Personal Finance (Not Investing) • Fidelity as a one stop shop

If you want to use a debit/ATM card or checking with a brokerage account, it goes through the same Program Banks as the CMA.

I thought the "Program Banks" just support the FDIC sweep option in CMA. A brokerage account would never have its funds deposited at such a bank, so I thought Fidelity would not share a brokerage customer's personal/sensitive information with these banks.

Fidelity debit card & check writing has nothing to do with FDIC sweep Program Banks. Fidelity brokerage accounts have no option of FDIC sweep but support optional debit card & check writing.

Exactly. That's why I thought Fidelity wouldn't share the personal information of a non-CMA brokerage customer with the program banks, even if the customer requested a debit card. (It appears that BNYM serves dual roles, however, as a PB and debit card servicer.)

Not sure what "personal/sensitive information" you are worried about sharing through the FDIC sweep, but as I stated in the part that you didn't quote, starting on June 15, 2024 you will be able to make SPAXX your core sweep option on the CMA. That will make it the exact same situation for core sweep as the brokerage account. There will be no difference.

Any personally identifiable information. It's good practice to limit sharing when possible, so as to limit one's potential for being victimized by identity theft in the event of a data breach. It may not matter that SPAXX is selectable as CMA core if FDIC is the default and if therefore a behind-the-scenes "account" is created at one or more program banks by default upon opening a CMA. Then again, who knows how Fidelity shares one's information. One's type of account (brokerage vs CMA) may not matter at all.

Statistics: Posted by zero_coupon — Thu May 30, 2024 7:30 pm — Replies 6537 — Views 1272044

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