click to close
help
edit

Forums ›
Finance

New Fidelity Banking Features (ie. ATM rebates)

  • filter:
  • Email Topic
  • Text Only
  • Search this Topic »
  • switch to 'Classic' view
Welcome to FatWallet Forums! Sign up to join the conversation and earn Cash Back when you shop.
rated:
   posted: Jul. 16, 2007 @ 4:22p
alert mods    

Just finished an online Chat with a Fidelity Rep. After schmoozing with the rep a bit, I was told that they are rolling out a new service called mySmartCash, which will include more banking features than Fidelity currently offers. The details have not yet been fully disclosed (from what I was told) but will include ATM rebates and more full-service retail banking services (confirmed with rep twice). This should be available to customers within 4-6 weeks.

In my view, considering the stellar customer service offered by Fidelity, this makes full service banking with Fidelity that much more compelling (assuming you are nearby a branch for periodic paper check deposits). In my experience, Fidelity's customer service is at least as good as BofA's Premier Banking and handily trounces the several other retail banks I use (or have used). I will try to update this thread over the next few weeks as more information becomes available.

Message edited by: stook2001 on 2007-07-16 16:40:04 CDT
   posted: Jul. 16, 2007 @ 4:22p

Fidelity mySmart Cash Account

1.50% APY (FDIC insured up to $100,000 per depositor)
ALL ATM fees refunded
No minimum balance
Free checkwriting
Self-funded overdraft protection

Fidelity mySmart FAQ

Apply HERE.


Modified slightly from LH2004
LH2004 said:

1. MyCash account
. ** uses MyCash's core
2. Brokerage acct w/o margin
. ** Cash account's core
. ** Cash account's other MMF
3. Brokerage acct w/ margin
. ** Margin account's core
. ** Margin account's margin
. ** Margin account's other MMF

The above is the most versatile setup. However, feel free to drop the margin account, or bump it up and the cash account. Basically, #1 works the same regardless. Then all the overdraft connections work like #3 (if you do not have margin, it skips 3b).

Fidelity's fine print said:To help ensure the proper discharge of debits, it is our policy to turn
to the following sources, in this order, when settling debits against
your account:
• any money that is added to your account (such as checks, interest,
or transaction proceeds) on the same day the debit is applied
• any money in your account’s FDIC-Insured Cash (Core)
• any shares in a Fidelity money market fund, including any in another
non-retirement 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

$100 Bonus for opening MM fund with 10k
Text
Everyone opening the checking should look at this offer.

Comments
-Transactions appear online instantly
-Free deposit slips with pre-paid return address
-Free checks
-MM Funds inside the myCash account are blended transparently and overdraft transactions do clog history

Advantages Over Regular Brokerage
-ATM Rebates
-Deposit Slips with pre-paid return postage
-Special streamlined interface just for this account
-Can officially deposit checks written to you
-Official and configurable over drafting from any fidelity MM fund

Disdvantages
-Functional but awkward integration with Quicken

Fidelity mySmart Cash bank information:
United Missouri Bank
Kansas City, MO
Routing ABA#: 101205681
Prefix and account number: 39900000 followed by your account number (Be sure to replace the X with 5; or the Y with 6; or the Z with 7; followed by the remaining eight digits of your account number)

Fine Print:
-mySmart Cash Account Customer Agreement
-mySmart Cash Account Check Card Agreement and Disclosure Statement

Money Market Selector
Taxable-Equivalent Yields for Fixed Income Funds
https://scs.fidelity.com/misc/framesets/teytool.shtml

Link to Money Market Funds - scroll to bottom

Message edited by: irene12 on 2008-06-25 20:17:18 CDT
rated:
   posted: Jul. 16, 2007 @ 4:27p
alert mods    

It will be great when that happens. I think right now, there is a $1 fee (charged by PNC) for every ATM transaction (unless you have $500k (?) or more with Fido).

rated:
   posted: Jul. 16, 2007 @ 4:35p
alert mods    

Depending on what actually happens, featurewise, this could be extremely hot.

rated:
   posted: Jul. 16, 2007 @ 5:14p
alert mods    

I have an Income Management Account(IMA)at Fido. It looks like another Fido account online, but actually the routing number on my checks belongs to UMB bank. My checking balance is kept in FDRXX at about 5%, it uses the same billpay as the rest of Fido, there are no restrictions on checks, and they refund ATM fees. I think it's designed for retirees because it tracks SS, pensions, and income moved from other Fido accounts to checking.

I wonder if they have expanded that UMB relationship for the rest of you?

rated:
   posted: Jul. 16, 2007 @ 5:36p
alert mods    

janwad said:I have an Income Management Account(IMA)at Fido. It looks like another Fido account online, but actually the routing number on my checks belongs to UMB bank. My checking balance is kept in FDRXX at about 5%, it uses the same billpay as the rest of Fido, there are no restrictions on checks, and they refund ATM fees. I think it's designed for retirees because it tracks SS, pensions, and income moved from other Fido accounts to checking.

I wonder if they have expanded that UMB relationship for the rest of you?

Billpay and checkwriting are available on just about all Fidelity accounts (IRA, standard brokerage, etc) through UMB.

rated:
   posted: Jul. 16, 2007 @ 6:38p
alert mods    

Just to be clear, my understanding was that there would be a suite of new banking services offered. My Fidelity account does offer check writing, ATM card, etc. BUT, if I recall correctly, there are limitations on ATM and check writing transactions. Additionally, not that I am that worried about it, but the investment account money markets are not FDIC insured. The other discount brokers set this up differently in that they have affiliated true bank accounts tied to the investment account. I wonder if Fidelity is planning the same...

rated:
   posted: Jul. 16, 2007 @ 7:04p
alert mods    

i'm sorry, but could you clarify this? i'm not sure what you mean by this statement:

"they have affiliated true bank accounts tied to the investment account."

Edit: are you saying that the by having the true bank accounts tied to the investment account, that somehow the investment account is then FDIC insured?

stook2001 said:Just to be clear, my understanding was that there would be a suite of new banking services offered. My Fidelity account does offer check writing, ATM card, etc. BUT, if I recall correctly, there are limitations on ATM and check writing transactions. Additionally, not that I am that worried about it, but the investment account money markets are not FDIC insured. The other discount brokers set this up differently in that they have affiliated true bank accounts tied to the investment account. I wonder if Fidelity is planning the same...

Message edited by: mobilebuddha on 2007-07-16 19:06:08 CDT
rated:
   posted: Jul. 16, 2007 @ 7:26p
alert mods    

You are indeed right about Fidelity's peerless customer service.

rated:
   posted: Jul. 16, 2007 @ 7:42p
alert mods    

If I had to vote, I would like to see there not be a seperate need for a "bank balance" checking account and a "cash balance" brokerage account. In other words, a truly unified cash account that can be used for either (the existing Fidelity functionality gets pretty close to this).

I would be more than happy to give up FDIC for this to work.

rated:
   posted: Jul. 16, 2007 @ 7:56p
alert mods    

and even if it involves the money market funds (and not actual regular fdic bank type accounts) let's face it...how many Money Markets have failed (or paid less then $1 a share) in the history of the market (answer 1 or 2 out of zillions)...and this is FIDELITY not some little "fly by night" company...lol

In addition, if you have a brokerage account with them you have SIPC coverage and (some may not be aware) Fidelity actually has an "umbrella" insurance policy on top of their SIPC coverage that literally covers everything you have with them (told to me by a Fidelity CSR when i inquired about their coverage)....

rated:
   posted: Jul. 16, 2007 @ 9:13p
alert mods    

i chatted with a CSR right after Schwab announced their checking account and asked if they offered similar services. i'm glad to see something came of it.

rated:
   posted: Jul. 16, 2007 @ 9:14p
alert mods    

mobilebuddha said:i'm sorry, but could you clarify this? i'm not sure what you mean by this statement:

"they have affiliated true bank accounts tied to the investment account."

Edit: are you saying that the by having the true bank accounts tied to the investment account, that somehow the investment account is then FDIC insured?

stook2001 said:Just to be clear, my understanding was that there would be a suite of new banking services offered. My Fidelity account does offer check writing, ATM card, etc. BUT, if I recall correctly, there are limitations on ATM and check writing transactions. Additionally, not that I am that worried about it, but the investment account money markets are not FDIC insured. The other discount brokers set this up differently in that they have affiliated true bank accounts tied to the investment account. I wonder if Fidelity is planning the same...


NO! That is not what I meant. This was pure speculation but it would not surprise me if Fidelity setup an affiliate bank where customers could have standard FDIC insured checking and savings accounts. These accounts could be linked with your trading account but that does NOT mean that FDIC would cover your trading account balance. Again, pure speculation based upon what some of the other firms are doing.

rated:
   posted: Jul. 16, 2007 @ 9:18p
alert mods    

markkundinger said:If I had to vote, I would like to see there not be a seperate need for a "bank balance" checking account and a "cash balance" brokerage account. In other words, a truly unified cash account that can be used for either (the existing Fidelity functionality gets pretty close to this).

I would be more than happy to give up FDIC for this to work.

Why not set it up such that you can debit against your checking account. If you exceed the balance it pulls from your trading account and/or margin. Plus also offer the reverse - ie. settle trades first against your cash balance in the trading account with the ability to spill over to either margin or checking balance by customer configuration. That would be my ideal...

rated:
   posted: Jul. 16, 2007 @ 9:38p
alert mods    

Just to confirm I have heard the same thing from a rep at my local office. I was originally interested in an Income Management Account(IMA) but then found out that was targeted towards people in retirement. I am told this new account will be available on August 1. I was also told this new feature will be a subset of your current account... so it looks like it will only add features.

Message edited by: timetosave on 2007-07-16 21:42:25 CDT
rated:
   posted: Jul. 16, 2007 @ 10:12p
alert mods    

stook2001 said:markkundinger said:Why not set it up such that you can debit against your checking account.
This is almost exactly how Schwab's setup works. The problem is that when you "overdraft" off the checking, it automatically triggers two more transactions, a transfer in on the bank side, and a transfer out on the brokerage side. It's just a bunch of superfluous transaction activity that goes nowhere. (Plus, with Schwab the checking balance isn't used for settling trades).

I have accounts at enough banks already, it would be nice if they got simpler.

Message edited by: markkundinger on 2007-07-17 21:38:09 CDT
rated:
   posted: Jul. 17, 2007 @ 6:37p
alert mods    

It'll be great if Fidelity comes thru with this. I travel weekly and I'm keeping cash in eTrade for their ATM refunds. eTrade is $50K for ATM refund instead of half a million at Fidelity. I leave eTrade immediately if this pans out. Their CSRs are not the worst; even worse than airline CSRs.

rated:
   posted: Jul. 18, 2007 @ 4:01p
alert mods    

More detail from another chat session:

Stook1: Can you tell me what will be changing?
Fidelity CSR: Here are most the features that will be available on the Smart Cash.
Checkwriting
Debit cards
Online BillPay
EFT (formerly known as Money Line)
Automatic Investment (formerly referred to as FAAB)
Investment Rewards Credit Card
Direct Deposit
mySmart Cash Manager
Stook1: Arent all of these features already available?
Fidelity CSR: Everything except the mySmart Cash Manager.
Fidelity CSR: Some of the big changes are listed below.
Worldwide ATM Access - just look for the Visa�, Plus�, STAR�, or Interlink� logos
All ATM surcharges are automatically rebated
Fidelity CSR: Also on the mySmart Cash it has an FDIC-Insured Cash (Core).
Fidelity CSR: There are no minimums to get access to the cash management features.
Stook1: So will it be possible to have both FDIC insured mySmartCash money as well as the existing money market core account?
Fidelity CSR: You can have both types of accounts, however the money market will not be FDIC insured.
Stook1: Also, is there a limit on how many atm fees will be refunded?
Fidelity CSR: I don't believe so, but we will have to double check when the account launches.
Stook1: any idea how the mySmartCash core account would interact with the core money market in a trading account?
Fidelity CSR: Not yet.
Stook1: Are there any changes to the points system for the Fidelity credit card programs?
Fidelity CSR: I believe the point system should stay the same.
Stook1: ok, so the biggest changes are the ATM rebates and the FDIC insured core.
Fidelity CSR: That is correct.
Stook1: Will this be available on 8/1?
Fidelity CSR: That is the expect launch date, however it may change.
Stook1: Ok great. Do you know how existing customers will be notified?
Fidelity CSR: Notification is usually email.
Fidelity CSR: However you can check back on the 1st.

rated:
   posted: Jul. 18, 2007 @ 5:06p
alert mods    

Fidelity has added some information on the mySmart Cash Account. Link HERE (please wait for the page to load fully).

Apparently, you can set a minimum and maximum balance that triggers transfer to and from the mySmart Cash Account. It also talks a bit on the overdraft protection.

rated:
   posted: Jul. 18, 2007 @ 5:15p
alert mods    

markkundinger said:If I had to vote, I would like to see there not be a seperate need for a "bank balance" checking account and a "cash balance" brokerage account. In other words, a truly unified cash account that can be used for either (the existing Fidelity functionality gets pretty close to this).Me, too. If they'd keep everything exactly the way it is but drop the minimum balance for ATM fee refunds, it would be great.

 Close

Sign Me In
Nickname: 
Passw