Fidelity To Offer SPAXX As A Core Position In Cash Management Accounts Beginning Next Week.

[Healthy Lifestyle]

Many thanks for the very helpful comments and efforts to get me up to speed.

 

[PatrickA5]

Changed mine today.

I'm considering going back to Fidelity CMA as my daily checking account. Although my Chase checking is "free", I'm losing a good $300-$500 per year in dividends. Back when interest rates were zero, it didn't matter. Trying to decide if I want to go through the pain of moving about a dozen monthly direct debits back to Fidelity.

 

[Surewhitey]

Changed mine today.

I'm considering going back to Fidelity CMA as my daily checking account. Although my Chase checking is "free", I'm losing a good $300-$500 per year in dividends. Back when interest rates were zero, it didn't matter. Trying to decide if I want to go through the pain of moving about a dozen monthly direct debits back to Fidelity.

Why 12? Trying to stay under $10k? I've done plenty of larger transfers without issues.

 

[mrfeh]

Why 12? Trying to stay under $10k? I've done plenty of larger transfers without issues.

I think Patrick was talking about the hassle of changing autopays from one account to another.

 

[Healthy Lifestyle]

I think Patrick was talking about the hassle of changing autopays from one account to another.

Yes I am thinking autopay reset can be a pain.

 

[xlf11]

I just did that: AE, WF Capital One and Discover can be effective right away while BOA took one more billing cycle. Only utility account needs to manually pay online for the current bill once for the autopay to be effective for the next bill. Overall, it's not as bad as I thought.

 

[PatrickA5]

Yes I am thinking autopay reset can be a pain.

I just did 11 of the 12 autopay changes. Took about 30 minutes, so not that big of a deal. My electric company wouldn't let me change it (yet) due to being so close to the due date.

So, I'm back to having my Fidelity CMA be my daily checking account. Since 90% of our expenses go on credit cards, the checking account doesn't get used that much anymore. I'm going to keep my Chase account for the remainder of the year and then probably change over to a local credit union that will be used for things that I can't use the CMA for.

 

[sengsational]

Many moths ago, in order to get the higher interest rate, I took 100% of my Cash Management money and bought SPAXX as indicated one could do in this thread:

Fidelity Cash Management a Year Later

I'm one who acted on your tip & have used the account for funding CDs with my extra cash. I've also opened a 2% card (another smaller bonus) and opened an account for MIL. I personally like the website and app alot & have sold it to friends. I'm going to look deeper into the MM as I've also...

www.early-retirement.org

So whenever a bill was paid, it automatically transferred the amount of the bill to CMA and paid the bill. Worked fine, but I thought it was "a lot of work" for Fidelity. But I wasn't going to have significant amount of money at 2% when it could be at 5% (at the time).

So apparently I can simplify it now...I'll go take a look.

ETA: Used the link above and it went right to the screen to make the change. DONE!!

 

[audreyh1]

Fidelity handles the draw from multiple MM funds everywhere so it’s routine. An extra sweet feature for sure but they clearly made it a priority so I can only conclude that they’ve made it as efficient as possible, automated etc.

 

[Finance Dave]

I’ve always had SPAXX for my core position, but I usually move it to FZDXX when it gets high as it’s rate has been slightly higher.

 

[Dtail]

I’ve always had SPAXX for my core position, but I usually move it to FZDXX when it gets high as it’s rate has been slightly higher.

Same here

 

[stephenson]

Hi All,

Had quick call yesterday with our Fidelity advisor - we do once every three months just to catch up a bit.

He noted SPAXX was now allowed as a core position for Cash Management accounts - when you open the account there is a banner asking if you want to change - easy one to change since I was manually moving funds to SPAXX when they hit the CMA (we call it the Ops Account ).

We also discussed what to do with cash - I had been buying CDs, and we had previously discussed. I think we settled on moving all the SPAXX cash in the main account to FDZXX ... haven't executed this, yet. Any better options? I do want to keep a substantive (for us) cash account.

Thoughts?

 

[Healthy Lifestyle]

Good question as I am also in this position with a new Fidelity Acct.
FDZXX was also suggested to me, but I am still SPAXX.

 

[mrfeh]

Hi All,

Had quick call yesterday with our Fidelity advisor - we do once every three months just to catch up a bit.

He noted SPAXX was now allowed as a core position for Cash Management accounts - when you open the account there is a banner asking if you want to change - easy one to change since I was manually moving funds to SPAXX when they hit the CMA (we call it the Ops Account ).

We also discussed what to do with cash - I had been buying CDs, and we had previously discussed. I think we settled on moving all the SPAXX cash in the main account to FDZXX ... haven't executed this, yet. Any better options? I do want to keep a substantive (for us) cash account.

Thoughts?

Regarding core positions in CMAs: Fidelity To Offer SPAXX As A Core Position In Cash Management Accounts Beginning Next Week.

FDZXX is Fido's highest interest MM (I'm pretty sure), but the minimum investment is $100K. Even if you're talking about that much money, you need to compare rates after taxes, which will depend on your state.

 

[stephenson]

Florida for me - so no state tax on this. The FZDXX has a lot more non-gov paper than SPAXX - a bit of concern?

 

[braumeister]

Threads merged.

 

[Dtail]

Regarding core positions in CMAs: Fidelity To Offer SPAXX As A Core Position In Cash Management Accounts Beginning Next Week.

FDZXX is Fido's highest interest MM (I'm pretty sure), but the minimum investment is $100K. Even if you're talking about that much money, you need to compare rates after taxes, which will depend on your state.

100k minimum, but that is just to open the account. No minimum balance thereafter.

 

[audreyh1]

Regarding core positions in CMAs: Fidelity To Offer SPAXX As A Core Position In Cash Management Accounts Beginning Next Week.

FDZXX is Fido's highest interest MM (I'm pretty sure), but the minimum investment is $100K. Even if you're talking about that much money, you need to compare rates after taxes, which will depend on your state.

SPAXX yield is just slightly lower than FZDXX so unless you keep large amounts in your CMA I wouldn’t worry about it.