@Snook_on_the_Line wrote:
Title says it all.
those who have a cma from fidelity please explain it to me.
What exactly is a cma account from fidelity?
is it a checking account?
are your funds always available?
are there any hidden fees?
Is it safe?
basically the only thing I'd use it for, besides keeping just enough cash there to keep it open, is pushing funds to new checking accounts for SUBs.
The Fidelity Investments CMA Cash Account does offer the lower interest rate 2.2% (or whatever market driven) and obtains its safety by automatically transfering the funds to FDIC Insured Banks at the lower rate. When you call for funds from the CMA Cash Account, Fidelity transfers the funds back from the FDIC insured banks (they do have a list of many banks they use for safety up to $250,000 per account) and cover the client's activities.
As has been said in this posting, the higher rate options for the Fidelity CMA Cash accounts are not covered by the FDIC. Further, Fidelity gives you a bank like approach utilizing other financials to provide some of the servicing (this to can be found in the fine print). They use multiple providers. Mellon Bank and others work the Debit Cards along with UMB who actually operates the checking options. This is how Fidelity Investments gives a client a full rich experience without having its own bank charter.
An added feature/service is their Fidelity Rewards Visa Signature Account which is part of the Elon Cards and can be attached to the Fidelity Investment line of accounts. Elon tends to offer larger credit lines (Flexible Spending Account) and has many good benefits that are more than most Elon Cards offer (see their ads).
