Fidelity vs checking account

[Scorpius]

Looks like fidelity has a money management account with debit card where from what I see you can invest in a money market and as you use your debit or pay bills it sweeps nightly and sells MM to cover. Appears to be a new way of banking vs traditional.
I currently have a traditional bank and hate to see the couple thousand that could be making me money just sit there until bills clear.

Anyone using this feature and how’s it working for you?

 

[StuP]

Interesting idea. Better not get that debit card info stolen !

 

[fast306stang]

Sub'd. This is an interesting concept.

If the money market takes a downturn, how do you protect your investment? I understand there will be daily fluctuations.

 

[3rd Rail]

Any limits on the number of monthly transactions?

 

[WallsGa]

Interesting..... Is there any transaction fee?

 

[Greybeard]

I use it and there are pros and cons.
You have to remember it is a debit card, if your card is compromised, you are cover, but you might not get your money back for up to sixty days. Credit card almost over night.
There are as far as I know no limits to monthly transactions, it think you are limited to 500 at a time.
Any transactions fees are reimbursed by fidelity, you need to be a premium member, don’t know how much, but it ties in with your ira. You do need to open this in a brokerage account, transfers when you hit enter and it does sweep every night.
The card is chipped and can be used anywhere.
You can also have bill pay and direct deposit set up with this account. Money market does pay 1.97%, not a lot but not bad right now. With a mm, it never fell below 1.00, but it could happen.
All that and you will still need a credit union or normal bank.
Never keep your money in one bucket.
FYI, hope this helps.

 

[chucklenut]

thats a cool idea but i gotta wonder what the risk is involved

if i earmark money to pay bills or rent then i dont want that to be on the line. of course conversley if i could earmark my bills months out (and i do pay bills early) and have them paid and earn while they sit im cool with that

 

[Gimmeguns]

Family savings cu pays 2.5% on checking accounts. The only condition is you must have 20 transactions a month

 

[Greybeard]

That a pretty good rate, my credit union only pays .05apy.
I rechecked fidelity their rate of 1.97 was Ytd. For apy it was 2.37%.
There looks to be a lot less fees overall for fidelity, just a thought.
I use the credit union and fidelity, I direct deposit in fidelity, and if needed transfer into credit union for checks and cash. I don’t care to much for debit cards unless used at atms.
As far as security, fidelity has a account lockdown, it prevents anything from moving out of your account (not including debit, check or bill pay) unless you double verify every transaction.

 

[timbgtm]

Family savings cu pays 2.5% on checking accounts. The only condition is you must have 20 transactions a month

I've been with family savings for probably 30 years and very happy with them.