The Best Checking Account. Ever.
It’s simple. The Fidelity Cash Management Account (CMA) is an excellent checking account option. In my opinion, it’s the best. No questions asked. But, just in case you ask “why?” here are my reasons:
Competitive interest rates: It offers a whopping 4.97% yield on cash balances as of 07/03/2024. Say that again now. Yes, an amazing 4.97% that most savings accounts can’t even provide you. That’s it, plain and simple. That makes this account one of the best in the business and there’s no additional benefits that will be as important as this competitive rate.
However, maybe it’s not enough for you to consider changing all of your bills and outstanding recurring expenses into a brand-new account.
Fair.
It is a bit of work to change EVERYTHING from one account to another. However, think about how much extra money you can make every single month. A $10,000 checking account at Bank of America/Chase/Name Your National Bank will provide you with an interest rate of 0.01% (about 15 cents per month in accrued interest) while this Fidelity CMA can provide you with 4.97% (about $40 per month in accrued interest).
You are still not sold? Wow, you really want a bargain. Alright. So how about the fact that you are going to get ALL these additional benefits:
1. No fees or minimums: The account has no monthly maintenance fees and no minimum balance requirements.
2. Extensive ATM access: Account holders can use over 1 million ATMs worldwide with no fees. Fidelity also reimburses ATM fees charged by other institutions globally. This is a phenomenal account when traveling and needing to withdraw from ATMs internationally. Again, you will never pay another ATM fee again.
3. Comprehensive banking features: The account includes a free debit card, check writing, bill pay, and mobile check deposit capabilities.
4. FDIC insurance: Cash balances are eligible for FDIC insurance up to $1.25 million through Fidelity's partner banks. Important part to note is that the SPAXX (Money Market Mutual Fund) that gives you the 4.97% current yield is NOT an FDIC insurance product. However, it's generally considered a very safe investment due to its low-risk holdings and SIPC protection. Some experts even argue that it might be theoretically safer than FDIC insurance due to its direct holdings in overnight Reverse Repo at the Federal Reserve.
5. Integration with Fidelity's investment services: The CMA can be easily linked to Fidelity brokerage accounts for seamless transfers. This means that you can invest and set up automatic transfer into one of the best investment platforms. It’s a win, win.
6. Strong mobile app: Fidelity's highly rated mobile app allows for easy account management on the go.
7. Robust customer service: Fidelity offers 24/7 phone support and various other customer service channels.
8. No overdraft fees: Fidelity doesn't charge overdraft fees, instead offering optional overdraft protection through linked accounts.
9. Award Winning: Recognized by Forbes Advisor as the #1 Cash Management Account of 2024
10. Financial Optimist Approved: I give this account a 10/10.
Here’s a few additional resources that you should read as you consider this great option:
Please let me know when you start earning one of the best rates ever. Would love to celebrate with you.
