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SoFi Money Checking Account Review

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.

SoFi Money review
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SoFi, the financial institution known for low rates and low fees on student loans and mortgages, is making a foray into consumer checking accounts. SoFi Money™, SoFi’s forthcoming checking account, will offer a high-yield checking account with no account fees.

The new account isn’t yet available to the public, so you’ll have to join a waitlist if you want to sign up.

In the meantime, we looked at every aspect of SoFi’s new checking account offering to see how it stacks up to competitors.

What sets Money apart from the competition is that SoFi clearly wants this account to be a one-stop shop for both savings and checking. Basically, the SoFi Money account will offer an interest rate that’s much higher than the rate on most checking accounts. This means you can keep your savings in your checking account rather than a savings account. This sounds convenient, but it’s not always the best idea.

Some people may manage to save more money when they separate their money into a different account, even if the account doesn’t have a great interest rate. And you can certainly find savings accounts with higher yields than the 0.92% APY SoFi Money is offering.

We dug into the details that are available at this time to see who should consider replacing their current checking account with SoFi Money.

SoFi Money vs Ally and Capital One 360

The SoFi Money account offers an excellent blend of low fees and high interest rates, but it won’t be perfect for everyone. We’re highlighting a few accounts that shine where the SoFi Money account is a bit weaker.

“I see SoFi Money’s biggest competition being from Ally and Capital One. Both offer free online interest checking accounts with lots of perks,” said Ken Tumin, editor of DepositAccounts.com, another LendingTree-owned site.

“Their checking account rates may be a little lower than SoFi’s checking account for most balances, but they also offer savings and money market accounts which offer much higher interest rates. Savings and money market rates have risen much more than checking account rates since the Fed began raising interest rates.”

Bank

APY (Checking)

APY (savings)

0.92%

N/A

Pros:

  • No monthly fee
  • No overdraft fees
  • High APY on checking
  • 6 monthly ATM reimbursements include international ATMs

Cons:

  • No savings accounts
  • No free ATM network
  • 1% foreign transaction fee when you use your Visa® Debit Card


0.20% on account balances up to $49,999.99.



0.75% on account balances from $50,000 to $99,999.99.




1% on account balances of $100,000 or more.

1.00%

Pros:

  • No foreign transaction fees
  • Overdraft line of credit available (opt-in only)
  • Free Capital One® and Allpoint® ATM use
  • Instant transfer between Capital One checking and savings

Cons:

  • Low APY on checking
  • No ATM reimbursement
  • $9 NSF fee
  • $35 overdraft fee per item (only if opted into “Next Day Grace”)


0.10% on account balances up to $14,999.99.



0.60% on account balances of $15,000 or more.

1.45%

Pros:

  • Up to $10 ATM reimbursement
  • Free use of Allpoint® ATMs
  • High-yield savings
  • Instant transfers between checking and savings (including free transfers to protect against overdrafts)

Cons:

  • $25 overdraft fee (one per item)
  • Up to 1% foreign transaction fees
  • ATM reimbursement only available in the United States

What’s exciting about the SoFi Money account

No account fees. This will be a huge benefit to people who tend to keep low balances or live paycheck to paycheck, as fee-free accounts are few and far between among traditional big banks these days. With SoFi Money, you won’t pay a monthly maintenance fee and you won’t have to worry about paying non-sufficient funds fee (NSF) or overdraft fees either. You’ll also get free checks, free automatic bill pay and free mobile funds transfers. Very few banks offer this level of “fee free,” and those that do often offer paltry interest rates.

High yield without complicated account requirements. Some high-yield checking accounts require account holders to maintain minimum balances, use their debit card a certain number of times or set up direct deposit. SoFi has no such requirements. The interest rate on the account is currently 0.92% APY, and it is a variable interest rate that is subject to change. In a rising rate environment, you could easily see that rate go up over time, as many other banks have been raising their rates in response to the rising federal funds rate.

Up to $1.5 million in FDIC insurance. One of the unique features of the SoFi Money account is in its design. Money kept in the SoFi Money account is actually “swept” into one of six program banks. All six banks give account holders up to $250,000 in FDIC insurance, so SoFi Money™ holders get up to $1.5 million in total FDIC insurance. While not many people will need that much insurance, it is a notable feature.

ATM fee reimbursement. SoFi doesn’t charge any ATM fees, but SoFi also isn’t part of an ATM network. That means other banks may charge you to make a withdrawal from your SoFi Money™ that bank’s ATM. To help soften that blow, SoFi says it will reimburse account holders for up to six ATM fees per month, even on international ATMs. After that, you have to pay for other bank’s ATM fees out of your own pocket. What’s interesting with this perk is that there’s no dollar amount tied to that reimbursement. They say they’ll reimburse you for six ATM fees, no matter what those fees add up to. In contrast, other banks may reimburse for ATM fees up to a set dollar limit, like $10 at Ally.

Membership with SoFi. Opening a SoFi Money account makes you a member of SoFi. SoFi isn’t an exclusive club, but it provides its members with unique services like career coaching, local networking events and an entrepreneurship accelerator. If you’re looking to grow in your career, spruce up your resume, network with local career-minded individuals or just put a face with your bank, SoFi provides events that can help you out.

Digital first banking. Most people will interact with their SoFi Money account through the digital app. The app will include mobile banking features such as bill pay, photo check deposit, and mobile cash transfers. Although SoFi promises a digital-first experience, it remains to be seen if they can deliver. SoFi had a rocky update to its current app at the end of 2017, but has resolved the issues. Hopefully, the addition of SoFi Money to the SoFi app goes smoothly.

No account minimums. You do not need to maintain any particular balance to avoid fees or to earn interest.

Free checks. Plenty of SoFi Money account holders will forgo physical checks altogether, but those that need them can request checks for free.

SoFi Money features that aren’t so great

There isn’t much not to like about SoFi Money™, to be honest. But there are a couple of areas where we think other banks do it better. Although, considering the few fees SoFi charges, plus the relatively high APY it offers, some of these shortcomings might be fine to overlook, depending on how you use your account.

Six free ATM uses per month: SoFi isn’t part of a network of ATMs, which means that account holders will get hit with other banks ATM fees every time they visit an ATM. SoFi will refund up to six ATM fees every month as long as the ATM has a Visa, Plus or NYCE logo. This is a decent benefit since SoFi will even refund fees from international ATMs.

However, some banks including Axos Bank (domestic ATMs only), the Summit account at Aspiration Bank, Charles Schwab High Yield Investor Checking® account and Fidelity® Cash Management Account offer unlimited refunds on other banks ATMs (plus have a network of ATMs).

Interest rates: The SoFi Money account currently has a 0.92% APY yield. This rate is far higher than most checking account rates, but you can find checking accounts with higher interest rates (particularly if you have less than $20,000 in your account) elsewhere. However, finding high-yield checking accounts with as few eligibility requirements and fees will be tough. SoFi still has an edge there.

1% foreign transaction fee: Like most checking accounts, SoFi charges a 1% foreign transaction fee whenever you use your debit card to make a purchase in a foreign currency. Although this is common, some banks waive this fee.

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What’s in the fine print?

  • 1% foreign transaction fee. Whenever you use your SoFi Money Visa® Debit Card to pay for something in a foreign currency, you’ll pay a 1% fee to have the transaction converted to U.S. dollars. This is even true when you use the card to withdraw cash from an international ATM. This is a standard rate that few banks waive.
  • Standard fees for ingoing and outgoing wire transfers (actual fees not yet announced).
  • To open up a SoFi Money account, you must be 18 years old and a U.S. citizen or permanent resident.
  • ATM fee refunds capped to six refunds per month. With a cap this high, most people won’t run into charges, but it could be a limiting factor for some people.

Accounts with better interest rates

Smaller banks that have “reward” checking accounts offer superior interest rates to the rates offered by SoFi. These banks limit their high interest rates to a subset of balances. They also require account holders to meet certain account usage requirements (such as debit card use minimums or direct deposits). Despite these requirements, these checking accounts may be superior savings vehicles.

For example, people with low checking account balances should consider an account at America’s Credit Union rather than SoFi. America’s Credit Union offers a 5.00% APY on balances up to $1,000. (After that, rates drop to .10% on balances between $1,000.01 and $15,000 and .25% on balances over $15,000.01). This account doesn’t have any monthly service fee, but it doesn’t offer any ATM refunds. Plus, earning the high interest rate requires you to meet several standards including 10 monthly uses of the debit card, at least $15,000 in loans or deposits with ACU, and at least $500 in direct deposits monthly.

Still, with a massive 5% APY on the first $1,000, many people can earn more interest by checking with America’s Credit Union. You can learn more about the details, requirements and limitations of America’s Credit Union here.

People with larger account balances (up to $20,000) may prefer holding their account at Consumers Credit Union. This account has no monthly service fees, unlimited ATM reimbursement and high-yield accounts. You’ll earn 3.09% APY on balances up to $10,000, 3.59% APY on balances up to $15,000 and 4.59% APY on balances up to $20,000.

Consumers Credit Union requires account holders to meet four requirements to earn interest. The requirements include making 12 point-of-sale debit purchases (without using a PIN number), having a direct deposit or bill pay, signing onto the online banking system once per month and signing up for eStatements. The requirements may be annoying, but the interest is shockingly high. Learn more about the account here.

Accounts that reimburse all ATM fees worldwide

One of the drawbacks to the SoFi Money account is the limit of six ATM fee reimbursements per month. If you’re a heavy ATM user (especially while abroad), it’s worth noting that some accounts offer unlimited ATM fee reimbursement even on international ATMs.

The Charles Schwab High Yield Checking account is probably the best example of this feature. Not only will you receive unlimited ATM reimbursements, you’ll also avoid paying any foreign transaction fees. However, this account has an APY of 0.15% compared with SoFi’s 0.92% APY.

Similarly, the Summit account at Aspiration Bank has unlimited reimbursement on ATMs worldwide. This account also offers a 1.00% APY on accounts with balances over $2,500 (.25% APY on smaller balances). However, you will still pay a 1.1% foreign transaction fee, and Aspiration charges a number of other fees, including not-sufficient funds fees.

Accounts with no foreign transaction fees

The 1% foreign transaction fee on SoFi Money accounts isn’t an onerous fee, but some major banks waive this fee. Once again, the Charles Schwab High Yield Checking account waives all foreign transaction fees. It also offers unlimited reimbursements on ATM fees worldwide. This is likely the premier account for international travelers, but it offers a paltry .15% APY.

Capital One 360 also waives all foreign transaction fees on its checking accounts. However, these accounts carry a number of other fees and a lower interest rate than the SoFi Money account. Plus, Capital One won’t reimburse ATM fees charged by other banks.

Final take on SoFi Money

SoFi Money is a checking account that will make a lot of sense for a lot of people. It’s one of the simplest accounts, and it offers unique benefits. The blend of low fees and higher interest rates should appeal to plenty of people. It’s an account that beats out most checking accounts from large banks, and it beats out accounts from most smaller banks, too (especially on the low-fee front).

If SoFi manages to implement the account without messing up its app, this account will quickly become a favorite account among people seeking accounts that don’t charge unnecessary fees.

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.

Hannah Rounds
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Hannah Rounds is a writer at MagnifyMoney. You can email Hannah here

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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.

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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
  • Options
  • Futures / commodities
  • Forex
  • Crypto-currency
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.

Open a Fidelity accountSecured
on Fidelity’s secure website

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.

Melissa Phipps
Melissa Phipps |

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

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