Fidelity Cash Management Account

Finance
21

I just selected FZDXX as the sweep in my HSA a few days ago.

1 Like
22

If I have a Fidelity Cash Management Account along w/ other Fidelity accounts (e.g., a brokerage account, retirement accounts, HSA, etc) and turn off the Cash Management Account’s overdraft protection, can a fraudster that gains access to the Cash Management Account (e.g., steals the debit card, takes over my PayPal/Venmo accounts that are linked to the Cash Management Account, knows the ACH routing & account numbers etc) still drain my other Fidelity Accounts? Or will the fraudster be isolated to only the Cash Management Account?

Per this Bogleheads forum post it looks like I’ll be protected and any fraud will be “isolated” to just the Cash Management Account. I would like to get confirmation from others since maybe the poster is/was wrong, there are new attack vectors since 2019, etc.

PS - I’m using the terms “fraudster”/“fraud” loosely here. I’d want protection even in more innocent situations like a utility company withdrawing a large amount due to a billing error.

2 Likes
23

To answer my own question: I talked to Fidelity and they confirmed that w/ Cash Management Account’s overdraft protection turned off, that a fraudster that gains access to the Cash Management Account will be limited to only what’s in the Cash Management Account.

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24

This deal disappeared for a bit, was replaced w/ a $150 bonus for the holidays, disappeared again, and now is back (for $100 bonus) at: The Fidelity Starter Pack℠ | Get an investing account, spending account, & education

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25

A couple of updates here.

I initiated an ACH pull for the first time in a while yesterday, and I was pleasantly surprised to see the full amount credited and available same as cash this morning. This was from Alliant with the intention of establishing a position in FZDXX. It was a $100k transfer, so not small potatoes, either. The debit appeared in my Alliant ledger yesterday, a few hours after submitting the transfer, so it appears that they have some kind of same-day ACH going on.

I also forgot to confirm earlier - there was no international ATM fee applied when I was traveling late last year. The exchange rate appeared to be as good as I was getting on Visa-branded credit cards for transactions on the same day.

All in all, I am very happy with this account for day-to-day spending as well as an easy way to manage investments, buy T-Bills, etc.

4 Likes
26

I also have an account and I’m pleased with it. Not mentioned on this thread are the local offices that are convenient for depositing checks and other paper transactions.

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