Fidelity Cash Management Account??

[catotx]

Quote:

Originally Posted by FANOFJESUS Right now in brokerage I have SPAXX as the core. I bought some SPRXX. How do I get it to pull SPRXX once SPAXX is out?

If the brokerage account behave the same as the CMA, it should pull from SPRXX automatically once SPAXX is out.

[catotx]

Quote:

Originally Posted by audreyh1 One thing worth mentioning on the Fidelity ATM Card is that I get a message the instant the card is used. So I would know immediately if unauthorized access occurred. The Schwartz debit/ATM card does not. The Fidelity VISA also gives me instant transaction notification. A couple of months ago I had a COPA Air purchase ping on my watch and called in immediately to notify Elan Fraud Dept that I had not made that purchase.

Thanks, that's good to know. I hardly use the ATM card.

[audreyh1]

Quote:

Originally Posted by catotx Thanks, that's good to know. I hardly use the ATM card.

My main use for the ATM/debit Card is overseas ATM withdrawals with no foreign transaction fee plus ATM fees reimbursed.

[rayvt]

Quote:

Originally Posted by audreyh1 My main use for the ATM/debit Card is overseas ATM withdrawals with no foreign transaction fee plus ATM fees reimbursed.

No, it says "For each foreign transaction, there is a foreign transaction fee (currently, 1 percent)"

All this is confusing, these banks tend to make it difficult to know exactly what fees there are and are not.

On a boglehead board, somebody said,
"I actually called the issuing bank for Fido's Visa debit card. They said that a foreign ATM withdrawal is NOT a foreign transaction and thus not subject to the 1% FT fee.
However, if one uses the card at a foreign merchant (i.e. making a purchase with the card), then it is a foreign transaction and the 1% FT fee will apply."

[FANOFJESUS]

Right now in brokerage I have SPAXX as the core. I bought some SPRXX. How do I get it to pull SPRXX once SPAXX is out?

Quote:

Originally Posted by catotx If the brokerage account behave the same as the CMA, it should pull from SPRXX automatically once SPAXX is out.

I just wanted to make sure before I tried it. Does anybody know for sure? Does something need to be set up in the brokerage before that will happen? Would hate to bonce checks to find out.

[audreyh1]

Quote:

Originally Posted by rayvt No, it says "For each foreign transaction, there is a foreign transaction fee (currently, 1 percent)" All this is confusing, these banks tend to make it difficult to know exactly what fees there are and are not. On a boglehead board, somebody said, "I actually called the issuing bank for Fido's Visa debit card. They said that a foreign ATM withdrawal is NOT a foreign transaction and thus not subject to the 1% FT fee. However, if one uses the card at a foreign merchant (i.e. making a purchase with the card), then it is a foreign transaction and the 1% FT fee will apply."

I have used this card for several years. I know exactly what they charged. I have verified against the VISA exchange rate.

For an ATM withdrawal, there is no foreign transaction fee. It will match the VISA exchange rate for that day with 0% fee.

I have done many foreign ATM withdrawals.

For a point-of-sale transaction (purchase) such as at a shop or at an automated ticket machine, there is a 1% foreign transaction fee built into the exchange rate.

It’s not often that I use the card in an overseas automated ticket machine, but occasionally I have needed it when credit cards weren’t accepted, and the exchange rate has cost 1% more. Fortunately it’s usually a very low dollar amount so that 1% fee is negligible.

The Fidelity documentation never spells this out.

[audreyh1]

Quote:

Originally Posted by FANOFJESUS Right now in brokerage I have SPAXX as the core. I bought some SPRXX. How do I get it to pull SPRXX once SPAXX is out? I just wanted to make sure before I tried it. Does anybody know for sure? Does something need to be set up in the brokerage before that will happen? Would hate to bonce checks to find out.

Hopefully Fidelity can answer this question? I think you should call before trying.

The “Fidelity account agreement” does seem to have similar language to the CMA agreement.

Quote:

To help ensure the proper discharge of debits, it is our policy (unless we agree to do otherwise) to turn to the following sources, in this order, when settling debits against your account: • the Intra-day Free Credit Balance • the core account • any shares of a Fidelity money market fund held in the account that maintain a stable (i.e., $1.00/share) net asset value and are not sub- ject to a liquidity fee or a similar fee or assessment • if you have a margin account, any margin credit available In addition to the foregoing, we may turn to the following sources: • any shares of a Fidelity money market fund held in another nonretirement account with the same registration (which you authorize us to sell for this purpose when you sign the application) • any securities in any other account at Fidelity in which you have an interest If you want to opt out of the foregoing, please contact Fidelity for more information. In the event that your account does not contain sufficient cash, Fidelity may liquidate securities to satisfy a court order, levy, or any removal of the position as a taxable distribution and any reinstatement of the position will not be reported as a contribution

https://www.fidelity.com/bin-public/...-agreement.pdf

[catotx]

Quote:

Originally Posted by FANOFJESUS Right now in brokerage I have SPAXX as the core. I bought some SPRXX. How do I get it to pull SPRXX once SPAXX is out? I just wanted to make sure before I tried it. Does anybody know for sure? Does something need to be set up in the brokerage before that will happen? Would hate to bonce checks to find out.

Unfortunately my experience is with the CMA and I don't have direct experience with the brokerage account. Maybe you can try with a billpay (no bouncing of checks) which will give you some confidence. Hopefully someone will come along and share the experience.

[Cobra9777]

Quote:

Originally Posted by FANOFJESUS Right now in brokerage I have SPAXX as the core. I bought some SPRXX. How do I get it to pull SPRXX once SPAXX is out? I just wanted to make sure before I tried it. Does anybody know for sure? Does something need to be set up in the brokerage before that will happen? Would hate to bonce checks to find out.

Quote:

Originally Posted by audreyh1 Hopefully Fidelity can answer this question?

WRT how debits to the account are handled, the customer service agreement for the Fidelity brokerage account is identical to what audreyh1 posted earlier (post#57) for the CMA. Nothing needs to be set up. If there's no money in the core, it automatically sells from the MMF to satisfy the debit. Same as a CMA.

Here's a link to the customer agreement document if you want to be sure. Again, hit control-f and search for "debits to your account." You'll see identical language as what's in the CMA document.

[FANOFJESUS]

Thanks everybody. I am new to Fidelity.

[foxfirev5]

Quote:

Originally Posted by Cobra9777 WRT how debits to the account are handled, the customer service agreement for the Fidelity brokerage account is identical to what audreyh1 posted earlier (post#57) for the CMA. Nothing needs to be set up. If there's no money in the core, it automatically sells from the MMF to satisfy the debit. Same as a CMA. Here's a link to the customer agreement document if you want to be sure. Again, hit control-f and search for "debits to your account." You'll see identical language as what's in the CMA document.

I use both Fido brokerage and cash mngmt. In the brokerage acct I manually transfer idle cash to SPRXX. When I purchase a T Bill it first drains my core FZFXX, then automatically uses SPRXX funds. Nothing to do in my part
I curious if I can hold SPRXX in the cash management acct as well.

[catotx]

Quote:

Originally Posted by foxfirev5 I use both Fido brokerage and cash mngmt. In the brokerage acct I manually transfer idle cash to SPRXX. When I purchase a T Bill it first drains my core FZFXX, then automatically uses SPRXX funds. Nothing to do in my part I curious if I can hold SPRXX in the cash management acct as well.

You should be able to use SPRXX by purchasing it manually. I use FZDXX in the CMA.

[foxfirev5]

Thx. I'll give a try

[audreyh1]

Quote:

Originally Posted by foxfirev5 Thx. I'll give a try

I placed an order to buy some FDRXX in my cash management account today. Never knew that was possible before!

[audreyh1]

Many thanks to all the contributors here!

I called Fidelity today just to verify the debit mechanism plus a few other details on my Fidelity Cash Management account (such as no other accounts linked to cover overdraws).

I'm moving the funds to a MM fund inside the account, and because I can do that, I am pulling a few more funds into the account from other accounts.

I notice that the Fidelity MM fund rates are moving up sharply!
https://fundresearch.fidelity.com/mu...Money%20Market

[Dtail]

Quote:

Originally Posted by audreyh1 I placed an order to buy some FDRXX in my cash management account today. Never knew that was possible before!

Can you use FZDXX in this account? Yes, the initial deposit has to be 100k, but then you can keep any balance after the initial deposit.
The yield is now over 2%.

[audreyh1]

Quote:

Originally Posted by Dtail Can you use FZDXX in this account? Yes, the initial deposit has to be 100k, but then you can keep any balance after the initial deposit. The yield is now over 2%.

Not moving an extra $100K in that account right now even if temporary. I still won’t have high $ in that account, so the 0.28% yield difference doesn’t really matter.

FDRXX is up to 1.76% which is way better than the 0.31% I was earning on the FDIC sweep.

[Huston55]

Got this message yesterday. I’m thinking ‘Good. But, why didn’t you do this before release?’

[Scottinharwood]

Relative to the first reply I would add the con that when you transfer money from pre-tax savings account to the post tax, ready to withdraw, savings account, it takes 3-5 days for the cash transfer to go through. Its an electronic funds transfer and should go through the same day or no more than by the following day. Does Vanguard have this problem?