Fidelity Cash Management Account vs Charles Schwab cash management account

[Toastmaster]

Any difference between these two?  Any difference between these and a regular Bank? I can't find any difference. What are you guys experiences with either of these two institutions?

Thank you so much!

[ZehTy]

I would like to raise my hand once again for Schwab. Just like in your previous post, I will be a +1 for Schwab. 👍🏻

Dont have experience with Fidelity personally. A minor difference I do know is that Fidelity has 1% foreign transaction fees while Schwab has 0, period. 

[Toastmaster]

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@ZehTy wrote:

I would like to raise my hand once again for Schwab. Just like in your previous post, I will be a +1 for Schwab. 👍🏻

Dont have experience with Fidelity personally. A minor difference I do know is that Fidelity has 1% foreign transaction fees while Schwab has 0, period. 

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The name cash management account just makes me nervous LOL!  Like Fidelity and Charles Schwab are both technically Banks.... Maybe not the traditional consumer facing kind... But definitely Banks.  Sure they are primarily brokerage firms... But they're also Banks hahaha!

So when they say cash management, it just makes me think that those accounts can do pretty much anything that a regular checking account can do except one or two things of course which they leave out.

On a side note I do think that offering cash management accounts is smart because they want you to invest your money with them.  It appears they figure they can make more money from a person trading stocks than from nickel and diming people with ATM fees.

[Anonymous]

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@Toastmaster wrote:

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@ZehTy wrote:

I would like to raise my hand once again for Schwab. Just like in your previous post, I will be a +1 for Schwab. 👍🏻

Dont have experience with Fidelity personally. A minor difference I do know is that Fidelity has 1% foreign transaction fees while Schwab has 0, period. 

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The name cash management account just makes me nervous LOL!  Like Fidelity and Charles Schwab are both technically Banks.... Maybe not the traditional consumer facing kind... But definitely Banks.  Sure they are primarily brokerage firms... But they're also Banks hahaha!

So when they say cash management, it just makes me think that those accounts can do pretty much anything that a regular checking account can do except one or two things of course which they leave out.

On a side note I do think that offering cash management accounts is smart because they want you to invest your money with them.  It appears they figure they can make more money from a person trading stocks than from nickel and diming people with ATM fees.

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I cannot speak for the Schwab accounts, but I have used the Fidelity CMA for quite some time and I really enjoy it!

At my previous empllyer, our retirement accounts were thru Fidelity so it was very easy to access all accounts from a single screen. I added personal investing accounts, etc and can move money around easily from accounts to investments and back.

It can do everything that amy of my regular checking accounts can do, as well. Debit card, checks, transfers, wires. You select which options you want and can always add on later.

They also have nice features like no OD fees and purchases will not go through to cause overdrafts. Not everyone worries about this, but for those that do, it is a good feature.

I haven't used the account outside the country, so FTFs have been a non-issue for me, bjt may matter to you 

I felt like my DDs went in earlier, too.

[Revelate]

I've played with both over time and you really can't go wrong with either.

Schwab debit card is one of the absolute best hands down especially if you travel internationally.  I mean vs all banks too not just compared to Fidelity.

Fidelity app is my favorite of all the investment companies, I actually open it at least once a day for various news as their feed is best in class today imo.

Outside of that I've never had any issue with either of them for all that my investments at Fidelity are substantially larger than what I have at Schwab, Schwab does better on some things like non-IG bonds if you care about such things though I haven't dabbled in those waters in the last two years anyway and that might have changed.

[Toastmaster]

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@Revelate wrote:

I've played with both over time and you really can't go wrong with either.

Schwab debit card is one of the absolute best hands down especially if you travel internationally.  I mean vs all banks too not just compared to Fidelity.

Fidelity app is my favorite of all the investment companies, I actually open it at least once a day for various news as their feed is best in class today imo.

Outside of that I've never had any issue with either of them for all that my investments at Fidelity are substantially larger than what I have at Schwab, Schwab does better on some things like non-IG bonds if you care about such things though I haven't dabbled in those waters in the last two years anyway and that might have changed.

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Thank you for the thorough breakdown! I appreciate it greatly.

[craig10x]

I use to have a Fidelity Cash Management Account a few years ago but had closed it...I was consdering opening a new one...I was just curious...in the past, when you used the debit card at an atm machine i recall that while i was of course able to make a cash withdrawal...when i selected "balance inquiry" i was not able to get one in any atm machine...seemed a little strange as i never had a debit or atm card that couldn't bring up the balance at an atm....

I was just wondering if anyone knows if that is still the case or can you now do a balance inquiry at at atm?

Thanks for any feedback... 

[north1]

People like to parade Schwab around for some reason when it's just another way for them to tie you in to their ecosystem and hope you start trading. If you want to support an actual local bank that cares more about you than their bottom line, check out Needham Bank in MA. They accept customers from across the country. They offer everything that Schwab does and more, including credit cards with cashback and no FTF.

• Use any ATM worldwide for free through full ATM reimbursement
• No monthly fees
• No minimum balance required to earn interest
• Top rated mobile app
• Cash Back Rewards
• Personal Finance Manager
• All deposits insured in full
• Complimentary checks
• Pays Interest

[toothgrind3r]

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@north1 wrote:

People like to parade Schwab around for some reason when it's just another way for them to tie you in to their ecosystem and hope you start trading. If you want to support an actual local bank that cares more about you than their bottom line, check out Needham Bank in MA. They accept customers from across the country. They offer everything that Schwab does and more, including credit cards with cashback and no FTF.

• Use any ATM worldwide for free through full ATM reimbursement
• No monthly fees
• No minimum balance required to earn interest
• Top rated mobile app
• Cash Back Rewards
• Personal Finance Manager
• All deposits insured in full
• Complimentary checks
• Pays Interest

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No bank cares more about me than their bottom line.

The only person who fits that bill is my mother.