Fidelity is placing holds on some Cash Management Account Debit Cards, restricting access to funds transferred via check or EFT for up to 20 days as a measure to combat fraud. Many of us appreciate this account for its ATM reimbursements while traveling, but if you expect to withdraw your funds within a certain timeframe, that may not be possible. While I understand that Fidelity is trying to address fraud, their approach is too broad and negatively impacts their customers.
Additionally, even if your investment accounts are not subject to withdrawal holds, would you trust a company that fails to communicate this issue to its clients? We only learn about these restrictions through the media or when we attempt to withdraw our money.
If you initiate a pull from Fidelity’s side, it takes 16 business days to settle, while wire transfers process smoothly. Many people wouldn’t be frustrated if Fidelity had simply communicated their new policy upfront. It’s been three weeks since the change, and clients are only finding out once they notice their balance is unavailable.
I need to look for a new account with a higher interest rate if this is the reason the money I transferred into my emergency savings a week and a half ago still hasn’t posted to my account as available for withdrawal not like I need to. Its 3% interest rate was the reason I opened two years ago.
You would expect that while implementing these holds, fidelity may have some discretion.
A two-week hold was placed on a brand-new account that deposited a $10,000 cheque via mobile deposit.
If a customer deposits a $10,000 check over a mobile device, it is unlikely that they are attempting to commit check fraud. If they succeed, Fidelity will still have your collateral. The customer has had the account for ten years, and they have an IRA or Roth IRA with $100,000 in it and another $25,000 sitting in their cash sweep.
The same thing happened to me while I was in Taiwan. I tried to transfer money into my CMA account to use the debit card for withdrawing local currency (New Taiwan Dollar), but I got locked out and didn’t have any cash to exchange at the airport (rookie mistake, I know). Ended up having to take a cash advance on my credit card with a 30% fee just to get cash. Thankfully, I only needed about $50 ($65 after fees) for my layover. Lesson learned—don’t keep all your eggs in one basket!
The greatest travel card to Asia is the Capital One Debit. It uses a master card, which has a little higher currency conversion rate than Visa, and has no foreign exchange or transaction fees.
I never put all of my eggs in one basket because of this. People seek to simplify by using one institution for everything, yet depending on the institution, having just one account instead of many could get you screwed. I have enough money spread across several institutions to cover myself for months. At one, something occurs, but I’m not screwed.
Well, that’s unfortunate. Does this impact those with brokerage accounts? I keep my emergency fund in a brokerage account to hold short-term Treasuries and frequently transfer large amounts in and out to pay a Fidelity card. If this affects me, I might have far less immediate access to funds than I realize.
with a 30% fee just to get cash. Thankfully, I only needed about $50 ($65 after fees) for my layover. Lesson learned—don’t keep all your eggs in one basket! 