New Fidelity Banking Features (ie. ATM rebates)

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.

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).

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?

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...

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

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)....

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.

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.

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.

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.

Well, that's interesting, it does look like it will be a seperate "checking account" that can link to multiple different fidelity accounts. From my own narrow desire for a "unified account", this is disappointing, but the ability to spiderweb it with multiple Fidelity accounts is pretty cool. I also like the apparant ability to sweep cash both in and out of the smartcash checking.

stook2001, you were very fortunate to get a CSR on chat that had even that much advanced information about this new Fidelity product, as i have chatted with two seperate csrs recently, and neither one has any information at all about it (other then it was coming soon)....I really hope it does launch on Aug 1st, as i can't wait to check it out!

I've had my brokerage with Fidelity for a long time (and they are top-notch) and it would be great to do all your banking with them, also...key points for me (for this to be good) is: 1) decent apy on checking account 2) no balance requirements 3) unlimited atm rebates....if it really has all that, this could be outstanding...

Even though they have no official announcement yet, they have updated their Glossary pages with "mySmart" phrases. Please scroll down to mySmart... on this page.

http://personal.fidelity.com/products/checking/?bar=c

I think this will be available from 1st Aug ... Jus talked to a rep. Funny part is ... he didn't know about this link

Here's a better link:

Fidelity mySmart Cash Account
http://personal.fidelity.com/accounts/aong/sca_learn.shtml.cvsr

3.50% APY - cool
No ATM Fees & 3rd party fees refunded - HOT!

*yawn* I thought Fidelity was pretty good as it was. Outside of Dolmar's servants and Dolmar's valets does any typical FWFer really use cash? I sometimes have the same $20 bill in my wallet for a month or more.

I'll keep my GMAC 5.3% to write (the rent) checks and for the $6/month refund which is $6 more than I use every month.

I'll keep my FSLXX for the 5.17% rate and instant access to securities.

I guess free ATM rebates isn't a big enough draw to put money in at 3.5%. I can't believe the fervor this is causing.

I think you guys are not understanding the benefit of Fidelity's Self Funded Overdraft Protection.

Basically you can have $1 sitting in your 3.5% MyCash account and everything else sitting at 5.xx% in a Fidelity Money Market account. Whenever there is a debit on your Fidelity checking account, the cash will automatically be withdrawn from the 5.xx% Fidelity Money Market account. So the interest rate should be pretty competitive (even better than Charles Schwab's 4.25%)

I might be wrong, but I think that is how it works.

mySmart Cash ManagerSM Self Funded Overdraft Protection

As part of mySmart Cash Manager, Self Funded Overdraft Protection helps fund mySmart Cash AccountSM debit requests if the debit requests (i.e., from a debit card, direct debit, Fidelity BillPay®, check disbursement, wire, or other cash transactions) exceed the mySmart Cash Account's available cash balance.

* 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.

* If there are insufficient funds to satisfy the debit request in your first Fidelity Funding Account, Self Funded Overdraft Protection earmarks any available funds and then searches the second Fidelity Funding Account for the difference. If sufficient funds are found, Self Funded Overdraft Protection moves them to your mySmart Cash Account and satisfies the debit request. If there are insufficient funds to satisfy the debit request in your first and second Fidelity Funding Accounts, mySmart Cash Manager Self Funded Overdraft Protection looks for the difference in your third Fidelity Funding Account, and then your fourth, etc., until enough funds are found to satisfy the debit request, or there are no more Fidelity Funding Accounts.

* If there are insufficient funds to satisfy the debit request in your entire Fidelity Funding Account hierarchy, mySmart Cash Manager Self Funded Overdraft Protection does not move any money, and the debit request is processed in the same way as other insufficient fund transactions.

ScootyPuffSr said: ChinaMeng said: I think you guys are not understanding the benefit of Fidelity's Self Funded Overdraft Protection.

Basically you can have $1 sitting in your 3.5% MyCash account and everything else sitting at 5.xx% in a Fidelity Money Market account. Whenever there is a debit on your Fidelity checking account, the cash will automatically be withdrawn from the 5.xx% Fidelity Money Market account. So the interest rate should be pretty competitive (even better than Charles Schwab's 4.25%)

I might be wrong, but I think that is how it works.


I already do that with bill-pay and writing checks from my core account which is always zero and my FSLXX which auto-triggers to cover.

I may be missing something but the only real benefit to me would be the ATM rebates. However, I guess I'm the only one who doesn't take advantage of it and already has a $6/month 5.3% account which beats a 3.5% account anyway.

Right, but this will not be a 3.5% account but a 5.17% account (or whatever rate FSLXX is)

ScootyPuffSr said: ChinaMeng said: I think you guys are not understanding the benefit of Fidelity's Self Funded Overdraft Protection.

Basically you can have $1 sitting in your 3.5% MyCash account and everything else sitting at 5.xx% in a Fidelity Money Market account. Whenever there is a debit on your Fidelity checking account, the cash will automatically be withdrawn from the 5.xx% Fidelity Money Market account. So the interest rate should be pretty competitive (even better than Charles Schwab's 4.25%)

I might be wrong, but I think that is how it works.


I already do that with bill-pay and writing checks from my core account which is always zero and my FSLXX which auto-triggers to cover.
I have been doing this too using this "unofficial" feature.

I guess MyCash just makes this feature "official".

It seems that a fraudulent debit request can trigger "the self-funded protection" and steal not only the cash but also the MMF. Does Fidelity email you upon such an automatic money move from FSLXX?

Fidelity’s banking functions are impressive. Thank you the Fatwalleters for discussing them.

Yoroku

cleanmug said: I found a fraudulent transaction in my mySmart Cash account this morning. It was a $6.00 debit transaction from Air Canada. I haven't used the card for months, and have never purchased anything from AC...

When I called the bankcard center to report the fraud, they indicated that I would receive an affidavit within a week. They will only issue a provisional credit after they get the signed copy back from me.

This obviously isn't a big deal--it is only $6.00 on an account I never use. But I was still surprised that they didn't immediately provide a provisional credit... This would be a real issue if the amount had been larger. Has anyone else experienced similar treatment at the hands of Fidelity?Yes, I had the same thing happen to me, but it was with a Fidelity Signature Rewards Visa card, issued by FIA card services.