Why does Fidelity say I have cash but won't let me buy a CD

[Bossman]

Fidelity auto-roll

I use the SPAXX mm as the core and as the CDs in my ladder mature they are automatically swept into that account. Then I rinse/repeat buy new CDs…I don’t use the auto-roll function. Like to research the health of the bank a bit. So far so good no problems.

I also preferred to search the health of the Bank before purchasing CDs, but recently stopped that practice. Spoke directly to a Fidelity fixed income specialist and I was reassured that Fidelity does a certain amount of due diligence regarding brokered CD banks and FDIC insurance is not the sole criteria. As of now, most of my CDs are set to auto-roll.


PS> On various comments regarding the "quality" of the Fidelity web-site. I have used many different bank and brokerage websites and find that Fidelity is the best. That includes both the functionality and user friendliness. This comment does not cover the "Full View" functionality as that can certainly be improved.

 

[COcheesehead]

All the CDs sold at Fidelity are insured by the FDIC.

 

[Mark1]

Just a shot in the dark, but there's only one place you can have your cash where it will be available for trade. For example it's easy to think that any money market is cash for the purpose of investable assets, but other than their default sweep money market, everything else is considered a mutual fund, so for example if you put all of your cash in a different money market that's not their default, they would consider that an investment position (vs available investable cash) so you have to cash out of that before you can buy anything else. Again a shot in the dark and I may be completely off base but I've had this happen before.

Yes, Fido does have a variety of "cash" accounts associated with my various accounts depending on the vintage of the account. For the bulk of my more recent accounts, I can move money into my Fido Smart Cash Account (basically a checking account to me) instantly. However, I do have one account that is so old it doesn't have a "cash" position, such that when I move money out of that account's money market account, I need to wait until the close of business to get the mutual fund sale price. I have never tried to buy a CD in that account, but I'm sure it would work much differently than my other accounts.

 

[Texas Proud]

Just throwing this out as a possibility....


Maybe it is timing of settlement?


A stock settles in 3 days... maybe the CD settles the same day...


That would be kiting to have an investment in a CD AND the MM account...

 

[COcheesehead]

Just throwing this out as a possibility....


Maybe it is timing of settlement?


A stock settles in 3 days... maybe the CD settles the same day...


That would be kiting to have an investment in a CD AND the MM account...

I mentioned settlement timing up thread, but unless the OP stops back we’ll never know.