Fidelity CMA fees, checking account rating, minimum requirements, cash rates, pros and cons, and promotion offers.

Fidelity Cash Management Account Overview

A Fidelity Cash Management Account offers traders what is essentially a checking account at their brokerage firm. This particular account happens to come not only with FDIC insurance, but also with Fidelity’s stellar customer service and a link to other Fidelity products. Let’s check it out.

Fidelity Cash Management Account

To help their customers manage short-term cash needs, Fidelity created their Cash Management Account. Technically, this is a brokerage account without margin or the ability to trade options or foreign securities. Fidelity has added checks, deposit slips, online images of all cleared checks, and a Visa Gold debit card, giving the account all the benefits of a regular checking account, and actually more.

The cash account comes with free bill pay and the ability to move money among Fidelity and non-Fidelity accounts, including investment accounts. Like an interest-bearing checking account, the Cash Management Account earns interest, although currently only 0.07%.

One option that customers can add to the account is Cash Manager. This feature automatically transfers funds from a Fidelity brokerage account when the balance of the Cash Management Account falls below a level determined by the customer. The Cash Manager feature can also be used as a form of overdraft protection.

Investors can elect to keep their money in short-term investments instead of the participating banks. Products like CD’s and money market mutual funds are available for purchase. Since this account is a brokerage account, customers can also invest in a range of other products, such as stocks, bonds, ETF’s, and mutual funds.

A great feature of the Fidelity Cash Management Account is that ATM fees charged by ATM owners are reimbursed. This fabulous policy applies to all ATM’s in the United States.

The Fidelity Rewards American Express card can be linked to the Cash Management Account so that the credit card deposits 2% of purchases into the checking account.

Fidelity Checking Review

Fidelity Checking Pricing, Fees, and Account Minimums

The Fidelity Cash Management Account has no minimum balance requirement, no minimum to open, and comes with zero monthly account fees. Investors can link the Cash Management Account to a regular Fidelity brokerage account, or simply execute trades in the Cash Account.

Fidelity offers over 10,000 mutual funds, many of which carry no load and no transaction fee.

Additional Features

Besides their cash management features, Fidelity offers a variety of investment services to their clients. Fidelity’s range of brokerage services includes retirement, margin, tailored investment advice, and actual brick-and-mortar branches for old school investors who want a little extra financial guidance.

Customer Service

Fidelity customer service can be contacted via an on-line chat system, phone, fax, or e-mail. The phone service is staffed 24 hours a day, 7 days a week, and the reps have a history of being trained and actually knowing what they’re talking about, which of course is a big plus. The chat service is on-line from 8:00 am to 10:00 pm EST. Fidelity also offers a lengthy list of phone numbers for customers traveling outside the U.S., from Albania to Zimbabwe and everywhere in between.

Fidelity has a virtual learning center where investors can find videos, articles and webinars on a wide range of financial issues.

Trading Tools

Although Fidelity does offer trading by phone and with a live broker, the cheapest option is trading on-line. The web site is simple and straightforward to navigate, for both trading and cash management. Customers who have multiple accounts will see all accounts upon a single log-in.

Fidelity Checking Review

Transferring funds, managing a debit card, and paying bills are all simple and easy to do within the web browser. The web site has a convenient debit card management tool that allows customers to change their PIN, notify Fidelity of travel, and more.

Fidelity Checking Account Review

Fidelity Cash Management Pros

Fidelity’s Cash Management Account has many great features at zero cost to the customer. This product easily beats the cash management features other brokers who require high account minimums, such as Firstrade, or who have high fees for debit card services, such as OptionsHouse. Having FDIC insurance up to $1,250,000 is great for clients who want to keep more money insured than the standard $250,000. These great features plus Fidelity’s excellent customer service produces an account that’s hard to beat.

Fidelity Cash Management Cons

The 0.07% interest rate on the Cash Management Account is lower than Schwab’s High Yield Checking, currently 0.10%. It’s also lower than CIT Bank MMA, currently 0.45% APY. Moreover, Fidelity’s standard commission of $49.95 on mutual funds is higher than at some of its rivals, such as Ally Invest ($9.95).

Fidelity Cash Management Account Review Recap

Fidelity offers a great checking account with zero fees that many Fidelity brokerage investors will likely sign up for convenience.

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