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Fidelity Account with no $$
Old 01-31-2023, 09:15 AM   #1
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Fidelity Account with no $$

Our IRA's are at Vanguard, and I have little to no desire to move them.

However, when DH's megacorp 401(k) was with Fidelity, I did enjoy their tools.

I have heard you can have a Fidelity account with no money there. Could I just set up a cash management account and never fund it?

On that note, does anyone have insight on their cash management account? Wondering how it compares to Ally's savings account. When I make our annual IRA withdrawal, I have the money deposited at Ally and have an auto payment made to our checking account, sort of like a paycheck.

Thanks in advance for the collective wisdom.
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Old 01-31-2023, 09:22 AM   #2
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... I have heard you can have a Fidelity account with no money there. Could I just set up a cash management account and never fund it? ...
Why don't you ask them?
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Old 01-31-2023, 09:26 AM   #3
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Vanguard doesnít have CMAs? Iíve heard their MM rates are the best.
The Fidelity CMA is a good substitute for Ally Savings to hold annual spending IMO. You can hold treasuries, bonds, etc there as well. I havenít used the billpay but transfers to my primary checking are good.
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Old 01-31-2023, 09:29 AM   #4
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Originally Posted by SumDay View Post
Our IRA's are at Vanguard, and I have little to no desire to move them.

However, when DH's megacorp 401(k) was with Fidelity, I did enjoy their tools.

I have heard you can have a Fidelity account with no money there. Could I just set up a cash management account and never fund it?

On that note, does anyone have insight on their cash management account? Wondering how it compares to Ally's savings account. When I make our annual IRA withdrawal, I have the money deposited at Ally and have an auto payment made to our checking account, sort of like a paycheck.

Thanks in advance for the collective wisdom.
Why wouldnít you use that account? You can move any deposit into a money market fund that is yielding much higher than Ally at the moment, and set up monthly transfers from there. Fidelity will automatically pull from the MM fund to meet your transfers.

Or simply open a regular brokerage account that does the same. The advantage of a regular brokerage account is that the money market fund can be your core account.

What are you using the tools for? For trades somewhere else?
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Old 01-31-2023, 09:33 AM   #5
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What are you using the tools for? For trades somewhere else?
Their RMD tool first comes to mind...
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Old 01-31-2023, 09:34 AM   #6
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Their RMD tool first comes to mind...
I think you can have a guest account at Fidelity, at least for a while.
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Old 01-31-2023, 09:55 AM   #7
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I opened a unfunded brokerage account with Fidelity because I needed to help a friend with her investments and she needed help just to navigate the site. I also have my 401K there so I'm not brand new to Fidelity if that make any difference.
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Old 01-31-2023, 11:27 AM   #8
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Why don't you just open up an account with $50 and they give you $100 and then let it sit there earning a tiny bit of interest until you're ready to use it. Once you get the bonus money you can pull your $50 out again.

https://www.fidelity.com/go/starter-pack
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Old 01-31-2023, 01:06 PM   #9
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There’s no charge to open an account at Fidelity. Note Fidelity will close it after a few years with no activity.

The free $100 offer is a good deal - linked in the post above. The offer allows you to open any type of Fidelity account. FYI the cash management account is currently paying 2.20% APY
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Old 01-31-2023, 01:19 PM   #10
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Thanks all for the info & ideas. Just opened the Fidelity account, and added my Ally account to get the money transferred.
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Old 01-31-2023, 02:46 PM   #11
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Thereís no charge to open an account at Fidelity. Note Fidelity will close it after a few years with no activity.

The free $100 offer is a good deal - linked in the post above. The offer allows you to open any type of Fidelity account. FYI the cash management account is currently paying 2.20% APY
And you can move your cash to Fidelity Govt Cash Reserves within the CMA and get 3.95%+.
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Old 01-31-2023, 03:09 PM   #12
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And you can move your cash to Fidelity Govt Cash Reserves within the CMA and get 3.95%+.
Yes +1. Just checked my CMA it confirms the MM fund is SPAXX - FIDELITY GOVERNMENT MONEY MARKET with 7 day yield of 3.95%.
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Old 01-31-2023, 03:12 PM   #13
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Yes +1. Just checked my CMA it confirms the MM fund is SPAXX - FIDELITY GOVERNMENT MONEY MARKET with 7 day yield of 3.95%.
I generally use FDRXX. They are very close.
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Fidelity Account with no $$
Old 01-31-2023, 04:31 PM   #14
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Fidelity Account with no $$

Quote:
Originally Posted by SumDay View Post
Thanks all for the info & ideas. Just opened the Fidelity account, and added my Ally account to get the money transferred.


FWIW, you can also get the Fidelity 2% Visa Credit card. Every so often they pay you the cash back you earned by transferring the money to your Fidelity money market fund.

My Fidelity 2% Visa is my go to card for most transactions. YMMV.
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Old 02-01-2023, 12:54 PM   #15
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Yes +1. Just checked my CMA it confirms the MM fund is SPAXX - FIDELITY GOVERNMENT MONEY MARKET with 7 day yield of 3.95%.
Check out SPRXX (Fidelity MM Fund). No minimum amount required. Better yield than SPAXX.
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Old 02-01-2023, 12:54 PM   #16
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I generally use FDRXX. They are very close.
$100K minimum investment
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Old 02-01-2023, 03:13 PM   #17
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I generally use FDRXX. They are very close.
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$100K minimum investment
The $100K initial minimum MM fund is FZDXX.

FDRXX has no minimum and is available as a core MM fund in many Fidelity accounts.

Yeah, all those symbols are close.
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Old 02-01-2023, 03:42 PM   #18
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The $100K initial minimum MM fund is FZDXX.

FDRXX has no minimum and is available as a core MM fund in many Fidelity accounts.

Yeah, all those symbols are close.
Sorry.
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Old 02-02-2023, 07:03 AM   #19
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So, this thread got me thinking ...

Given the various MMFs at Fido, which is "best" and why? ie SPAXX yields 3.96% and FDRXX yields 3.99%, SPRXX 4.17%, and FZDXX 4.29%.

Gotta be more than yield, right?
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Old 02-02-2023, 07:37 AM   #20
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So, this thread got me thinking ...

Given the various MMFs at Fido, which is "best" and why? ie SPAXX yields 3.96% and FDRXX yields 3.99%, SPRXX 4.17%, and FZDXX 4.29%.

Gotta be more than yield, right?
SPRXX and FXDXX are prime money markets funds invest in riskier money markets including corporate whereas SPAXX and FDRXX invest in US government money markets only. The absolute risk difference is tiny unless something like 2008 happens. The prime funds have some tougher rules about withdrawing money during a crisis and can float.

Notice that Fidelity only allows the government money market funds or FDIC insured banks (or muni MM) for the core position. That’s why.
https://www.fidelity.com/mutual-fund...B&gclsrc=aw.ds
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