Personal Finance (Not Investing) • Money market questions for Fidelity CMA

1) For my banking purposes, is it more streamlined to open a money market within the CMA
than to open up a money market in a Fidelity brokerage outside the CMA?

I just opened my own Fidelity account, but my understanding is that if you want the benefits of a higher interest money market then buying a money market fund (SPAXX for example) within your CMA is the easiest way to go. The nice thing is that Fidelity will automatically sell portions from your money market fund to cover withdrawals as needed. So you could theoretically hold very little cash in your CMA, hold mostly money market fund and get the benefits of the ~5% return from the money market while still having the flexibility of ATM withdrawals, bill pay, etc. Also it sounds like starting around June 15th, Fidelity is going to do this automatically for CMA accounts.

This bogleheads wiki page has some good info if you haven't seen it yet:
https://www.bogleheads.org/wiki/Fidelity:_one_stop_shop

And this site talks about the upcoming change in Fidelity CMA account around June 15th:
https://thefinancebuff.com/fidelity-cas ... vings.html

Statistics: Posted by belat — Fri May 17, 2024 10:37 pm — Replies 1 — Views 140

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