You probably have to specify the funding source. Click the red "Set Up Now" button near the right bottom of mySmart Cash overview page, and proceed.

However, I got stuck with an error message "You have no eligible funding account(s)." I wonder if this means I have to have a MMF within the mySmart Cash account. I do have FSLXX but it's in the old taxable brokerage account.

Yoroku

scanchain said:1. I assume you will get new ATM cards and new checks since this is a new brokerage account?Yes. You need to re-enroll for checkwriting (including sending a physical signature card again), billpay, etc. I was hoping that they'd somehow just switch over my ATM card to the new account, but there's no suggestion of that. (With the AMEX gold card, that will now make 3 debit cards linked to the same funding source.)2. Any idea if the routing and account number on the checks are of the "correct form" that I can submit directly for direct deposits or debits? I know for the classic brokerage account, the account number used for ACH is a 17-digit number formed by certain rules as given in Fido's direct deposit page. Some financial institutions require a physical check and it is always a hassle to explain why the account number is different.It's apparently going to be the same story as with any other brokerage account (I think -- I haven't gotten my checks yet, but the account number is in the same format). However, have you tried just using the account and routing number from your checks? That always worked for me except for receiving incoming wires.

scanchain...in the faqs it actually states that you can sweep funds from your other fidelity MMF Funds to use as automatic overdraft...so, while in the past, many of us (including myself) have used this "unofficially" it it now being officially sanctioned....

craig10x said:in the faqs it actually states that you can sweep funds from your other fidelity MMF Funds to use as automatic overdraft...so, while in the past, many of us (including myself) have used this "unofficially" it it now being officially sanctioned....Fidelity says quite clearly that cash in Fidelity MMFs held in your "funding accounts" (i.e., a separate brokerage account linked via the Self Funded Overdraft feature) is available to cover debit transactions in the mySmart account. Having looked at everything on the web site over and over, I can't figure out whether a MMF held in the mySmart account itself is officially available for that purpose. So, I think you do need to maintain a separate brokerage account to be confident that that feature is official.

Here's the first bulleted paragraph in the description of the Self Funded Overdraft Protection function: "If there is inadequate cash in the mySmart Cash Account, mySmart Cash Manager Self-Funded Overdraft Protection looks for sufficient funds to cover the debit request in the first Fidelity Funding Account. Self-Funded Overdraft Protection looks for available cash, available margin loan, and non-core money market positions in your first Funding Account. If there are enough available funds to satisfy the debit request, Self Funded Overdraft Protection moves them to your mySmart Cash Account and satisfies the debit request."

As I read that, it goes to the Funding Account unless there's "cash" in your mySmart account. Cash sitting in the FDIC-insured core account is cash, but, technically, money in a MMF isn't. Therefore, if you hold a MMF in the mySmart account, by my reading, Fidelity will ignore that money and go to the linked brokerage account if necessary.

LH2004 said:Here's the first bulleted paragraph in the description of the Self Funded Overdraft Protection function: "If there is inadequate cash in the mySmart Cash Account, mySmart Cash Manager Self-Funded Overdraft Protection looks for sufficient funds to cover the debit request in the first Fidelity Funding Account. Self-Funded Overdraft Protection looks for available cash, available margin loan, and non-core money market positions in your first Funding Account. If there are enough available funds to satisfy the debit request, Self Funded Overdraft Protection moves them to your mySmart Cash Account and satisfies the debit request."

As I read that, it goes to the Funding Account unless there's "cash" in your mySmart account. Cash sitting in the FDIC-insured core account is cash, but, technically, money in a MMF isn't. Therefore, if you hold a MMF in the mySmart account, by my reading, Fidelity will ignore that money and go to the linked brokerage account if necessary.

talk about obfuscation. here's a tip fidelity: instead of creating an entirely new account, how about making an FDIC-insured account one of the core choices for the normal brokerage account? or, if that's not possible due to regulations and such, just give a few ATM rebates.

what a PITA just for FDIC and ATM rebates. damn, i hate unnecessary complexity. i think my plan will be to do absolutely nothing.

Clocks said:"how about making an FDIC-insured account one of the core choices for the normal brokerage account?"

I agree!

my $0.02 ::

FIDELITY : ...Just make the CORE account "FDRXX" instead of the silly FCASH for taxable brokerage accounts .

it has been a LONG time since a MMF has busted the dollar NAV.

Besides, i beleive in FDIC ins. as much as I beleive I will receive the promised SS payments in 15 yrs.

timetosave said:- easier management of money (compared to an investment account). By this I mean you can very easily access data like all checks, all ATM withdrawals, all fees, or all direct deposits over a specified period of time.I would say it would be pretty much identical in that regard to just using checking on a regular brokerage account. Fidelity accounts are really fairly nice to use for checking: you can see your ATM withdrawals, check images, ACH transactions, etc. in a single history. Of course, if you previously weren't actively using it that way (because of ATM fees), then that's a big improvement.I guess the only potential hassle is setting up Billpay again, getting new checks (with new account numbers), and getting a new debit card (if you already have one tied to your investment account)Yeah. Also, it's not just replacing that stuff: you probably now want all incoming money to go into the regular brokerage account, and outgoing to come out of the mySmart. Personally, I like to carry in my wallet one check from each of my accounts, either to actually use if I ever need to or to have the information to set up a link; now, I'll have to keep straight my separate account numbers for direct deposit/incoming wires/incoming transfers and for bill payment links.Did I forget anything?I'm serious about my suggestion of using a third account as a margin account to hold any actual securities you want. Margin is a powerful tool in combination with checking: if you hold $100,000 in stocks, you can write an unplanned $50,000 check on a whim, and then move money to cover it after the fact. I love having that flexibility, and just knowing that if I'm off in my math, I'll just pay interest for a day or two, not crazy overdraft fees. Formerly, you had a choice: if you went with margin, that meant you couldn't rely on non-core money market funds being liquidated to cover checks (until you reached your margin borrowing limit). Now, you can specify the funding hierarchy, so you can have a cash account, where you hold FSLXX or something, first, and your margin account second, ensuring you'll never hit margin until the money fund is empty.

scanchain said:I am about to open the account. Can anyone tell me if there is any reason at all to set the minimum target balance to anything other than $0? Thanks.

I just set it up today, and already i really like this new set-up..i feel i can finally do all my banking with my favorite brokerage that i use for investing....the only reason i didn't consider it in the past, was because i couldn't get free atm's everywhere access, now that that's been added on (as well as the Account Manager feature)...it's just what i was looking for...

I imagine many dyed-in the wool fw'ers who want to squeeze every last buck out of this, will do it the way you mentioned...have a o balance and let everything come in from their 5% Money Market Fund, but i set mine up a bit different..

I set it so that any time the balance goes down to $100 it will go back up to $800 the next day...that's about the normal balance i keep in a checking account for small bill pays, withdrawals, small checks written, small debit purchases once in a while..

However, when the debits exceed my available balance, i have the auto-overdraft also enabled to pay for anything that goes above my normal range, like when big payments are made on bill pay, or whatever...

This way, i never need to add money to the checking, manually...it's all taken care of AUTOMATICALLY...

And, between you and me, i am not going to fret over the approx $10 a year i will lose getting 3.5% apy instead of 5% apy on an average checking balance of $800

I don't see any point to having it continuously and constantly auto-overdrafting....so on my set-up, it will only do that, perhaps a few times each month

I just opened this account and think its going to be a great way to consolidate my money.

What I don't understand yet is how to set up automatic sweeps in the Money market. The "Maximum target balance amount" in the Cash Manager has a minimum of 2500 and its description says that its only an alert telling you its time to transfer money.

Anyone figured this out yet?

Otherwise the interface looks pretty good. The Account gets a special page with the useful information in big letters, Current Balance, Available balance, Interest rate and YTD atm rebates. Everything functions in a typically fidelity fashion, many powerfull tools are available although a few more clicks are usually needed to do something than a regular bank might require.

LH2004 said:asdf83 said:
If you want to use a core-available fund, the best solution is to open a separate brokerage account with that fund as the core account, and make sure that incoming money is always transferred to that account, not the mySmart account. Then set the other account as a funding account for the mySmart's overdraft protection.


Yeah I meant to ask that question as well. Thats a decent solution but unfortunatly no core account is as good as the best money market, so its still not a hands off way to keep money at the highest possible rate.