Comments on: Fidelity’s brokerage account as checking account

By: indexfundfan @ indextown » Blog Archive » Taxable MMF now a better deal than muni MMF

Tue, 12 Feb 2008 20:46:31 +0000

[...] since I am using Fidelity’s mySmartCash as my main checking account, I would still keep the cash with Fidelity. What I did this morning was to submit an online request [...]

By: indexfundfan

indexfundfan — Fri, 14 Sep 2007 15:53:08 +0000

Note that the new Fidelity “mySmartCash” brokerage account offers unlimited ATM rebates in addition to the above features.

By: DJ

DJ — Sat, 08 Sep 2007 20:18:04 +0000

indexfundfan:

Do you feel comfortable with SIPC? Is it worth it to give up FDIC for a little yields?

By: indexfundfan

indexfundfan — Tue, 17 Jul 2007 04:43:50 +0000

TFB, I think the minimums are enforced. I got in with the specified minimum but you can pull out the excess the very next day. Since this is a MMF, there is no capital gain tax consequence or trading limitation if you should do this.

Using FSPXX is kind of like a “semi-sweep” MMF since it will be automatically redeemed to meet debits but you need to manually buy it when you deposit cash.

Additional notes:

1. There is a small balance (less than $2000) fee of $12 a year, checked on the second Friday of November for FSPXX. (But there is no fee for the core account).

2. You will be given 30 days to meet the minimum balance if you should drop below.

3. Minimum subsequent purchase for FSPXX is $1000.

4. Some on FWF reported that Fidelity is improving on its banking features, possibly with ATM rebates. We’ll see how it goes.

By: TFB

TFB — Tue, 17 Jul 2007 04:23:29 +0000

Thanks for the detailed info. Do you know if Fidelity enforces the minimums (minima?) on those AMT Free MM funds like FSPXX? $25k initial and 10k ongoing are very high hurdles.