- Accounts & Trade
- mySmart Cash Accountsm
Frequently Asked Questions
- What is a mySmart Cash AccountSM?
- How is the mySmart Cash Account different than a brokerage account?
- I already have a brokerage account with Fidelity. Should I still open a mySmart Cash Account?
- What are the spending and money movement features offered with the mySmart Cash Account?
- How do I open a mySmart Cash Account?
- What information is provided in the online Overview?
- Why should I set up mySmart Cash ManagerSM?
- Can I use the mySmart Cash Account like a checking account?
- Do I still need a checking account?
- Can I designate a mySmart Cash Account as a checking account in Quicken®?
- How long will it take for me to gain access to my cash after I open the account?
- I thought Fidelity was a brokerage company. How can you offer FDIC insurance coverage?
- Who is responsible for monitoring my account to make sure it does not exceed FDIC coverage limits?
- What if my total deposits at the bank you select exceed FDIC insurance coverage limits?
- If my deposits are held at a bank outside Fidelity, do I need to do anything special to access these funds?
- Will the interest rate I receive depend on which bank I am assigned to?
- Does Fidelity need my consent to move my Cash Balance from one bank to another?
- I still have questions. What should I do?
Q: What is a mySmart Cash AccountSM?
A: The mySmart Cash AccountSM is a brokerage account for your everyday spending needs with all the benefits of a traditional checking account. Some of these benefits include:
- A full suite of spending and money movement features.
- Easy online access to your account balance and a summary of your spending and money movement transactions viewed on the Overview page.
- The ability to link the mySmart Cash Account to other investment accounts or a bank account using the mySmart Cash ManagerSM feature, giving you full access to your cash when you need it.
- No minimum initial deposit required to open the account.
- No account minimum balance or monthly maintenance fees.
- A great interest rate that is higher than most traditional checking accounts.1
- Deposits are eligible for FDIC insurance.2
- The mySmart Cash Account comes with the great Fidelity 24/7 customer service you trust.
Q: How is the mySmart Cash Account different than a brokerage account?
A: Unlike a traditional brokerage account, the mySmart Cash Account is intended to be a cash management spending account, but does not permit margin trading. It is designed to function like a checking account, and is offered with a complete set of cash management features with no fees. Finally, the automated money movement feature - mySmart Cash Manager -- is available only through the mySmart Cash Account.
TopQ: I already have a brokerage account with Fidelity. Should I still open a mySmart Cash Account?
A: Yes. The mySmart Cash Account is intended to complement, not replace your existing investment accounts at Fidelity. It enables you to separate your spending activity from your investment activity while leveraging all the free Fidelity services and our unparalleled customer service. By using the mySmart Cash Account as your spending account, you can enjoy enhanced cash management features and take advantage of the automated money movement capabilities provided by the mySmart Cash Manager feature.
TopQ: What are the spending and money movement features offered with the mySmart Cash Account?
A: The mySmart Cash Account has the following features available:
- Free checkwriting, with no charge for standard checkbooks.
- Free online Fidelity BillPay®.
- No-fee ATM/Debit card at ATM machines displaying the Visa®, PLUS® or STAR® logo.3
- A credit card with no annual fee that lets you redeem points for cash back into your mySmart Cash Account at a 1.5% rate.4
- Free Electronic Funds Transfer.
- Overnight transfer of funds to or from your investment accounts.
Q: How do I open a mySmart Cash Account?
A: The easiest way to open a mySmart Cash Account is to enroll online at http://Fidelity.com/mySmartCashAccount. Other alternatives include enrolling by phone at 1-800-931-9987, or printing an application, filling it out and mailing it in. You can download and print an application at http://Fidelity.com/mySmartCashAccount.
TopQ: What information is provided on the online Overview?
A: The Overview page provides a centralized location for information on the mySmart Cash Account with easy and direct access to all money movement and spending features. You can even set it up as your Fidelity.com homepage. The Overview page is accessible from your Portfolio Summary page on Fidelity.com and lets you:
- View your spending and money movement history.
- Receive alerts about important account-specific events.
- Access money movement and spending features.
- See how much interest and cash back you have earned this year.5
Q: Why should I set up mySmart Cash ManagerSM?
A: By setting up mySmart Cash Manager, you can get more from your money by automatically moving cash to your mySmart Cash Account when you need it and receive alerts so you can actively invest extra cash when you have it.
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Here's how mySmart Cash Manager works:
- You select a mySmart Cash Account, and set a Maximum Target Balance, a Minimum Target Balance, a Minimum Transfer Amount, and a hierarchy of Funding Accounts to fund your mySmart Cash Account.
- When the cash in your mySmart Cash Account exceeds your Maximum Target Balance, mySmart Cash Manager alerts you so you can move the money and invest it for the long run.
- If the cash in your mySmart Cash Account drops below your Minimum Target Balance, mySmart Cash Manager moves available cash automatically from your Funding Accounts in the order you specified.
Sign up for mySmart Cash Manager Overdraft Protection, and if your debit requests (e.g., checks, debit card, direct debit) exceed the balance in your mySmart Cash Account, available funds from your Funding Accounts will automatically be moved to your mySmart Cash Account to cover the debit.
Available funds include cash (core), available margin, and non-core money market funds. These sources will be drawn from the first Funding Account in this
order before the next account is tapped.
Q: Can I use the mySmart Cash Account like a checking account?
A: Yes. The mySmart Cash Account is designed to provide you with the features of a traditional checking account but with no annual or minimum account fees, great interest rates, easy cash management, and the great Fidelity service you can depend on.
TopQ: Do I still need a checking account?
A: We encourage you to try the mySmart Cash Account and decide for yourself if you still need a checking account. The mySmart Cash Account may meet all your spending needs, or it can work in conjunction with your existing checking account.
TopQ: Can I designate a mySmart Cash Account as a checking account in Quicken?
A: Quicken recognizes a mySmart Cash Account as a checking account when you follow these steps:
- From the Main Menu in Quicken, choose Tools > Accounts List
- Select the investment account to which you'd like to add a linked checking account, then click the Edit button.
- On the General Information tab on the Account Details window, choose "yes" to "Show cash in a checking account." Quicken will prompt you to back up your data file.
- Once the backup is complete, the linked checking account is created in Quicken with the same name as your investment account, plus the suffix "Cash." Click the OK button to save your changes.
Quicken converts all transactions in the investment account to their transfer equivalents. For example, "Buy" transactions are converted to "Buy X" transactions, and "Sell" transactions are converted to "Sell X" transactions.
TopQ: How long will it take for me to gain access to my cash after I open the account?
A: The length of time will vary depending on the method you use to fund your account.
Opening your account online using Fidelity.com and funding via EFT from your bank should make the account and funds available to you within 3-5 business days. If you fund via check, it generally takes 7-10 business days. Funding your new mySmart Cash Account via transfer from an existing Fidelity account makes the account available the next business day.
Once opened, you can move money into and out of your mySmart Cash Account immediately via EFT, account transfer, or Bank Wire.
Fidelity BillPay® will be activated and available in about one business day.
We will order your debit card as soon as your account is opened and you will receive the card within 7-10 business days. We must receive a completed signature card before we can order your checks. Checks will arrive 7-10 days after we receive your completed signature card.
TopQ: I thought Fidelity was a brokerage company. How can you offer FDIC insurance coverage?
A: Fidelity does not offer FDIC insurance. Funds held in your mySmart Cash Account are swept to an assigned bank, where they become eligible for FDIC insurance coverage, subject to specific coverage limits. You may see the bank referred to as a "Program Bank." We will disclose the bank to which you have been assigned during the account opening process. Please refer to http://Fidelity.com/mySmartCashAccount for the list of banks eligible to receive your deposits, and for disclosures and important information about this process.
TopQ: Who is responsible for monitoring my account to make sure it does not exceed FDIC coverage limits?
A: You are responsible for monitoring the total amount of your assets on deposit with the bank assigned to receive cash (including amounts in other accounts at that bank held in the same right and legal capacity) in order to determine the extent of FDIC deposit insurance coverage available to you on those deposits.
TopQ: What if my total deposits at the assigned bank exceed FDIC insurance coverage limits?
A: If you exceed the FDIC coverage limits ($100,000 per individual) at the bank assigned to hold your deposits, contact us at 1-800-931-9987 to discuss changing to another eligible bank, if available.
Remember the FDIC limit applies to all accounts you hold at a bank, so be sure you consider balances in other accounts you have directly with the bank.
TopQ: If my deposits are held at a bank outside Fidelity, do I need to do anything special to access these funds?
A: No. Use your mySmart Cash Account just as you would any account at Fidelity. Fidelity will automatically manage the money movement between the bank and the mySmart Cash Account. You cannot access or withdraw your cash by contacting the bank directly.
TopQ: Will the interest rate I receive depend on the bank I am assigned to?
A: No, the interest paid to you is independent of the bank assigned to hold your deposits. However, the interest rate may change from time to time, and any changes will be posted on the Overview page on Fidelity.com
TopQ: Does Fidelity need my consent to move my cash balance from one bank to another?
A: No. Fidelity may from time to time change the banks eligible to receive cash balances from a mySmart Cash Account. In such instances, you will be notified of the change if it effects your account.
TopQ: I still have questions. What should I do?
A: You can always call Fidelity at 1-800-931-9987 with any questions about the mySmart Cash Account.
Top- The Annual Percentage Yield (APY) on the mySmart Cash AccountSM is 3.50% as of 07/17/07 and is subject to change. The current APY on the mySmart Cash AccountSM is more than 7 times higher than the national average APY of banks, thrifts and credit unions based on a survey by Informa Research Services, Inc. Calabasas, CA (www.informa.com), as of 07/17/07 for checking accounts with a balance of $1. Although the information has been obtained from the various institutions themselves, its accuracy cannot be guaranteed.
- The Cash Balance in the mySmart Cash AccountSM is swept to an FDIC-insured interest bearing account at a participating bank. The deposit at the Program Bank is not covered by SIPC. The deposit is eligible for FDIC insurance subject to FDIC insurance coverage limits. For more information about FDIC insurance coverage, please visit the FDIC website at www.FDIC.gov. As referenced in the FDIC-Insured Cash (Core) Disclosure Statement for the mySmart Cash AccountSM, customers are responsible for monitoring their total assets at the Program Bank to determine the extent of available FDIC insurance. All FDIC insurance coverage is in accordance with FDIC rules. See list of Banks Eligible to Receive Cash (PDF) or Bank Assigned to Receive Your Cash. For additional information please see FDIC Disclosure Document. (PDF)
- All Fidelity ATM withdrawal fees will be waived for your mySmart Cash AccountSM. In addition, your mySmart Cash AccountSM will automatically be reimbursed for all ATM fees charged by other institutions while using a Fidelity Visa® Gold Check Card linked to your mySmart Cash AccountSM at any ATM displaying the Visa®, PLUS® or STAR® logos. The reimbursement will be credited to the mySmart Cash AccountSM the same day the ATM fee is debited from the account. Please note Visa does charge a foreign transaction fee of one percent that is not waived, which will be included in the amount charged to your account. The Fidelity Visa® Gold Check Card is issued by PNC Bank, DE and administered by PFPC Trust Company, which are not affiliated with Fidelity Investments. The third party trademarks appears herein are the property of their respective owners.
- Customers earn WorldPoints rewards for net retail purchases that they can redeem for cash into a Fidelity account in 5,000 point increments, where 5,000 points equals a $75 deposit. Click here for information about the rates and fees associated with the credit card.
- Cash Back comes from the Fidelity Investment Rewards Visa Card and from the reimbursement of ATM fees charged by institutions displaying the VISA®, Plus®, or Star® logo.
