Banking & Investments - One Stop Shop

[rk911]

How do you like Chase banking?

We currently are all in at Fidelity, but we do have Chase credit cards which we'll have for a few more years. Just trying to figure out if I want to go back to a B&M local bank for any local banking needs that Fidelity can't deliver.

we do virtually all of our banking with PNC (although the ticked me off big time last week so that may change). we have consumer accounts with Chase cause we have our investment accounts under mgmt there. we're basically just parking money there as well as at Ally.

 

[MandM]

I never considered that an investment company like Fidelity could take the place of a major bank, until I read the many responses here of people doing all their banking this way. I have a Roth IRA, traditional IRA, brokerage account, and HSA at Fidelity and a physical branch 5 miles away. One feature I really enjoy from my major bank is their mobile app where I can deposit a physical check electronically by using my cell phone’s camera. Does anyone know if Fidelity offers this service?

Yes I have deposited checks via mobile app camera with Fidelity to my brokerage cash mgmt account. Extremely convenient.

 

[tulak]

I use a Fidelity brokerage account for cash management and it works the same as a bank. The only difference is that it’s not FDIC insured, but this isn’t something I worry about. My cash balance is never that high and I’m skeptical the MM fund used for cash sweeps will ever break the buck.

 

[COcheesehead]

I use a Fidelity brokerage account for cash management and it works the same as a bank. The only difference is that it’s not FDIC insured, but this isn’t something I worry about. My cash balance is never that high and I’m skeptical the MM fund used for cash sweeps will ever break the buck.

Fidelity has two types of cash management accounts. There are brokerage accounts with cash management services and your cash is deposited into a money market. They also offer a true cash management account where your cash is deposited into an FDIC insured account. I have both types at Fidelity. They have separate checking and debit cards so you can keep cash you use for everyday stuff separate from investment cash. It’s also a nice safeguard if someone gets your checking or debit number.

 

[Aerides]

After we retired we moved both our 401k's to Fido, along with most of our taxable investments.

I have a few things in VG, a small play account on Etrade, and CD's at Ally. But overall 90% of our stuff is at Fido.

Fido also has a "full view" integration that allows you to track all of them in one place, from banks to investments, so that's nice.

 

[ERObjd]

USAA for all banking, checking, savings and insurance , truck car, house, and since only investments we have are taxable we have mutual funds Fidelity (fzrox)and (fzipx) and Vanguard we have 2 funds (Star fund and Wellesley) about as simple as we can make it. though as soon as Star fund fund hits 3k we are converting it to Wellington. star fund was our first Vanguard fund because you only need $1,000 to establish it, most other Vandguard funds require $3K minimum. Our Fidelity funds are all zero minimum to open, we started both of them with $50 which was nice.

 

[jazz4cash]

I only used Fido mobil check deposit a time or two. Seems to be comparable to mobil check deposits at the bank or CU. I have several accounts at Fido but I really like BofA billpay even though I won’t use them for anything else. I only opened the Fido Cash Management Account because of a bonus that a member here suggested. Then I realized I could buy treasuries in the CMA which I’m holding to pay some scheduled major expenses. Since I use the Fido 2% Visa for almost everything i hardly ever go to an ATM but I’m sure Fido has a solution for that too. So I am drifting deeper into Fido’s grip.

 

[Car-Guy]

Down to 3 financial institutions from ~10 when I retired... (Consolidated IRA's in one, 401k in another and general banking in a local brick and mortar.) Much easier to manage and I don't feel like I'm giving up anything by consolidating except "complexity".

 

[wrigley]

Banking: NFCU. Shared checking and savings for 39 years.
Brokerage and my 401k: Fidelity
Her 401k: TSP

Mike

 

[tulak]

Fidelity has two types of cash management accounts. There are brokerage accounts with cash management services and your cash is deposited into a money market. They also offer a true cash management account where your cash is deposited into an FDIC insured account. I have both types at Fidelity. They have separate checking and debit cards so you can keep cash you use for everyday stuff separate from investment cash. It’s also a nice safeguard if someone gets your checking or debit number.

I’m aware of the difference. I preferred sticking with a brokerage account for the MM fund.

I don’t keep any investments in this brokerage account. I only use it for cash management. I have another brokerage account that I use for investing, so no risk from bad players.

 

[Happyras]

I only used Fido mobil check deposit a time or two. Seems to be comparable to mobil check deposits at the bank or CU. I have several accounts at Fido but I really like BofA billpay even though I won’t use them for anything else. I only opened the Fido Cash Management Account because of a bonus that a member here suggested. Then I realized I could buy treasuries in the CMA which I’m holding to pay some scheduled major expenses. Since I use the Fido 2% Visa for almost everything i hardly ever go to an ATM but I’m sure Fido has a solution for that too. So I am drifting deeper into Fido’s grip.

Well, for one, the check deposit feature at Fido is superior to many of our other banks. Others have deposit limits and hold back the funds for days. Fido is awesome for large deposits remote! Fido bill pay is excellent, it is now our only go to for such payments. The Fidelity 2% cash back is #2 card, back of Costco which gives us 4% on fuel and 3% on travel/restaurants etc. Buying gov issues not a problem at auction or secondary.

The topper is website tools. Both Schwab and Fido have local offices, but after a year of splitting our accounts between Schwab and Fido, Fido wins on website and office services. I just spoke with a Fido guy today who set me up with a $3500 cash bonus to transfer from Schwab to our Fido accounts. Nice

 

[Happyras]

Oh, forgot to rave about the wire transfer services over the phone that Fido provides for free. The Full View feature is not that good, but we use Personal Capital for viewing all of our accounts, and its free to use. Also, the debit card works world wide, no fee for ATM, they rebate it back immediately if charged by a foreign ATM.

 

[scrabbler1]

I have no interest in a one stop shop. I use the financial institution that is most beneficial for each service.

Same here. One local bank and 2 brokerage companies, each offering something the other 2 lack.

 

[gt5059b]

CMA? Can you write checks and bill pay through Fidelity?

CMA is Fidelity's Cash Managmeent Account. Yes you can write checks and do billpay with it. Also, if you get an atm/debit card; it reimburses all atm fees.

I consolidated all my accounts at Fidelity several years ago and very happy with it. This includes checking (direct deposit, billpay, atm), primary credit card, hsa, roth ira, rollover ira and taxable account.

Fyi since interest rates are on the rise again another Fidelity feature becomes more useful. Fidelity treats its own money market funds as cash. What that means is you don't need to sell it beforehand for it to be used.

An example, I generally keep 5k in my CMA account to cover monthly expenses. When interest rates were higher, I would keep all of that 5k in a Fido MM like FDRXX. When a debit hits the account (billpay or atm etc), Fidelity will automatically liquidate enough of FDRXX to cover the transaction.

At other places, you'd have to first sell the money market fund and wouldn't be able to use that money till the following day.

 

[Happyras]

Fyi since interest rates are on the rise again another Fidelity feature becomes more useful. Fidelity treats its own money market funds as cash. What that means is you don't need to sell it beforehand for it to be used.

An example, I generally keep 5k in my CMA account to cover monthly expenses. When interest rates were higher, I would keep all of that 5k in a Fido MM like FDRXX. When a debit hits the account (billpay or atm etc), Fidelity will automatically liquidate enough of FDRXX to cover the transaction.

At other places, you'd have to first sell the money market fund and wouldn't be able to use that money till the following day.

Our account is set up different or they make it difficult. The Core position receives and disperses funds, it is a FDIC account. The MM fund we started with is FDZXX and it can be swept for cash, but not the other way around. I have to do a trade to buy back into FDZXX.

I called the Fido rep and he clarified that cash management accounts can only use the FDIC Core position. Other types of accounts can use SPAXX or FDRXX as the core position. So it is likely that your account is not a CMA, but is set up as a brokerage account with checking?

 

[gt5059b]

Our account is set up different or they make it difficult. The Core position receives and disperses funds, it is a FDIC account. The MM fund we started with is FDZXX and it can be swept for cash, but not the other way around. I have to do a trade to buy back into FDZXX.

I called the Fido rep and he clarified that cash management accounts can only use the FDIC Core position. Other types of accounts can use SPAXX or FDRXX as the core position. So it is likely that your account is not a CMA, but is set up as a brokerage account with checking?

I definitely have a CMA and my core position is also "FDIC-INSURED DEPOSIT SWEEP" that I can't change. What you do is just purchase whichever Fidelity money market you prefer. I believe debits will deduct from the core position first, so you'd have to make it zero or at least less than your transaction if you want to test it. This also works in other account types too not just CMA.

 

[tulak]

This is why I use a brokerage account instead of a CMA. The cash balance is always in an MM fund.

When I looked at this years ago, besides FDIC insurance, I couldn’t find any difference in functionality between a brokerage account and cash management account.

 

[jazz4cash]

Fidelity has two types of Cash Management Accounts a and I’d have to dig deeper to understand the difference. I’ve only had the CMA a short while and have not explored the features very much.

 

[gt5059b]

This is why I use a brokerage account instead of a CMA. The cash balance is always in an MM fund.

When I looked at this years ago, besides FDIC insurance, I couldn’t find any difference in functionality between a brokerage account and cash management account.

The only thing I'm aware that is unique to CMA now is the "Cash Manager tool" which lets you setup overdraft protection/alerts and minimum/maximum balance target alerts.

Also, I keep it so that my CMA account is the only one out of my 7 accounts that is enabled for any external activity (billpay, checks, atm, electronic transfer).

 

[rodi]

I see that someone mentioned the issue of cash for Schwab checking. This is why my son has kept his credit union account. He deposits his paychecks in Schwab... But they won't take his tip money (cash)... so he lets it build up to a few hundred, then deposits it as the credit union. If he needs to he can transfer between the accounts since he linked them.

That's the only downside that I can find with Schwab.... they don't take cash deposits or cash checks for cash. (ATMs work for getting cash).

I assume Fidelity has a similar issue in their brick and mortar branches.

 

[mathjak107]

How do you like Chase banking?

We currently are all in at Fidelity, but we do have Chase credit cards which we'll have for a few more years. Just trying to figure out if I want to go back to a B&M local bank for any local banking needs that Fidelity can't deliver.

We use fidelity 90% for investing and bill paying .

We use chase for about 10% investing and as a cash core just for credit card payment since we charge all we can .

I let chase baby sit the etfs I pulled from vanguard and we got private client status.

We do keep a fair amount of cash at chase since one of my portfolios uses cash instruments and long term treasuries to form a barbell

 

[gooddog]

We consolidated everything at Schwab and all equity into one fund. Very liberating.

Ditto. Everything went to Schwab for us. Have a lot of accounts, but at least they are all in one place.

 

[COcheesehead]

Fidelity has two types of Cash Management Accounts a and I’d have to dig deeper to understand the difference. I’ve only had the CMA a short while and have not explored the features very much.

The difference is one is a brokerage account with cash management features like check writing, Billpay, debit card, etc. Cash is held in a money market.
The other CMA is separate from your other brokerage accounts and has all the same cash management features, but cash is held in an FDIC insured account. I have both only because Fido offered a $100 bonus for new accounts and a traditional CMA was eligible for the bonus. You can buy and sell investments in either.

 

[leftyfrizzell1963]

A few years ago, I consolidated everything down to 1 bank and 1 investment company. Makes everything more simpler. Need Quicken less.

I'm one step away from moving my checking to the investment firm to bring absolute total to 1, but I want to keep the safe box and keep some local relationship...for what? I don't know.

 

[COcheesehead]

A few years ago, I consolidated everything down to 1 bank and 1 investment company. Makes everything more simpler. Need Quicken less.

I'm one step away from moving my checking to the investment firm to bring absolute total to 1, but I want to keep the safe box and keep some local relationship...for what? I don't know.

Consolidation is very powerful. We discovered this a while back.