Fidelity savings account

[Webdev]

I'm planing to park my home down payment money in fidelity savings account currently their interest rate 5.15 %. Home will be ready by November. They said I can withdraw any time without any penalty or no other fee.any one having cash in their savings account? Any pros/cons?

I have traditional IRA account with fidelity, any one put their money in their target date retirement funds? TIA

 

 

 

 

[Sizzler]

4 minutes ago, Webdev said:

I'm planing to park my home down payment money in fidelity savings account currently their interest rate 5.15 %. Home will be ready by November. They said I can withdraw any time without any penalty or no other fee.any one having cash in their savings account? Any pros/cons?

I have traditional IRA account with fidelity, any one put their money in their target date retirement funds? TIA

 

 

 

 

Enjoy. Dont worry. There won’t be penalties. If the Fed rates go down, your savings rate will go down too. You will pay taxes on the interest.  

[FilmAdmirer]

9 minutes ago, Webdev said:

I'm planing to park my home down payment money in fidelity savings account currently their interest rate 5.15 %. Home will be ready by November. They said I can withdraw any time without any penalty or no other fee.any one having cash in their savings account? Any pros/cons?

I have traditional IRA account with them, any one put their money in target retirement funds? TIA

 

 

 

Where is it showing 5.15% interest rate?

[Webdev]

19 minutes ago, FilmAdmirer said:

Where is it showing 5.15% interest rate?

I got to know from fidelity financial advisor 

[Webdev]

24 minutes ago, Sizzler said:

Enjoy. Dont worry. There won’t be penalties. If the Fed rates go down, your savings rate will go down too. You will pay taxes on the interest.  

If fed rates go down how much % we can expect the interest rate down ? Chase is offering 5% interest on 3 months CDs. I'm in dilemma in these both options considering what if savings account interest may go down 

[Sizzler]

1 hour ago, Webdev said:

If fed rates go down how much % we can expect the interest rate down ? Chase is offering 5% interest on 3 months CDs. I'm in dilemma in these both options considering what if savings account interest may go down 

Just curious how much are you thinking to keep in the Savings account ? Personally I would suggest not to stress about it. CDs will lock your capital for that period. You would have to pay little penalty to take the money early unless you take no fee CDs. 

$100K gets you $5K / Year. You are looking around 8 months till Nov. This will be around $3,300.  You need to pay interest on this and net return will be around $2500x 

[Konebhar6]

14 hours ago, FilmAdmirer said:

Where is it showing 5.15% interest rate?

I am not sure about 5.15%. I just checked Fidelity. Cash (Held in Money Market SPAXX) shows a 7 day yield of 4.96%. Traditionally it has been around this rate for last 6 months. 

[TechSri]

8 minutes ago, Konebhar6 said:

I am not sure about 5.15%. I just checked Fidelity. Cash (Held in Money Market SPAXX) shows a 7 day yield of 4.96%. Traditionally it has been around this rate for last 6 months. 

4.9% if we park uninvested cash in our brokerage account which is SPAXX. 
 

not sure what is the difference between Fidelity cash management account vs. brokerage account interms of interest and fdic. If we don’t need ATM card and checks then brokerage account is same to park uninvested cash right. But is cash management account FDIC? 
brokerage account protected by SIPC

[Konebhar6]

5 minutes ago, TechSri said:

4.9% if we park uninvested cash in our brokerage account which is SPAXX. 
 

not sure what is the difference between Fidelity cash management account vs. brokerage account interms of interest and fdic. If we don’t need ATM card and checks then brokerage account is same to park uninvested cash right. But is cash management account FDIC? 
brokerage account protected by SIPC

There is so much language around Money Market account. I could not determine if its FDIC insured or not. After reading, I am more confused.

There is an option to put your money into a fidelity bank managed account where you get less interest rates but its FDIC insured. 

[beerboy17]

4 minutes ago, Konebhar6 said:

There is so much language around Money Market account. I could not determine if its FDIC insured or not. After reading, I am more confused.

There is an option to put your money into a fidelity bank managed account where you get less interest rates but its FDIC insured. 

so SPAXX is not FDIC insured ?

[TechSri]

13 minutes ago, Konebhar6 said:

There is so much language around Money Market account. I could not determine if its FDIC insured or not. After reading, I am more confused.

There is an option to put your money into a fidelity bank managed account where you get less interest rates but its FDIC insured. 

SPAXX is too strong to break. So it is not FDIC, no need to worry about FDIC. 

SIPC protects cash value of 250k. 
 

brokerage account by default is SPAXX so uninvested cash gets interest of 4.9% as of today 

[Konebhar6]

18 minutes ago, beerboy17 said:

so SPAXX is not FDIC insured ?

Language confused ga undi bhayya. 

After some digging, I found its not FDIC Insured but it is SIPC Insured. If you want FDIC Insured, there is an option to change Core money but you get less interest rate. However SIPC protects each client upto $500k. 

[Konebhar6]

2 minutes ago, TechSri said:

SPAXX is too strong to break. So it is not FDIC, no need to worry about FDIC. 

SIPC protects cash value of 250k. 
 

brokerage account by default is SPAXX so uninvested cash gets interest of 4.9% as of today 

Yeh thats what I found as well. I have my cash parked in Fidelity SPAXX, CIT Bank & Robinhood.

[TechSri]

Just now, Konebhar6 said:

Yeh thats what I found as well. I have my cash parked in Fidelity SPAXX, CIT Bank & Robinhood.

Robinhood lo safe ena parking? Vallaku customer care call kooda levu kada. It’s safer to keep in good customer care one. 

[Konebhar6]

Just now, TechSri said:

Robinhood lo safe ena parking? Vallaku customer care call kooda levu kada. It’s safer to keep in good customer care one. 

FDIC insured ani petta. They have google backing. I have been with them for a very long time. 

There are ways to raise issues via app and they respond back quickly. I never had to do this, but a friend tracks his investments like an eagle. He drops them a message if the dividend from a stock is delayed even by a day. Robinhood does respond back.