Fidelity recurring payment to a person's bank account.

[CRLLS]

You may recall a while back where I created my own education fund for my grandkids Using a Roth for a DIY 529(ish) Plan

The 1st one is on her way to her first dorm room. I want to send a small monthly stipend from my Fidelity TOD account directly to my granddaughter's bank account. This is intended for pizza/entertainment money at university. I have tried to set up a recurring Fido Bill-Pay but that doesn't ask for a bank routing or account number. I looked at setting up a Bank Wire transfer, but it seems to not have a recurring payment capability. I am a bit hesitant on setting up a recurring EFT and linking. They are bidirectional where potentially her bank could take from my Fido account. Fido requires some forms to fill out with a medallion signature etc....

Is there some other way to get her a monthly stipend without sending her physical checks monthly and incurring fees along the way? FWIW, I have checked and both EFT and bank wires are free from my Fido and to her bank.

 

[njhowie]

I do not see a direct way of doing it if it is the case that if you set it up with EFT from Fidelity it is bidirectional, and of course you don't want that. I would not have expected that, but if you have investigated and that's what they are telling you, so be it.

I believe you could do it in a roundabout fashion if you did want it to be fully automated. It would be dependent on both you and granddaughter's banks being on Zelle.

1. Set up recurring transfer from the Fidelity Roth to your own bank
2. Set up recurring transfer over Zelle from your bank account to granddaughter's bank account

 

[MichaelB]

From my Fidelity account I

I believe you could do it in a roundabout fashion if you did want it to be fully automated automated. It would be dependent on both you and granddaughter's banks being on Zelle.

1. Set up recurring transfer from the Fidelity Roth to your own bank
2. Set up recurring transfer over Zelle from your bank account to granddaughter's bank account

This is what I do.

 

[audreyh1]

I’ve set up “standing orders” at Fidelity for one way transfers via EFT to siblings bank accounts. I don’t have these set up as recurring, they are used occasionally for gifts. These are not bidirectional. We had to fill out the appropriate paperwork and get Medallion signature at a Fidelity office and submit them to Fidelity.

Talk to a Fidelity rep?

 

[jazz4cash]

I have recurring transfers setup at Fido. I leave Money Transfer Lockdown enabled so outside banks cannot pull from Fido. MTL does not affect recurring transfers. When I need a one time transfer MTL can be disabled instantly via web or app and reenabled after setting up the xfer. Fido sends a text to notify MTL status change. MTL is in the security settings menu. You can choose which accounts to lockdown.

 

[joesxm3]

When I was trying to set up EFT to a linked bank account there was a question asking if this was your bank account. When I answered no, I could only send money to but could not pull from.

I never got to the point of knowing but I would hope that sending to someone's bank account would stop them from pulling from your fidelity as well as stop you from pulling from their account. You should call and ask.

 

[QG67PK00]

You may recall a while back where I created my own education fund for my grandkids Using a Roth for a DIY 529(ish) Plan

The 1st one is on her way to her first dorm room. I want to send a small monthly stipend from my Fidelity TOD account directly to my granddaughter's bank account. This is intended for pizza/entertainment money at university. I have tried to set up a recurring Fido Bill-Pay but that doesn't ask for a bank routing or account number. I looked at setting up a Bank Wire transfer, but it seems to not have a recurring payment capability. I am a bit hesitant on setting up a recurring EFT and linking. They are bidirectional where potentially her bank could take from my Fido account. Fido requires some forms to fill out with a medallion signature etc....

Is there some other way to get her a monthly stipend without sending her physical checks monthly and incurring fees along the way? FWIW, I have checked and both EFT and bank wires are free from my Fido and to her bank.

You can open a new Cash Management account (CMA) at fidelity, set up recurring transfer from your TOD to the new CMA and then set up recurring ACH transfers from the CMA to your granddaughter's account.

 

[CRLLS]

I may be wrong on the bidirectional. My thought is, and I should check with Fido on this, that once an external bank account is "linked" in Fido, there is a link on both ends. The Zelle idea is possibly the way to go. I've never Zelle'd. I know my brick and mortar bank offers it.

 

[audreyh1]

I may be wrong on the bidirectional. My thought is, and I should check with Fido on this, that once an external bank account is "linked" in Fido, there is a link on both ends. The Zelle idea is possibly the way to go. I've never Zelle'd. I know my brick and mortar bank offers it.

It doesn't work that way unless you are on the linked account. For my sibling's linked accounts I can only transfer to, not from. There is not a link at both ends.

However, we did have to get a medallion signature to set this up. A Fidelity office can supply this type of signature which is what we ended up doing.

 

[jazz4cash]

pI may be wrong on the bidirectional. My thought is, and I should check with Fido on this, that once an external bank account is "linked" in Fido, there is a link on both ends. The Zelle idea is possibly the way to go. I've never Zelle'd. I know my brick and mortar bank offers it.

Pretty sure there is no automatic bidirectional link even if Fidelity sends routing and account numbers. I don’t believe you could pull funds from an account with a different name.

 

[CRLLS]

I just tried sending her via my bank's Zelle. It worked. However........ she cannot receive it as she is not yet 18 and cannot be part of Zelle. As a result, I sent her mom the money via Zelle. She can transfer the $$ to her daughter's account. In less than 2 months, granddaughter will be 18 and can receive it direct, via Zelle. My bank has the capability to schedule recurring payments so this will work for me.

As a side benefit, I can now take the $ from my bank and keep the investments at Fido to grow.

Thanks for the suggestion of Zelle.