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I Tried the ‘Joy’ App and It Totally Changed the Way I Think About Spending

Editorial Note: The editorial content on this page is not provided or commissioned by any financial institution. Any opinions, analyses, reviews, statements or recommendations expressed in this article are those of the author’s alone, and may not have been reviewed, approved or otherwise endorsed by any of these entities prior to publication.

What makes you happy? In the final quarter of 2017, amid growing interest in a growing field of a study called behavioral economics, financial services company Happy Money — formerly known as Payoff — released the Joy app to help you answer that question. At least, when it comes to your spending decisions.

What is Joy?

Joy is a personal finance app that uses psychology and financial behavior to help change the way you think about, spend and save money. The Costa Mesa, Calif.-based company behind Joy claims it will help “drive awareness of how spending is connected to happiness, and to encourage people to build savings.” In other words, it may help you find the joy in handling your finances.

Joy has joined the ranks of many, many other fintech apps designed to help you keep track of your money. The app was released by Happy Money in November 2017 as one of its three core products: Joy (the app), Payoff (the loan) and soon-to-be-released Happy Money Score (a Happy Money rating).

“I think it really resonates for people. People care about happiness and want to understand how to use their money to be more happy,” said Elizabeth Dunn, Ph.D., Joy’s scientific advisor and co-author of “Happy Money: The Science of Smarter Spending.”

In the book, she and researcher Michael Norton lay out the following five research-based principles on how to find financial happiness:

  1. Buy experiences — People gain more happiness from buying experiences than material things.
  2. Invest in others — People seem to derive more happiness on average when they use their money to benefit others, rather than themselves.
  3. Buy now, consume later — People derive happiness when they pay in advance for something they will consume later because the brain feels like it’s “free.”
  4. Make it a treat — People gain more happiness when they spend money on a “treat.”
  5. Buy time — People derive happiness when they buy time. For example, buying their way out of their a task, like cleaning the bathroom.

After finding out how handling your finances affects your well-being, Happy Money’s team of psychologists, data scientists, neuroscientists, tech experts and financial professionals came together to create the Joy App to give people a tool to track how their spending makes them feel.

Joy has two core functions:

  1. Rate your spending — After you connect your bank accounts and credit cards, the app has you rate each transaction you’ve made with a happy face or sad face.
  2. Save money with Joy Savings — Each day you open the app, you’ll be reminded to save an amount of money that Joy’s algorithm has found “safe” for you to save — called a Daily Save — to an FDIC-insured Joy Savings account.

Rating your purchases is intended to help you better recognize what kinds of purchases bring you happiness, so you can focus on making more of those and fewer purchases you’d rate with a sad face. Over time, theoretically, you’d develop a habit of making more spending decisions that make you happy as a result.

The free savings account is supposed to help you make a habit out of saving money. The app prompts you daily to save money, but doesn’t save the money for you automatically.

Dunn says that’s because you create a different association with saving money when something happens automatically than when you are involved in making it happen.

“People figure out what they themselves are like in part by observing their own behavior,” said Dunn. “It seems very plausible to me that if you engage in this habit, you will start to see yourself as the kind of person who cares about and is capable of saving money.”

The MagnifyMoney Joy review

I’m personally intrigued by ideas about how human psychology tends to influence our financial decisions.

I’m also part of the camp that isn’t always thrilled to glance back at their recent spending decisions. You know the feeling: you make a few ‘guilty’ purchases then just avoid checking up on your checking account balance or reviewing your recent transactions (which one should do because it’s sort of key to properly managing one’s finances).

That being said, I was curious about what many reading this are probably wondering now: How exactly will downloading yet another app to track my spending habits make me any happier about my spending? Or, at the very least, motivated enough to keep tracking them after a spending binge.

So, I decided to try out Joy for myself to see if the app would do what it claims.
The following is my account of how the Joy app — featuring very bright colors and a chatty robot — forced me to get face-to-face with my spending habits and and decide if they (really) made me “happy,” or, um …not so happy. Unfortunately, the app didn’t really help me save much money, but we’ll get to that later on.

What I liked about Joy:

It forces you to review your spending
I liked that the app asked me to rate whether or not my recent transactions were “happy” or “sad” spends each time I opened it up. After a few days of doing this, it started to affect my real-time spending decisions. Since I knew I’d have to decide how I felt about my spending decisions afterward, the thought began to cross my mind before I swiped my cards. For example, since I know I made a “sad” spend last time I ordered food at a restaurant I knew I couldn’t finish and ultimately wasted, I thought about my ability to actually eat the food I planned to order rather than what my tummy was saying when placing my brunch order.

Set reminders to review your spends and check your Joy Savings
I thought it was nice to be able to set a reminder prompting me at the same time each day to go over my spends and make a daily save. I set a reminder for a time at the end of the day when I’m usually relaxing, so I’d have a few minutes to think about how each of my transactions made me feel.

Since the daily safe-to-save amount can differ from day to day and isn’t automatically transferred, it was helpful for me to set a reminder to check on my Joy Savings account and decide whether or not to transfer the suggested amount.

See changes over time
A cool feature of the app is its ability to show you how you’ve been doing over time. I just had to ask my money coach a question to see details like how much I’ve spent this month versus last month, how my happy spends compare with sad spends or how I’m doing with my savings habits compared with other people with my money personality, among other stats.

Savings aren’t automatic
Because the savings aren’t automatic, there was no danger of using funds I thought I had in my checking account and accidentally overdrafting. I only keep a low balance in my main checking account and make transfers if I need to, so it’s especially important to me to avoid overdraft and NSF fees. If you keep a low balance and use an app that automatically transfers money for you, you may be thrown off if you don’t stay on top of what’s going in and out of your account.

Saving out of sight
The Joy Savings account is separate from my checking and saving accounts, so I don’t see how much money is in the account when I check my bank balances. To me, it’s like that money doesn’t even exist, so it’s a nice surprise when I do see the balance in my Joy Savings account. Because the daily save amount is a small amount that’s “safe to save,” I don’t miss the money in my main checking account at all — I don’t even notice the money’s gone.

Saving does feel good
It feels great to hit “save” each time I check the app. I have all of my other saving automated, so I don’t have to take action to save the money and I almost never see the funds. By making saving a daily action, I feel like the kind of person who actively saves money, instead of the kind of person who has to try really, really hard not to spend — or even look at — her savings.

I’m saving more money
I thought I was already saving as much as I reasonably could since I have a budget and make my saving automatic. So I didn’t expect the algorithm to calculate much of anything. I keep less than $100 in a main spending account. So it often calculated daily saves of $2 or less. Having to save money from my spending account was, for me, just extra saving, but it showed me I could actually collect a little bit more if I tried.

What I didn’t like about Joy:

Unclear how to utilize my ‘money personality’
I enjoyed taking the personality quiz, but outside of knowing I was a “free spirit” and setting me up with an AI robot to chat with, I don’t get much of any sense about how my money personality applied to my use of the app’s spending and saving features. For example, my designated personality type didn’t seem to affect the amount of money the algorithm calculated for me to save or how my happy and sad spends were split up, so while it’s nice to know, I didn’t see much opportunity to apply the knowledge within the app.

The app is only available on iOS
As of this writing, the Joy app is only available on iOS, so only those with Apple products are able to download and use the app. That was fine news for me since I have an iPhone, but anyone who doesn’t have an iPhone or iPad isn’t able to try out Joy.

My experience with customer service
I had a negative experience with customer service when I first tried to use Joy Savings. I misunderstood the instructions and accidentally linked the wrong account to my Joy Savings account. I connected it with an emergency savings account instead of my main checking account. I thought I’d easily be able to change the linked account within the app. I was wrong.

I searched the app and I asked my money coach, but didn’t see anything related to unlinking the account. So I went online to search for a solution and found out I’d have to email humans@findjoy.com for help. I sent an email asking for assistance on Dec. 19 and got a reply from a customer service representative saying they’d reach out to an engineer and let me know when they were ready to re-link my new account. So, I waited for an email.

When I didn’t receive any correspondence by Dec. 26, I emailed the same representative back. Nothing. I emailed again, including the original humans@findjoy.com, asking, “Any word yet on fixing my Joy Savings account?” Again, I didn’t get a reply back. I sent another email nearly a month after I had sent the initial request. At this point, the wrong account was still linked to my Joy Savings account and I still had no way of fixing the issue on my own.

By mid-January, I was in the middle of writing this review, so I was able to enlist the help of the company’s press representatives in resolving my Joy Savings mistake. When I informed them of the difficulty I was having with customer service, they acted promptly and were able to unlink the wrong account within a couple of hours. I linked the correct account and finally got to start making a daily save on Jan. 19 … a full month after I initially asked for help.

Ironically, I finally got an email back from the service representative who was supposed to help me, whom I emailed four times by now — on Jan. 22. He said my conversation had been lost in the queue. I sent a final email letting the representative know my issue had already been addressed, but thanking him for working on it. I hope he gets it.

Cannot change Joy Savings account in app
As of this writing, you are unable to change the account linked to your Joy Savings from within the app. A company spokesperson said the Joy app is still in its soft launch stage, and the company will soon introduce new features like having more control over connected accounts and settings.

Who the App is Best For

If you are new to personal finance, it may benefit you to use Joy to get a sense of your spending habits. The Joy app seems to be best for those who:

  • Aren’t into budgeting
  • Want to develop a habit of reviewing their transactions
  • Want to be more conscious of their spending habits and/or
  • Have a difficult time finding money to save in their budget

How to use the Joy app:

Create your account

Before you can use Joy, you’ll need to create an account using your phone number. The app will send a specific code to your phone, which you’ll need to enter to start using Joy. You should see a gif and a message welcoming you to Joy pop up on the screen for a few seconds.

Sign up for Joy.
When the gif disappears, you’ll begin a text-bubble chat with Joy. You’ll be confronted with a questionnaire designed as a text-bubble conversation.

You’ll then be asked for basic sign-up information like your name, annual income and whether you rent or own where you live. You’ll be able to respond to most of the questions with pre-made responses, almost like a multiple-choice test.

Get your money personality

Next, Joy will tell you about yourself. Joy will ask you five questions and use the responses you give to help you discover your “money personality.” There are a 12 different money personalities in total. Chris Courtney, Ph.D, Happy Money’s senior director of science, says your personality is directly responsible for how you spend your money. You can continue on to the questions, or, if you’re curious, ask Joy why it needs to know that.

Knowing your money personality upfront is also supposed to help personalize your experience with the app. Joy’s creators claim this helps you feel less judgmental toward the process compared with other existing budgeting apps that employ a cookie-cutter approach to their users’ finances.

“By taking the time to get to know each person and giving them some information and context regarding their own personality, it kind of expresses to someone we don’t expect everyone to be the same,” said Dunn.

Joy says I’m a free spirit with my finances. In my opinion, that’s fairly accurate. I’m almost never on time (just ask my editor) and I do very much hate categorizing my budget. I don’t last long with budgeting apps that make you have spending categories because my habits don’t always fall into easy-to-estimate budgeting groups. I’d much rather pay my bills and allocate my savings to end up with chunk of money I know is safe to spend, which is why I already have my bills and saving automated. Well done, science.

Get your money coach

Having your money personality also helps Joy set you up with an artificially intelligent robot dubbed your personalized money coach. You’ll meet your money coach next. There are four coaches in total — Dash, Gem, Ava and Atom. My coach is Gem.

Your money coach’s interaction with you depends heavily on your money personality. Courtney says to think of the coach like a personal trainer at a gym.

“Some people will respond well to an intense and challenging approach, while others will want small goals with a lot of positive affirmation,” said Courtney.

Everything about the way your coach interacts with you — presenting goals, celebrating victories, encouraging you to do better, punctuation, emojis, and slang — stems from your money personality. It’s supposed to make you feel more comfortable when dealing with a financial advisor, as opposed to being judged.

“People feel happier when they are with others who are similar to themselves,” said Dunn. “It creates a sense of well-being and comfort when you are interacting with people who speak like you do.”

You can start a chat with your coach whenever you want. The topics and responses are somewhat limited, but give you all the information you need to use the app. Your coach can give you stats about how you are doing with your spending or saving, for example, or how others, such as those with your money personality, are doing.

 

Add your credit cards and bank accounts

Of course, you’ll need to connect your bank accounts and credit cards to Joy so it can track your finances. You’ll see the option to link spending accounts on the spending side of the Joy app. You can add bank accounts and your credit cards. The app will use the linked accounts to pull up transactions for you to rate.

I was able to link all of my accounts easily and the app was able to bring up my recent transactions within a few minutes.

Review your recent spends.

Once your accounts are all set up, you can begin rating your spends. You’ll be asked to rate each of your recent transactions with either a happy, smiling face or a sad, frowning face in response to “how do you feel about your spends?” You’ll rate transactions in batches of ten, then, if there are more to be rated, you can continue until you’re through with your recent transactions.

Don’t overthink this part. I did, so I’m warning you. Take the $13 I spent at Zaxby’s fast-food restaurant the other day, for example. I felt conflicted when I had to rate the transaction because I thought, “Um … both?”

I was visiting my hometown in Georgia, and I really, really missed eating Zaxby’s since I live in New York now and there is no Zaxby’s up here. The food tasted magical. But, I’ve become a bit more concerned with my health since I was in college, eating Zaxby’s every week so I did sort of feel bad (physically and emotionally) after eating fast food.

So, what would I put? A happy face because the Wings-N-Things meal I’d ordered was tasty and satisfying? Or a sad face because I spent money on something that wasn’t a very healthy eating or spending choice (since my mom had “free” food made for me at home). Honestly, I didn’t need to spend the money. But, it’d been nearly two full years since I’d had Zaxby’s! I couldn’t decide. I was frustrated there weren’t more faces. Maybe a [shrug] emoji?

Dunn says the app only gives you two choices on purpose. It makes it easier for you, with everything going on in your daily life, to extract useful information.

“If every time you spent $15 you had to reflect on 17 different aspects of the emotional experience, you wouldn’t do it,” said Dunn. “This is kind of asking people to go, ‘okay what’s your overall ledger?’ You can suck up a lot of the variability in a wide range of emotions with the happy face and sad face.”

I eventually rated the spend “happy.” But, now that I know spending money on food that’s not great for my health makes me feel bad, I avoid it like the plague.

Set up your Joy Savings Account.

When your accounts are all linked, you can set up your Joy Savings account. You’ll chat with your coach to get an explanation of how Joy Savings works.

First, you’ll link an account to fund your savings account. The algorithm will use to calculate an amount you’re able to save each day, so it should be the checking account you use for most of your spending.

Each day you open Joy Savings, you should see your “Daily Save” and the option to go ahead and transfer the money to your Joy Savings account, or choose to pass on saving today. Whenever you decide you want your money, you can request to transfer the amount you’d like from your Joy Savings account to your checking account. The deposit should clear within 1 to 3 business days.

Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.

Brittney Laryea
Brittney Laryea |

Brittney Laryea is a writer at MagnifyMoney. You can email Brittney at brittney@magnifymoney.com

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Reviews

Review of Bluebird Prepaid Debit Card

Editorial Note: The editorial content on this page is not provided or commissioned by any financial institution. Any opinions, analyses, reviews, statements or recommendations expressed in this article are those of the author’s alone, and may not have been reviewed, approved or otherwise endorsed by any of these entities prior to publication.

woman using ATM
Source: Getty Images

Bluebird card features

The Bluebird prepaid debit card functions as a prepaid debit card and a bank — well, if neither charged fees for holding your money. Bluebird sings a different tune, with no minimum balance requirement, no inactivity or inquiry fees, no monthly or annual fees and no overdraft fees, all of which can be common in the prepaid-card world.

Developed in partnership with Walmart, the Bluebird card is a financial product offering more benefits than a traditional prepaid debit card. Users can wield Bluebird like a credit card since it works at almost any location worldwide accepting American Express. Bluebirders also receive extra traditional cardholder benefits, such as fraud protection, roadside assistance and Amex Offers, which provides deals and discounts at a variety of restaurants, shops and other merchants.

The Bluebird prepaid debit card also lowers barriers to traditional bank checking account features that make life easier, such as bill pay, direct deposit and a variety of no- or low-cost ways to add funds. It’s a hybrid financial creature, offering the ease and low expenses of an online bank and the reassurance of physical plastic and paper when it’s needed.

Among the features:

  • Direct deposit. Bluebird account holders can set up direct deposit online or with the Bluebird app, but a form must be printed out for your employer, so access to a printer is necessary. Drawing on funds before payday is available if your employer deposits funds early. But, in general, direct deposit funds are available as soon as the money arrives in the account, which could be up to two days before payday. It can take up to two payday cycles for direct deposit to kick in. Direct deposit can also be set up for federal payments, such as Social Security, a Veterans Affairs pension, a tax refund or a paycheck for a federal government employee.
  • Adding money to your account. There are a variety of ways to add money to a Bluebird account. Users can add cash via direct deposit, linking an existing debit card or bank account, adding cash or cashing a check at a Walmart register (up to $1,999) or via mobile check capture.
  • Mobile check deposit. With the Bluebird mobile app’s mobile check capture, users can deposit checks in minutes using their phone’s camera. But you won’t get the cash you’ve deposited for up to 10 days while the check clears. You can, however, pay a fee to have the money instantly available: 1% on payroll or government checks, or 5% on other checks. There’s a $5 minimum fee for this service.
  • ATM access. Bluebird encourages users to use a Walmart ATM or the MoneyPass network of ATMs found in thousands of locations for fee-free withdrawals. The Bluebird app can help users locate a nearby MoneyPass ATM.
  • Bill pay. Users can pay rent or utility bills with just a click — on the website or in the app — to be delivered within two business days. (If electronically, it takes longer to send a check by mail). Although there’s no way to set up a recurring payment, you can schedule bill reminders. Bluebird offers a Bill Pay Guarantee as long as you pay your bill six business days in advance of the payment deadline.
  • Checks. Yes, Bluebird account holders can even get 40 personalized physical checks for $19.95, plus shipping. But using these checks involves an extra step that traditional banks don’t require: Users must log on to the Bluebird system and personally pre-authorize the check, which in effect, holds the money required to cash the check. On the upside, there is no possibility of overdraft fees.
  • SetAside Account feature. This allows cardholders to save money for a specific goal (a vacation or an anniversary gift, perhaps) by essentially creating another account. Unlike a traditional savings account or money market account, no interest is paid on money saved in SetAside.
  • Family accounts. Parents of teens may be intrigued by Bluebird’s family account option, which allows you to create up to four subaccounts (and cards) for other people — age 13 and older — and set permissions on those accounts. These subaccount users can pay with their Bluebird card at any merchant accepting American Express, withdraw cash (with permission) and request money from the primary Bluebird member. But they can’t pay bills, add funds or cash checks — or create their own accounts. So there won’t be any surprising, bank-breaking Fortnite purchases.
  • Money transfer. Skip the wire expenses. The Bluebird card allows users to send cash from their account to users for pickup at a Walmart store. As well, Bluebird offers user-to-user online send-and-request cash capabilities, but both must be Bluebird users.
  • Account management tools. Bluebird allows users to set up fee-free alerts for low balance, added money, bill pay and fraud, and also has a text-enabled system to get your current balance, last few transactions and SetAside balance. The app also makes it easy to check in on current funds.
  • Other benefits include 24-hour roadside assistance dispatch, purchase protection and the Global Assist Hotline for travelers needing urgent assistance.

Bluebird fees and fine print

There can be sticking points around pre-authorizations, or the amount a merchant pre-authorizes and holds for payment — even if you didn’t actually spend as much as you were pre-authorized for. This, in turn, can lead to extra funds being held hostage (although not maliciously). For this reason, Bluebird advises cardholders to pay gas station attendants inside, not at the pump, and discuss pre-authorizations with other merchants likely to charge a bit extra, such as hotels, cruise lines and rental car agencies.

A deposit limit of $100,000 a year is set for all Bluebird accounts — for linked family members as well. Only $10,000 a month can be added by mobile check deposit. The ceiling for spending, withdrawal and other expenses (including merchants, bills and online transactions) is $15,000 a month.

Wondering about whether your cash is FDIC insured, as with a traditional bank? Money added to registered Bluebird accounts is placed into a custodial account at a FDIC-insured bank. Funds should be insured by the FDIC (up to $250,000, which is more than the Bluebird deposit-per-year limit). But it does remind users that American Express Travel Related Services Co. Inc. isn’t a bank, so there’s a risk of financial complications. As well, funds placed on temporary cards are not eligible for FDIC insurance.

Additionally, American Express isn’t accepted at merchants as widely as some other card issuers. And because Bluebird isn’t a traditional credit card (neither investigated by nor reported to credit bureaus), it will not help build credit.

Bluebird Fees
Activation fee$0 if signing up online;otherwise, $5 to purchase a starter kit at Walmart, which offers a temporary card.
Reload fee$0
Check deposit feeNo charge if you’re willing to wait 10 days;
1% or 5% of a check for “Money in Minutes”
ATM feesWithdrawal at MoneyPass ATMs, $0;
withdrawal at non-MoneyPass ATMs, $2.50
Card replacement fee$0
Money transfer to Walmart store in U.S. or Puerto RicoUp to $50: $4
$50.01-$1,000: $8
$1,000.01-$2,500: $16

Using the Bluebird mobile app

Source: iTunes

The app is available for iPhone and Android devices, and offers some of banking’s most popular features, including the ability to view your balance and detailed information about individual transactions. Users can cash checks, pay bills, add money from other debit cards, send money to family account holders (e.g., your teens) and locate MoneyPass ATMs, which don’t charge fees. Users can also transfer money to their SetAside (savings-adjacent) account.

The app has a 3.2-out-of-5 rating on iTunes and a 4.2-out-of-5 rating on Google Play. Some users complain about iPhone X compatibility. The app also lacks budgeting and savings-pattern features that select banking apps are now offering. To find the Amex Offers that come with a Bluebird card, you’ll also need to download the Amex app.

Opening a Bluebird account

Applicants can sign up for Bluebird in a number of ways. Users can go to Bluebird.com to register for an account, or download and use the Bluebird app (available for iPhone and Android from the App Store and Google Play, respectively). If a registrant needs instant access to a card, they can visit a Walmart store to purchase a Bluebird account setup kit for $5, which includes a temporary card, then register on Bluebird.com for a personalized Bluebird card imprinted with the user’s name.

Users would want to upgrade to the permanent or personalized card as the temporary card has a serious limit: You can only add up to $500. After registering and verifying your email address, Bluebird sends a personalized Bluebird card with your name on it seven to 10 days later. This card should be activated immediately upon receipt, according to Bluebird.

To be eligible for a Bluebird card, you need to have a valid Social Security number, be at least 18 years old and reside in the U.S. No credit reviews are required.

Who could benefit from the Bluebird card?

If you do not qualify for a traditional bank account due to poor credit or disinterest, the Bluebird prepaid debit card is a solid, reliable alternative to check-cashing companies. The card is also an option for those pursuing debt-free living, offering the ease of plastic payment without the monthly bill.

The Bluebird card is also convenient for others:

  • Regular Walmart shoppers who want to deposit and withdraw money
  • Those who do not plan on depositing more than $100,000 a year
  • Those who are interested in helpful financial management tools, such as low balance alerts and preventive measures against check-bouncing.

This prepaid debit card may also work well for tech-savvy parents who want to offer teen kids some plastic for trips and travels — with limits.

Overall review of Bluebird

For those with simple accounting requirements, the Bluebird prepaid debit card is a good alternative to a traditional bank account or prepaid debit card, providing a new, low-cost option to cost-conscious or credit-damaged consumers who still want to manage their money using features, such as bill pay, paper checks and instant online access.

While lacking some of the benefits of a traditional bank — such as interest-bearing savings accounts and brick-and-mortar service — the card offers many card benefits to those who might not otherwise qualify.

As well, the Bluebird prepaid debit card is a great pick for parents of teens, with the option to reload, monitor and reduce funds available to kids.

Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.

Lora Shinn |

Lora Shinn is a writer at MagnifyMoney. You can email Lora here

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Investing, Reviews

Fidelity Review 2019

Editorial Note: The editorial content on this page is not provided or commissioned by any financial institution. Any opinions, analyses, reviews, statements or recommendations expressed in this article are those of the author’s alone, and may not have been reviewed, approved or otherwise endorsed by any of these entities prior to publication.

With a whopping $6.9 trillion in assets under management, Fidelity is one of the country’s largest broker-dealers. That kind of size and power may seem like a detriment to some, but Fidelity’s focus on investor value, long-term planning, and fair and transparent pricing makes the Boston-based giant one of the industry’s more likable brands.

Fidelity offers an extensive array of investment products, including hundreds of proprietary mutual funds, index funds and exchange-traded funds (ETFs), and access to thousands of competitor fund investments. Its brokerage platform lets you trade international stocks, stock options and shares of initial public offerings. The firm also offers margin accounts and short selling capabilities for sophisticated investors. There is investing guidance available when you need it as well as 24-hour support. The best part? Lately, Fidelity has been on a mission to reduce the fees and expenses associated with being an investor.

Fidelity
Visit FidelitySecuredon Fidelity’s secure site
The bottom line: It’s not an overstatement to say Fidelity has something for every investor, with trading costs and account minimums that can’t be beat.

  • Full-service broker with a strong brand reputation
  • Extensive options for all investor types
  • Low or no fees and commissions on most products

Who should consider Fidelity

With much to offer, Fidelity is a great fit for many investor types. Beginner investors will appreciate the amount of guidance Fidelity offers to help you set a goal, create an investment strategy, and understand the benefits and risks of different asset classes. Once you’re ready to invest, Fidelity offers mutual funds with no minimum investment and no fees as well as no-fee brokerage accounts.

For index fund investors, Fidelity has four funds with 0% expense ratios and a roster of offerings that beat even low-fee giant Vanguard on price. Trading stocks or ETFs on the regular? Fidelity has low-cost trades, access to tons of research and a great platform for active traders. One company study found that even Fidelity’s bond prices are more competitive, saving investors an average of $14.55 per bond.

Fidelity fees and features

Current promotions

Get up to 500 free trades for two years when you fund an eligible account. The number of free trades is determined by the size of your deposit.

Stock trading fees
  • $4.95 per trade
Account minimum
  • $0
Tradable securities
  • Stocks
  • ETFs
  • Mutual funds
  • Bonds
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  • Futures / commodities
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Account fees (annual, transfer, inactivity)
  • $0 annual fee
  • $0 full account transfer fee
  • $0 partial account transfer fee
  • $0 inactivity fee
Commission-free ETFs offered
Mutual funds (no transaction fee) offered
Offers automated portfolio/robo-advisor
Account types
  • Individual taxable
  • Traditional IRA
  • Roth IRA
  • 529 Plan
  • Joint taxable
  • Rollover IRA
  • Rollover Roth IRA
  • Custodial Uniform Gift to Minors Act (UGMA)/Uniform Transfer to Minors Act (UTMA)
  • Custodial IRA
  • SEP IRA
  • Solo 401k (for small businesses)
  • SIMPLE IRA (Savings Incentive Match Plan for Employees)
  • Trust
  • Guardianship or Conservatorship
Ease of use
Mobile appiOS, Android, Fire OS
Customer supportPhone, 24/7 live support, Chat, Email, 190 branch locations
Research resources
  • SEC filings
  • Mutual fund reports
  • Earnings press releases

Strengths of Fidelity

  • Low-cost trading. Considering its size and infrastructure, you might not expect Fidelity to offer a competitive commission rate of $4.95 per trade as well as no-commission trades on select ETFs. E-Trade and TD Ameritrade will cost you $6.95 per trade. Charles Schwab also offers $4.95 trades, but Fidelity edges ahead with lower margin rates for traders with large debt balances.
  • No-fee investing. The company made a bold move in 2018 by offering a handful of index funds with 0% expense ratios, no fees and no minimums.
  • Mutual funds. Fidelity offers more than 200 proprietary mutual funds, representing a diversity of asset classes and investment strategies. More than 100 of the firm’s funds currently have four- or five-star ratings (out of five) by Morningstar based on risk-adjusted returns. You also can access more than 10,000 competitor mutual funds, along with tools to help you screen funds according to features, ratings, returns, expenses and more.
  • Research and planning. When it comes to research, Fidelity hits the mark in multiple ways. As an asset manager, Fidelity’s global research is extensive. More than 400 analysts around the globe cover over 2,600 companies and generate tons of research. For the average investor, Fidelity offers information to help make stock trading decisions, build a fund portfolio and learn about IPOs. There are lots of tools and calculators for everyday financial planning as well.

Drawbacks of Fidelity

  • High minimums for new investor promotions. Fidelity offers between 300 and 500 free trades for two years when you open a new account with a minimum of $50,000 to $100,000. To be fair, these minimums are lower than those required for similar promotions from competitors such as Charles Schwab, E-Trade and TD Ameritrade, but it’s a hurdle for the average new investor.
  • Slow customer service. Overall, Fidelity gets fairly high marks for customer service, with its focus on investment guidance and education. But with a company this size, there are bound to be a few negative reviews. Fidelity’s tend to focus on the customer service and speed. Service representatives can be slow to respond to complaints, money transfers can take weeks, and many customer communications are sent through the mail, according to some customers’ comments.

Is Fidelity safe?

Fidelity uses sophisticated technology to safeguard client accounts and transactions. Accounts at Fidelity are encrypted with two-factor identification, requiring an extra step of replying to a text message when it comes to sensitive transactions. Voice recognition technology is used to authenticate your identity over the phone. Fidelity’s systems are under 24/7 surveillance, from security at local branches to monitoring transactions for identity theft and protecting Fidelity’s website with the industry’s strongest firewalls.

Fidelity accounts also are FDIC-insured for up to $250,000 and SIPC-insured for up to $500,000 per account.

Final thoughts

To be a successful investor, it helps to have the right tools. It also helps to understand exactly what you’re paying for so you don’t lose too much of your investment earnings to commissions and fees. Fidelity provides both to investors, which is meaningful for a company that’s been around for more than 70 years.

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Melissa Phipps
Melissa Phipps |

Melissa Phipps is a writer at MagnifyMoney. You can email Melissa here

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