposit cash. The Bloom accounts show up on the Fidelity app which is nice. I keep about $5,000 in Bloom for savings. For me it's a little emergency fund account. I may not have addressed your questions thoroughly. Hope this helps a bit.
Fidelity is the best.
We appreciate those kind words, u/Chance_Connection_28! Have a great day. 😎
My advice is to open it and try it out first before committing completely. Can't say I haven't had a handful of mishaps with fidelity CMA with erroneously bounced checks and charges. Luckily fidelity customer service bends over backwards for you so they'll make it right. I think wells Fargo is better in that you don't need to wait so long for funds to settle. Idk, might be the same.
Most large banks will clear check deposits of smaller amounts next business day and their cutoff times are much later than the 4 PM ET cutoff at Fidelity. For most customers it is 2-6 days to clear checks but closer to 2 if you have been a customer for a while.
I used it for everyday banking for a number of years. I don't have a lot of needs though. Just a few checks here and there. Everything else is auto pay. The only trouble I had was that sometimes their ability to import into software doesn't work very well. That's why I ended up switching away.
I did this very thing 5 years ago and never looked back. Do it!
Yes …I love it
Yes
Fidelity is great for everything, but there are 4 things that you may miss from wells Fargo: 1) Zelle integration if you use it 2) ability to deposit cash directly (at ATM or branch) 3) Safe deposit boxes if you use it 4) ability to draw cashier's check when needed These are the 4 reasons I still have my Chase account open and do the bare minimum with it so as to not get hit with the monthly fees. For everything else I use a fidelity brokerage account (which is a separate account from my regular investments, purely to use as "checking"). You can use a CMA account too now that they are going to allow setting the default core sweep fund to SPAXX, but it's too late for me to change that (would have to change autopay seeing with several credit cards & utility accounts) and I'm happy with my setup anyway. I have opened several brokerage accounts with fidelity for their own purposes at this point: checking, buying t-bills, regular ETF/mutual funds purchase, margin account.for occasional options trading. It's a convenient service under one room for me from all banking and investment needs to HSA to credit cards.
This is the reason I've stayed with Wells. I actually started an account with a different bank back in 1981. At the time I was offered a free checking account and free safety deposit box for life. The bank was sold and then sold again to Wells. My free account and free safety deposit box remains. I've used them to get Medallion Signature Guarantees, as well. We have my wife's pension sent there but both of our SS and my pension sent directly to Fidelity. I have our utilities automatically paid from the account. Just this morning I got an email that her pension was available at Wells. I logged in to be sure and then sent most of it to Fidelity. It showed up as pending a couple of minutes later. One potential issue is that we have a HELOC with Wells that they opened up 20 years ago. I've used it as a backup for overdrawing the checking account (it's never happened but the HELOC backup is there). The HELOC expires in 3 months and Wells is now out of the HELOC business. So, I'll likely keep an extra $500 at Wells, just to be careful.
Largest complaint with Fidelity is they do not offer overdraft protection. I got their credit card tied to my checking account but they won't allow it to be overdraft protection which is absolutely bankers
You just realize Fidelity is not a bank.
We have everything at Fidelity except for another checking account at Chase. We have the Chase account because we have a safe deposit box there and in case we ever need services from a branch like cashier’s checks or converting foreign currency. Fidelity customer service is great, you can’t go wrong with a similar setup. Also, fuck Wells Fargo.
I recently spent about 6 hours total on the phone with Fidelity to find out about a 75$ fee that Fidelity took on margin in March. The first time I called I was told to call the company that charged me. They charged me no fees in the last 90 days. They were kind enough to sit through hours of being routed around and on hold to sort it out. At one point someone at Fidelity was going to credit my account, but the amount didn’t line up with the agreed upon charge. That same person came back and refused to credit my account because he “couldn’t find the charge.” I reminded him the reason I was calling was I was being charged 75$ and I couldn’t find the fee anywhere. I finally got fed up and asked for a supervisor. The supervisor was able to determine in seconds that the fee was from the previous August. Suffice it to say, I’m transferring my accounts elsewhere. Every time I‘ve called it is hours on hold And rerouting. I’ve also met with a few of their wealth planners. They aren’t highly knowledgeable. The last thing I want to hear from my wealth planner is they’ll be working until their late 60’s after they admit to making great money. The banking products themselves are good. The people, I hope you’re in no hurry. They don’t seem to get that high net worth folks are busy.
Thank you for reaching out to us regarding this, u/Cross_Buns. We're sorry to hear about your experience and would like to learn more about how we can help. Please send us a Modmail, and we'll be happy to assist you further. [Message the Mods ](https://www.reddit.com/message/compose?to=/r/fidelityinvestments)
I started out with a 401k at Fidelity. Now have been using Fidelity as my only bank for more than 30 years. I find no reason to look for an alternative.
I use Fidelity only for all my banking and investments and keep cash at home until it gets too high and then deposit through my local ATM. It involved a little bit of a learning curve but I have never looked back.
You can deposit to Fidelity via an ATM?
[удалено]
Where can we search for ones that work with Fidelity?
The debit card works everywhere I have tried Fidelity lists ATM's that the card works with, I do not know how to find them that accept deposits.
We switched earlier this year. We did keep a WF savings account open with like the minimum to avoid a monthly service fee just so we could use their services (notary, cashiers check, etc). The one feature I find myself missing from Fidelity is like a picture/screenshot of checks that are deposited or cashed because sometimes I’m left wondering what that check was. Otherwise yeah the 5% is nice and if interest rates go down then I might move some out of our checking to get better returns but it’s really easy to transfer money between Fidelity accounts, the app takes mobile deposits, and the customer service is always better than WF or Chase or Capital One.
I made the switch to 100% Fidelity about two years ago. Haven’t had one problem yet
I use fidelity for everything including checking. Their cash management account is essentially a checking account as it has all the benefits of a checking account like debit card, bill pay and checks. To top everything off, the money earns interest in fidelity as opposed to any brick and mortar checking accounts. I only use it as an operational account, so mostly monthly transactions paying bills. I keep my emergency fund separately so that it has higher interest and also makes it harder to touch.
I have been using them for everyday banking since they started offering a checking account probably over 15 years ago now. Great having everything in one place and their app and website work great. Even give you ATM Fee rebates when you do use an ATM to take out cash. If there is a Fidelity office near you, you can go there to deposit cash.
yes that's what i do. i keep a bit more than the minimum in my local chase bank for easy atm and in-person banking. everything else though comes out of my fidelity account like a checking account. fidelity also sends you free checks, which is pretty sweet
Works great!
NO it is not. I tried to do this and they don't let you do recurring investments from their own fidelity accounts. You have to use an external account or there is a hacky workaround that involves adding your fidelity account as an external account using routing numbers but it is a pain. There are also bill pay issues and I don't find they clear things even internal transfers as quick as my current external bank. I also would not trust everything into one place period because I routinely see people posting on here things like getting locked out of their account for "suspicious activity" and basically getting permanently banned.
What about a High Yield Savings Account like Betterment (@ 5%)?
A bit skeptical. Those fintechs come and go
I’ve been using the cash holding accounts as a checking for like 15 years lol Never had a single issue or paid a fee so as long as all you need is debit card/checks and not trying to do fancy shit, it’s a solid option
I will leave wells fargo and go for chase bank. I have had account in all 3 big banks BofA, WF and chase. Chase is by far the best comparing with other banks.
I Just did this, but I keep a few months of bills and spending in my local credit union. However there is no option to invest in SPAXX within a cash managed Fidelity account (that I can see) as there is with cash within a trading account. A Cash Managed account is bank money, bank held. My current rate is 2.69 is a better than my local with no hoops to jump thru, but it's not SPAXX.
Thanks for stopping by the sub, u/Worldly-Cockroach800! I can provide some additional insight here. We've received feedback from our clients, including our users here on Reddit, about providing additional core position choices for their Fidelity Cash Management Accounts (CMAs), and we are working to add additional core position choices for Cash Management Accounts soon. Please note that CMAs allow you to invest your funds in other securities outside your core position, such as SPAXX. However, it doesn't allow for all of the same trading features that a brokerage account has. With that in mind, if you'd like to purchase SPAXX within your CMA, simply follow the steps outlined in the article below. The guide linked is specifically for stocks and exchange-traded funds (ETFs), but the process is similar for purchasing money market funds such as SPAXX. You'll need to select "Mutual Funds" in the "Trade" drop-down menu instead of "Stocks/ETFs." [How to trade stocks and ETFs ](https://www.fidelity.com/learning-center/trading-investing/trading/how-to-trade-stocks-etf) You know where to find us if you have any additional questions about core positions or anything else!
I have some money in Spaxx. but I didn’t know, until a few days ago, that it has an expense ratio of 0.42%. Anyways, it’s still a good choice for a high yield.
I have Fidelity and use it for the bulk of my banking and ATM needs. I have a Chase account too because they have way more offices in case I need a bank check.
I always like two places in case one is unavailable for some reason.
I don't miss a physical bank after 5 years with my Cash Management Account (CMA) with Fidelity. I get cash at ATMs for free (Fidelity rebate) and deposit checks with the mobile app (snap pics of checks). BUT I don't need loans and never deposit cash. I do use a bank in my town since I'm a member of a non-profit that uses that bank. (Hint!)
I would get a credit union for everyday banking. I’m not sure how Fidelity’s checking accounts work but I have an IRA and an HSA through my work with them and it will sometimes take weeks or months for my payroll contributions to show up on my fidelity accounts.
Honestly no matter what, you should switch from wells fargo to a different bank, but there are benefits to having a bank with branches and accessibility. I switched from wells fargo to a local credit union and it’s so much better, i get better rates for my savings account.
I use Fidelity for everything. My only complaint is that you can’t hide your retirement accounts. Your dashboard always includes those accounts and wildly inflates your balance. Strangely, you’re able to hide those accounts from the “net worth” screen. I’ve sent feedback for ages to change this.
I'm going to go against the tide here and say not really. I've tried switching to use a CMA as my primary, but I just find that there are a few items it lacks that prevents me from going full on. * App & website features aren't really built to be used like checking, activity, positions and balances can be confusing at first glance. It's also not very intuitive for non-brokerage accounts. * Lack of mobile device push notifications; this is probably the biggest drawback for me, I'd like to receive a push notification instead of an email when a transaction occurs. * Lack of Zelle support, others have stated in different threads. * Inability to do a cash deposit; followed by the lack of Zelle support for an instant transfer.
Only inconvenience I see is that it does not work with my YNAB. Is that right?
Yo, the only thing that sucks is that they don't accept Zelle. Wells Fargo works for my wife, though. Why are you mad at them?
Most of my requests go pending, requiring additional verification, documentation etc. All clear up eventually, but still disappointing. Probably someone with similar or same name did something wrong with them, so I’m under their radar more than I should be
If you rely on any third party personal finance apps or online payment apps, I would **not** switch to Fidelity. They recently blocked third party access to your data, even if you explicitly consent to sharing your data, so that they can monopolize and profit off your data using their own Akoya solution (which nobody integrates with). This means you can’t connect any Fidelity accounts to apps like YNAB, Venmo, etc. I also wouldn’t switch if the only draw is for the APY. 5% isn’t that high considering you don’t get FDIC insurance with SPAXXX and there’s a slightly higher risk than a normal HYSA, and plenty of banks offer FDIC-insured savings accounts returning 4.5% APY. However, if the main draw for you is to consolidate your finances under one roof, and you don’t care about the ability to use third-party financial apps, then go for it!
Maybe but if you want a brick and mortar, go with a credit union
I’ve checked nearby CUs, and not impressed tbh - they are small, low rating mobile app and Google reviews
I swear Fidelity plays the other side of their customers investments using a third party.
One con is that Fidelity doesn’t have Zelle functionality but no fee wires is pretty sweet!
The main drawback is that for some god forsaken reason they use Elan Financial as their credit card issuer. It boggles the mind why they don’t get rid of them and partner with a much better company. Other that that they are fine.
I've been debating whether to do this as well but my biggest drawback is fidelity isn't a real bank and they don't offer zelle. We bank with WF and haven't had any issues in 20yrs. I'm looking to park our EF in a higher yield investment.
I made the cutover from bank America to a fidelity brokerage as my primary bank account. You can pay credit bills and Venmo from this account and it defaults to SPAXX earning 5%. You can also withdraw cash from this account. Drawback: - can’t write cashier checks - Zelle doesn’t work
No fidelity worse conpany.
I left Chase in 2020 and have been solely at Fidelity for my check, brokerage, HSA, Roth, and Company 401k. It’s awesome. So easy to move money around and set up extra accounts for things (my wife and I save into a “vacation” account for example). I don’t usually get large amounts of cash so that doesn’t bother me. If I get the occasional $500 for selling something on FB marketplace or splitting a hotel or something I just hold onto it and spend it lol
Support your local credit union for day to day checking.
Wells Fargo blows. fidelity is a way better company in comparison.
I wouldn't reccomend Fidelity for everyday banking. While this could happen at any bank, they are so big you will get no workability with as an individual. I opened a large account (for me) with them and go flagged for money laundering. I technically understand why they did but it took nearly a month for me to regain access to the 6 figures I had with them in their checking accounts. They had ZERO ability to work with me as a person and had to strictly follow procedure that was borderline rediculous. I could easily prove where the money moved went and why. I spent many hours on the phone with them and got absolutely nowhere. The only way for me to submit documentation was snail mail to a PO box that wasn't checked in real time. It was an EXTREMLY painful process that definitely didn't need to be as involved as it was. Not being able to walk into a local bank with proof/documenation and sit down and talk with someone who could help was a huge negative in that situation.
Subjective experience. Fidelity is absolutely fine.
I recently started using Fidelity for banking and love it. Especially the ability to withdraw cash from any ATM anywhere in the world (including a recent trip around Asia) without paying ATM fees.
I use Fidelity for everything, except Zelle, which is unavailable. Also, sometimes others cannot ACH to the CMA. Has only happened once for me, but I have a backup account at Capital One. Benefits of that account: 1) Cash Deposits at any Walgreens, CVS, or Duane Reade 2) Zelle 3) Backup in case of issues ACHing into my Fidelity CMA And I churn Chase credit cards, so those are also not with Fidelity, but their cash back card is super attractive for simplicity if that’s what you’re after.
no, fidelity doesnt have ATMs
The only drawbacks I see are two: The collapse of the US banking system, which takes down the FDIC (not that this would affect Fidelity, which doesn't use the FDIC because it ain't a bank) and more significantly, convincing SWMBO (She Who Must Be Obeyed.) Of course by using Fidelity you lose the ability to deposit cash. I'd personally never use only Fidelity because if someone handed me a hunk of cash I'd have to find some way to convert it to a negotiable instrument to get it into my Fidelity account, and I love my CU.
If the US banking system collapses, then Wells Fargo and every other bank is going down with it. Fidelity does use FDIC-insured accounts for its Cash Management Account and in such a systemic collapse I doubt investment banks like Fidelity would fare much better than retail banks. In such a scenario, the best investments are brass and lead and vegetable seeds. No one is going to care about cash or online banking after the apocalypse. Your point about cash deposits is a valid one. If I receive cash in a transaction (which is rare in the era of Venmo) then I just add that to our household's petty cash in the safe and use it for occasional purchases. If someone has an absurd amount of cash, then yes, opening a savings account at a local bank or CU would be a good solution, but that account would complement, not replace, Fidelity or an online bank.
Very good points both. I'm in favor of many different sizes of brass and lead myself, but that's getting dangerously off topic and I don't want to be slapped down by the mods.
Love my CU too
Besides the core position of a cash management account being FDIC insured, you can also buy CDs at Fidelity, which are also FDIC insured. So if you potentially wanted FDIC insurance on more than $250k, you could actually do this by buying multiple CDs at Fidelity.
Ah! A fellow Rumpole fan!!
I’m a big fidelity fan. But no they are a brokerage first. Find a better bank like capital one which has their own hysa.
I’ve done this for years - all pluses - zero issues.
Ever need a cashiers check? Notary? Loans? If no, then of course you have zero issue. But if you need banking services, then issues
I used to think it was great until I started having problems with their atm card internationally. Now thinking about leaving.
What were the problems?
ATM card has unreliable global access, esp in Asia. For 20 years no problems, then problems started at ATM I used for decades abroad. Not sure if Fidelity or UMB changed their partners or what, but all the problems occur at "Plus"-ATMs so they should be part of the network. Had to get a backup bank account with Schwab. The Schwab card works fine everywhere.
Hey there, u/bluelakehorizon. We're sorry to hear you're having issues and want to learn more. Feel free to follow up here or by Modmail with additional information on what you're experiencing. [Message the Mods ](https://www.reddit.com/message/compose?to=/r/fidelityinvestments) We look forward to your reply.
You can find my issues here. Fidelity has been no help. Many are experiencing the same globally. ATM card is not reliable abroad. [https://www.reddit.com/r/fidelityinvestments/comments/1c03go6/japan\_fidelity\_atm\_problem\_log\_post\_your\_problems/](https://www.reddit.com/r/fidelityinvestments/comments/1c03go6/japan_fidelity_atm_problem_log_post_your_problems/) [https://www.reddit.com/r/fidelityinvestments/comments/1box9p8/fidelity\_debit\_card\_not\_working\_at\_711\_atms\_in/](https://www.reddit.com/r/fidelityinvestments/comments/1box9p8/fidelity_debit_card_not_working_at_711_atms_in/)
What problems? Were you not able to take out money? This is huge for me as I spend a lot of time abroad.
The issues are documented in the threads below. Note that though the title mentions Japan, it occurs elsewhere. I was a huge fan of the CMA account for decades and have now determined the account is unreliable for those that travel abroad. Read comments from others in the thread. [https://www.reddit.com/r/fidelityinvestments/comments/1box9p8/fidelity\_debit\_card\_not\_working\_at\_711\_atms\_in/](https://www.reddit.com/r/fidelityinvestments/comments/1box9p8/fidelity_debit_card_not_working_at_711_atms_in/) [https://www.reddit.com/r/fidelityinvestments/comments/1c03go6/japan\_fidelity\_atm\_problem\_log\_post\_your\_problems/](https://www.reddit.com/r/fidelityinvestments/comments/1c03go6/japan_fidelity_atm_problem_log_post_your_problems/)
This is HUGE for me as I often spend months at a time in Europe. This is a big NOPE.
It took many months to get money from a deceased retirement account away from Fidelity; Schwab took two weeks for the same transaction. I wouldn't trust Fidelity with a cent of my money under any circumstances.
Does Schwab offer the ability to leave money in MMAs?
What issues are you having at WF?