April 22, 2024
179 Comments
by Chuck
Starting June 15, 2024, Fidelity Cash Management account will offer an elective option to have your default sweep account be the high-yield SPAXX money market fund (4.95% yield at time of this writing). Until now, their default deposit sweep is an FDIC account with an interest rate which is not highly competitive (2.72% at time of this writing).
There were always work-arounds, but now it’ll be simple to have your Fidelity Cash Management Account act like an ordinary checking account and also get top-yield interest rates. The Fidelity CMA has long offered traditional banking features like ACH routing and account numbers, Billpay, mobile check deposit, physical checks, and ATM cards. A lot of travelers like the CMA account due to its unlimited worldwide ATM fee reimbursem*nts.
Hat tip to MyMoneyBlog
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179 Comments
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oldest most voted
Sam(@guest_1836008)
April 25, 2024 20:44
#1836008
“. A lot of travelers like the CMA account due to its unlimited worldwide ATM fee reimbursem*nts.” but don’t you pay an FX fee with them unlike schwab
1
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John(@guest_1835649)
April 25, 2024 02:33
#1835649
Saves me hassle of having 2 accounts – CMA (for Debit card) and Brokerage (for money market sweep). Oh wait I already have those two, not like I’m going to close Brokerage now…
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007(@guest_1835380)
April 24, 2024 14:19
#1835380
William Charles Chuck Just tested and Fidelity CMA debit card now works with Zelle app! Still limited to $500 send and $5000 receive per week but a significant improvement in my book
2
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Terp(@guest_1835608)
April 24, 2024 22:39
#1835608
007
You tested receiving, also? How do you set that up so that it “receives” to the debit card?
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007(@guest_1835610)
April 24, 2024 23:03
#1835610
Terp
Yes tested receiving ($10). Get a credit like you would a refund. Works with debit card locked which is nice because I usually keep locked
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Terp(@guest_1835611)
April 24, 2024 23:04
#1835611
007
And you signed up directly with Zelle app (since Fidelity doesn’t support Zelle)?
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007(@guest_1835613)
April 24, 2024 23:22
#1835613
Terp
Yes. I’ve used it before with M1 also back in the day.
Reply
Blender(@guest_1835106)
April 23, 2024 20:33
#1835106
Is anyones mortgage pulled from their CMA? Wouldnt mind moving those bills to an interest-earning account and ditch WF.
1
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Justin(@guest_1835108)
April 23, 2024 20:35
#1835108
Blender
yes
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Blender(@guest_1835400)
April 24, 2024 15:11
#1835400
Justin
No issues Im assuming?
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Blender
What issues are you expecting? The CMA has an account number and routing number that you can give to your billers or you can use Fidelity’s great billpay service.
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Chang(@guest_1835081)
April 23, 2024 19:48
#1835081
Great, I am hesitating if I should open another Brokerage account just for short term cash. Now I can wait and use CMA.
The last piece of Fidelity is Zelle, once CMA support Zelle I will close my Chase checking account and transfer the asset in Chase Investment (to avoid monthly fee) to fidelity.
1
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Jimmy(@guest_1835263)
April 24, 2024 09:13
#1835263
Chang
As far as I know chase self directed investing, does not charge any monthly fee.
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Chang(@guest_1835338)
April 24, 2024 12:17
#1835338
Jimmy
Yes, but the checking account does. The only reason I have an investment account in Chase is to avoid the monthly fee of checking account.
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Chang
Zelle works with Fidelity via Zelle app. Just add your Fidelity card there. limited $500 to send and $5000 to receive per week
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Is there a sign up bonus for Fidelity CMA. Asking for spouse?
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Chang(@guest_1835082)
April 23, 2024 19:50
#1835082
Ravi
It used to have FIDELITY100 promo code and now it’s expired.
1
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Ravi
Nope. The good news is Fidelity CMA promotions have been allowing existing account holders to open a new account to be eligible (there may be some restrictions for churners who did similar promotions in the past), so no need to wait for one to open an account. Ravi
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DrWendy(@guest_1835043)
April 23, 2024 17:52
#1835043
I’ve been using the Fidelity Bloom account as my primary checking for over a year now and it’s been great. Fidelity Bloom has a SPAXX core as well as offering a $30 a year savings bonus (10% cash back on the first $300 saved EACH year) and a .10 debit transaction bonus (limit 15 a day). It’s a pretty sweet setup altogether although the app is garbage (unless you enjoy taking surveys regarding your feelings regarding finances). I think that the Bloom account still is a better deal than the standard CMA account but there could be details that I’m overlooking.
1
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Abby Normal(@guest_1835084)
April 23, 2024 19:51
#1835084
DrWendy
I could never get internal transfers to work using Bloom. Easy transfers to IRAs and 529s were never an option for me like using a brokerage account has.
1
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DrWendy(@guest_1835115)
April 23, 2024 20:50
#1835115
Abby Normal
Did you use the website? The App has little practical functionality but the website works great.
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RiskandReward(@guest_1835193)
April 24, 2024 01:20
#1835193
DrWendy
One detail on the CMA: it comes with an ATM debit card that can be used to get cash at worldwide ATMs for free (reimbursed fees). If that is not useful to you, then Bloom is the better account. I use both, CMA for billpay/checking, and Bloom for segregated fintech/app links.
1
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JD(@guest_1835207)
April 24, 2024 03:18
#1835207
RiskandReward
The CMA also has an overdraft protection feature which can pull cash/liquidate MMFs from other accounts. Additionally, securities can be transferred between the CMA and your brokerage account, while only cash can be transferred with Bloom accounts.
1
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DrWendy(@guest_1835218)
April 24, 2024 05:35
#1835218
RiskandReward
Thanks for mentioning the ATM fees; I so rarely need cash that I’d forgotten about this. I do have a secondary free checking account at a local bank that I’ll use for cash withdrawals or zelle.
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RiskandReward
Does Fidelity CMA allow writing checks? Also can it be used for automatic payments for mortgages, utility bills and credit cards? I am trying to figure out if I can open one and use it for these daily things, the current account I use for these things does not bear as much interest.
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007(@guest_1835657)
April 25, 2024 04:24
#1835657
favo🔗
Yes to both questions
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RandSand(@guest_1835200)
April 24, 2024 02:26
#1835200
DrWendy
I thought I was the only one having a hard time transferring from he Bloom save to an HSA account. Almost considered moving it out towards another bank and then back in until I figured out that I could move it to a CMA account first then to the HSA.
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DrWendy(@guest_1835217)
April 24, 2024 05:26
#1835217
DrWendy
I used to use Cap One as my primary checking. It really bothered me, needing to maintain a decent balance to cover expenses but not earning any interest. With each deposit I’d question if I could move more money to savings. The biggest benefit of using a cash management account as your checking account is being able to keep all your cash in one pile and earn a good interest rate. Low fees, bonuses, and other benefits are gravy.
1
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jz(@guest_1834998)
April 23, 2024 16:16
#1834998
Fidelity Cash Management sounds really interesting based on the discussion here. Wondering if DoC will write something up.
1
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Karl(@guest_1834988)
April 23, 2024 15:53
#1834988
From the Fidelity Goal Booster $100 bonus T&Cs, for those who’ve recently gotten the bonus:
“Account holders must maintain the bonus award in the account for at least 90 days from the date on which the bonus award is credited to the account.”
“Amounts deposited by Fidelity in the form of the bonus award will be initially held in the eligible account’s core position.”
SPAXX is a different core position.
I doubt Fidelity will care, but a shady bank like Amex would probably send in the RATs.
1
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vc(@guest_1835179)
April 23, 2024 23:58
#1835179
Karl
I didn’t see that part about the core position. Not on my computer where I saved the terms, but I recall it saying that the funds must be held in the acct. I moved mine to SPAXX a few wks ago..
1
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WendyR(@guest_1834971)
April 23, 2024 15:20
#1834971
I have been using a Fidelity CMA for over a year now as my primary checking and it’s been great. The Fidelity Bloom account has a SPAXX core. The Bloom app is useless – it mostly administers surveys that ask about your feelings regarding your money so just avoid it. As others have stated, Fidelity has very few fees but the Bloom account has a few additional fun features – a $30 ANNUAL savings bonus (10% back on first $300 deposited) and a $0.10 debit card bonus (up to 15 a day). It’s a lovely account.
Reply
vc(@guest_1835180)
April 24, 2024 00:00
#1835180
WendyR
Do you do the full $45 “spend”?
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