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Fidelity extra perks

edited May 21 in Off-Topic
https://www.investmentnews.com/fidelity-investments-perks-wealth-management-clients-193142

Hy cd
2% cash back
Good rates for cars homes loans
Free trading

What else can go wrong w fidelity

Comments

  • beebee
    edited May 21
    Best perk I received involved transfer bonus to TD Ameritrade and Merrill Edge...both range in amount depending on amount transferred.

    TD:
    https://td.com/us/en/investing/td-ameritrade/

    Merrill Edge and others:
    https://brokerage-review.com/article/ira-promotions.aspx
  • Fidelity's page on Fidelity Rewards+℠.
    https://rewards.fidelity.com/offers/rewards/rewards-wealth

    It requires at least $250K combined in their wealth management programs and/or SMA strategies each having fees based on AUM.

    Fidelity is also offering $1,000 if you transfer $1M+ in assets to them. Something you have to ask for. (The $1M seems to be the lowest amount for which they are currently offering a bonus.)

    With respect to Merrill, they'll give you a 50% additional bonus if you are, or become, a BofA preferred rewards customer. That needs a combined BofA balance of at least $20K, and requires that you maintain a (free) BofA checking account.
    https://www.merrilledge.com/offers/900offer

  • edited May 21
    johnN said:

    https://www.investmentnews.com/fidelity-investments-perks-wealth-management-clients-193142

    Hy cd
    2% cash back
    Good rates for cars homes loans
    Free trading

    What else can go wrong w fidelity


    @johnN

    \\\ Good rates for cars homes loans

    What does this mean? I see normal sound advice about handling, but nothing beyond that. Do you know of Fido lending capability or offerings ? Did I miss something?


  • edited May 22

    https://www.fidelity.com/viewpoints/personal-finance/picking-mortgage

    Hi sir thought saw something posted previously when went to Fidelity w mother regarding mortgage couple of years ago. I think you can potentially get a mortgage with an affiliate bank attached to fidelity.

    They probably function 80% as a bank. Has almost everything but if you want and investing and banking at one firm probably best to do it with BOA/Merrill edge combinations

    Maybe I am wrong regarding mortgage




  • A brokerage doesn't have to partner with a bank. It can also partner with a "nonbank".
    These firms, which both originate mortgages and collect loan payments, have grown after the 2008 housing crisis, as big banks backed away from what was perceived as a risky and expensive business. Today, nonbank mortgage firms, such as Quicken Loans, Freedom Mortgage and Mr. Cooper (formerly Nationstar), account for nearly 60 percent of all mortgages issued in the United States and service over half of the nation’s outstanding mortgages.
    https://www.nytimes.com/2020/04/20/us/politics/coronavirus-housing-mortgages.html
    https://www.thesimpledollar.com/loans/home/quicken-loans-nonbank-mortgages/

    Schwab partners with Quicken Loans, and shaves one to three quarters of a percent off the mortgage rates depending upon your account size at Schwab.
    https://www.schwab.com/public/schwab/banking_lending/todays_mortgage_rates

    Currently, all I can find at BofA's website on mortgage benefits is a reduction of origination fees by a few hundred bucks based on account size. Though it may offer one to four eighths of a percent discount in some markets according to Barron's (no subscription required for link).
    https://www.bankofamerica.com/preferred-rewards/details/
    https://www.barrons.com/articles/merrill-lynch-wields-discounted-mortgages-51552447530
  • We have some seriously low rates at BoA for mortgage (3.75%; this could improved w effort) and heloc (2.42%, can redo to 2.17% teaser for a year if I press for it and agree to use). The former rate from years ago was just for refinancing through them a few times over the years and the latter was based on favored-nation status after moving some assets from Fido.

    I was just interested in whether Fido did loans other than margin.
  • edited May 22
    Called fidelity they says the have mortgage loans business loans/cars loans but need your 401k funds to hedge/collateral, rates 2.5% [? Similar to margins but rates maybe little less]


    Maybe best to use local credit unions


    Penfed usually have best rates around if you are interested
    We used it for previous mortgage and new cought car in 2013


    Penfed

    https://www.hustlermoneyblog.com/penfed-credit-union-membership/#PenFed_Credit_Union_Membership
  • johnN said:

    Called fidelity they says the have mortgage loans business loans/cars loans but need your 401k funds to hedge/collateral

    Fidelity has misinformed you. A 401(k) can never be used as collateral. Think about it - the same reason why it is protected from creditors (ERISA anti-alienation clause) also means that a creditor can't grab it if you default on a loan (i.e. it's useless as collateral).

    IRS (listing some requirements for a plan, including a 401k plan, to be qualified):
    other than for participant loans permitted under the terms of your plan, no benefits under the plan [may be] used as collateral for a loan or otherwise assigned or alienated.
    https://www.irs.gov/retirement-plans/a-guide-to-common-qualified-plan-requirements#15

    So you can borrow against your plan, but you can't pledge its assets as collateral. The CARES Act increased the legal limits from $50K/50% of you balance to $100K/100% of your balance.

  • @-MSF ..Thx for clarifications regards
  • @johnN, there is no way they have mortgage rates at 2.5% Are you sure you talked to someone at Fidelity?
  • edited May 22
    @_MikeM. Hi Sir, Yes I called the rep earlier today at fidelity. They says around 2.5% loans w/ attached to 401k but I only talked to Fidelity Rep 800number, not 401K department so they may have false-information. You can call to find out.

    Think my friend got a loan 4 wks ago refinance house private banks 2.6% so rates could be slightly lowered now. anything is possible since not many folks are looking for loans and many underwater.

    I remember in Early 2009 housing crisis, we went to local credit unions after our previous CDs mature, they gave us ~ 2.5% CDs ytm for additional 12 months. Others were only giving ~1.5% at that time.

    BOA have 2.6% 15 yr fixed today

    bankrates.com may have many special loans similar rates with good credit standings

    regards.
  • You may be right John, I apologize. Bankrate.com does show some banks down to 2.5% - 2.6% for 10-15 year fixed or ARMs.

  • MikeM said:

    You may be right John, I apologize. Bankrate.com does show some banks down to 2.5% - 2.6% for 10-15 year fixed or ARMs.

    was thinking of paying off my <$100k mortgage under 4% w heloc at a bit over 2% (for a year, then back to slightly higher, likely ~2.4%) ... but tried to divine the low-rate future.

    heloc is for 10y, though, and mortgage is like 22y remaining, past my lifetime, and if I could refi at 40y I would.

    All BoA, who got extremely aggressive ratewise a few years ago. I switched from gov CU through DoD employer for just that reason.
  • edited May 23
    Another fake news from Fidelity.
    Please use our management services at 0.5% to 1.5% and we will give you another 0.25% on your purchases.
    No thanks:

    After more than 20 years at Fidelity I transferred most of my money to Schwab.
    We discussed Fidelity several times before, I don't see anything special for me to stay at Fidelity vs Schwab. I still have both.

    I got over $3500 cash reward at Schwab in the last 3 years. If you look at Schwab now you will not see it but if you ask enough reps you will get it. Just several weeks ago I got another $300 after I transferred just over $100K

    Fidelity biggest perk IMO is their credit card 2% cash back but you can get it elsewhere. Schwab doesn't offer it.

    Just in the last several weeks I tried to trade FAGIX once in less than 30 days, as expected I got a warning from Fidelity. I have been trading Schwab funds in/out a lot more, especially SWNTX (Muni) which I use as my "cash sub" when I trade in/out of funds and I have small leftovers. I never got any warning.

    The rest was discussed already in this thread

    Fidelity is a follower not a leader when it comes to lower fees and special offers.
  • What other free cards are 2% on everything? Not disputing, want to know.

    Schwab permits no-penalty short-term mfund trading?
  • msf
    edited May 23
    Citibank Double Cash sort of pays 2%, but there are two catches. It credits only 1% up front, and credits the other 1% when you pay the charge. The other catch, according to scuttlebutt, is that if you make that payment before you get the bill (i.e. before the billing cycle closes), then you won't get the second 1% back.

    BofA's Travel Rewards card gives a 1.5% credit that can be used to pay travel charges on your bill. With $50K at Merrill, you get a 50% boost, bringing the credit up to 2.25% on everything. With $100K, that goes up to 2.625% on everything.

    Fidelity allows no-penalty short-term mfund trading, just not an unlimited amount of it. On Fidelity funds (excluding MMFs), Fidelity will restrict trading if you execute two round trips of a single Fidelity fund w/i 90 days, or four round trips of Fidelity funds generally within a year. This is per account, so you won't get dinged for making parallel trades in multiple accounts. Which would appear to be a way to circumvent the limitation if one were so inclined.
    http://personal.fidelity.com/products/trading/Trading_Platforms_Tools/excessive_trading_policies.shtml

    You will note that with one trade, FD1000 got reminder warning. The trade was not blocked, there was no monetary penalty, and no future trades were as yet restricted.

    Of course there are fees for trading in and out of NTF funds, but that's not what FD1000 was describing. (The short term trading fee is different from the excessive trading restriction.) Fidelity imposes this fee if you sell an NTF fund within 60 days of purchase. Schwab clients have to wait 90 days to avoid the fee.
  • Costco Citi Visa card offers 2% on Costco purchases...4% on gas... 3% on restaurants and travel costs...1% on other purchases. That card is also my Business Executive Costco membership card which charges $120, allows two cardholders and also returns 2% of your annual purchases. Works well for my needs.
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