Fidelity famous for investment deals, but what many people do not know is that he also had a very good account.
Fidelity cash management accounts offer much the same services as other top online bank, all at virtually no cost. And although the online experience a little clunkier than with some other banks, it has some additional features that can make the perfect choice in certain situations.
Fidelity Cash Management Account Details
cash management account Fidelity offers all the basic services that we have come to expect from an online bank with no fees or minimum. Online banking experience is not quite slender like what you find with other online bank, but you have easy access to pay bills and transfer money between accounts (both at Fidelity and other institutions) is simple and fast.
You also get a Visa debit card, free examination, and all ATM fees are to be replaced, with the exception of foreign transaction fee of 1%.
Fidelity also has a smartphone application which lets you keep a check from anywhere and keep a close eye on your account.
All these basic services are free, and there is no minimum balance required.
Currently, Fidelity cash management account paying interest of 0.07%, regardless of your balance.
Fidelity cash management account has some unique features that may appeal to some types of consumers.
First, it offers a “Cash Manager” service has three functions:
basic overdraft protection that automatically move money from a designated account if you overdraw your checking account (offered by other online banks).
Set a target of a minimum balance in your account and Fidelity will automatically transfer money from another account when you dip below that balance. This can prevent the overdraft occurred in the first place.
Set the maximum target balance in your account and Fidelity will notify you when you exceed it so that you can transfer money to a long-term investment.
Fidelity also offers integration with a very good credit card, which offers unlimited 2% cash back on American Express cards and is not limited to 1.5% cash back on your Visa card. These cards require a Fidelity account, and one option is to have your cash back directly to your cash management account. Although you can have those rewards deposited into a Fidelity IRA or 529 plan. Fidelity also offers something called “Full View” which allows you to see not only all your loyalty accounts in one place but your account at another institution as well. Complete also has the ability to make budgeting external service like mint.com unnecessary.
Finally, unlike many online checking account, Fidelity actually have physical locations you can visit. You can find a branch near you here.
Are there any gotchas or Extra Cost?
For all the basic services, Fidelity cash management account is free of charge. But there are a few things to note.
There is a foreign transaction fee of 1%, as well as fees for various services such as a bank wire ($ 10-15) and cashier’s check ($ 10) or problems such as checks returned ($ 15).
Also, cash management account technical Fidelity brokerage account that allows you to buy and sell mutual funds, CDs, and certain other investments. There are different charges for those types of transactions, but they are not necessary if you use it only as a checking account.
You also can not deposit cash into your Fidelity cash management account, and once again the online user experience is not quite as smooth as with some other online banks.
Fidelity received rating A score of transparency of MagnifyMoney.
Here is a brief summary of the pros and cons:
- Changing ATM fees
- There is no minimum account fees
- No monthly fees
- free overdraft protection by linking to a savings account
- Extra “Cash Manager” feature
- Integration with Fidelity credit card cash prizes
- “Full View” that could serve as the central budgeting and account management platform
- online experience could have been better
- foreign transaction fee of 1%
- Unable to deposit cash
How You Can Open Fidelity Cash Management Account?
This process is not quite as simple as some other banks because you are actually opening a brokerage account, which has more rules vicinity of a conventional checking account. But it was not too difficult.
From Fidelity.com home page, you can click the “Select an Account” which will take you to a list of different types of accounts. You will see the “Broker and Cash Management” option under the “Investment and trade” section, and you can click the “Open online” link accordingly. From there you will be prompted to enter some personal information, answer a few questions to verify your identity, please enter your current job information, select the features you want (such as paying bills), signed the terms and conditions, and then make your initial deposit.