RE: If You have $5000 I have a Visa check card with Wingspan that works just fine. I also have brokerage accounts with better terms than Fidelity. This is a pretty expensive solution just to have an AMEX Gold or Platinum card which is just a status symbol. You have to have 5K in the account to apply and get approved and it's just a debit card. Who wants a Debit card that's not accepted everywhere? I have 5K but I wouldn't give it to Fidelity, AMEX has better customer service for their brokerage and 401K accounts. I've had Fidelity accounts before and was not impressed. Also their are tax ramifications to have brokerage accounts and investing, which most people can't even understand. If you want a debit card you can have a Visa.
RE: If You have $5000 The account that I would like to sign up for (CA Muni Money Market Fund) has no tax ramifications. That's one of the reasons why I'm signing up for it. I totally hear you about the whole status thing and how Am/Ex <may> have better rates than Fedelity but I can't get an account w/ Am/Ex. I might not be able to get an account w/ Fidelity......who knows. But the bottom line is that I have been looking for a brokerage account to invest my money in for quite some time.
RE: If You have $5000 The Amex card is paid out of the account at months end this is not a debit card which is withdrawn as you use the card daily! Besides you don;t have to keep the 5K in the account!
I agree with Eboni I agree with Eboni's views on this topic. First of all Fidelity is a brokerage firm (specializing in mutuals funds and other investment opportunities). Maybe AmEx and Fidelity have a partnership on a particular investment account, but who do you think is going to make out in the long haul? Not the customer. There are custodial charges to consider as well as tax implications. And yes, there are tax implications. Each time you withdraw that money (a direct rollover is an exception) you must pay penalties ( I am assuming) as well as report on your 1040 any profit you have made off the account. What does this account invest in? Small cap, mid cap, or large cap companies? Domestic or global? What is the risk 1-5? How does Morningstar rate this account? Personally, I would look further into it before jumping at the first chance to get an American Express (which will not even post to your credit report).
RE: I agree with Eboni Well, I've done some checking and Fidelity offers SEVERAL investment options that are TAX EXEMPT (they have lower interest rates though)! Since I'm in a higher tax bracket, I have chosen to go with this option. Someone who is in a lower tax bracket might choose an investment that is taxable because they will come out ahead in the long run (since the interest rate is higher). So, it all depends....don't get me wrong....I'm not doing this just to obtain an Am/Ex card (I have THREE already). I just saw other benifits and the Am/Ex deal was just icing on the cake!
RE: I agree with Eboni The costs of the account are $15 per Quarter if they are not waived by enough trades or investments. Now by all means I will agree that the levels to get a waiver is high, but on the flip side your geting a Chequing Account, paying great interest and a Gold Amex Card for 2 people for $5.00 per month. Not to mention all of the benefits like membership rewards free. Also if you click on the "special offers" Fidelity gives you a $100.00 credit for opening and funding the account! Amex charges $8.00 or 9.00 per month for their chequing account and gives you a generic ATM card, that's not even linked to Plus, Cirrus, or Amex (it' linked to MAC Star and Exchange). Gee what a dificult choice!
RE: I agree with Eboni Maybe I misunderstood. Is this being held by Fidelity (the brokerage firm) or by a bank named Fidelity. Is this an investment account or a savings account? To me it sounds like a savings account. With an investment account (IRA, 401K, stocks)interest rates do not come into play (instead its based on shares). The American Express then is a debit card (much like the Visa debit cards we have with our local banks). So you are just making interest off a savings account with a minimum of $5000 to qualify for the debit AmEx. Fidelity then charges you a fee each quarter for retainage of the account and AmEx charges you an upfront fee of $225 for holding their debit card. You still have the tax on savings interest (how much is the interest on the account, anyway?) and probably a limited # of withdrawls or an early penalty. Is this correct?
RE: I agree with Eboni Yes you are partly correct. It's Fidelity the Brokerage firm. They have several money market accounts (taxable and tax exempt) and the one that I'm interested in earns 5.x% (I wrote the exact percent down but misplaced it). And as far as them charging quarterly fees, my fees will be waved seeing that they already hold my 401k plan. But some other people might not be in the same position as I am. Also remember that the fee for obtaining either Am/Ex card that is offered DOES entitle you to the benifits of that card. This is good for people that want the benifits of a Gold/Platinum Am/Ex but can't qualify for a regular card.
RE: I agree with Eboni Thank you MP. I was a little confused on what type of account it was and the duties that it performed. If I read correctly you were interested in setting up the account in February. Let me know how it turns out. Best of luck. Dani
RE: I agree with Eboni I could have sworn someone said there was a $225 fee to establish the AmEx and Fidelity would meet $75 of it (or maybe it was a fee of $300 and Fidelity would pay a quarter of it.) But now I can't find the post anywhere. Maybe I was dreaming. Anyway, Michael let me know how it works out with your client. Best of luck. Dani
RE: Amex/Fidelity may not be f I am not the greatest fan of Amex either so if you want a Visa, go with Merrill Lynch, TD Waterhouse, etc. No one claims that Fidelity is perfect for everyone but they are not bad either. If one sticks to the no transaction fee mutual funds then there will be no fees. As far as the tax consequences, God forbid you get a 1099 at the end of the year that states that you earned interest and dividends ....sure beats getting the statement from CAP1 that states that you paid $2000 in fees and interest!!!
RE: I don't agree with Eboni There are 1000's of choices as to where to invest If you are conservative maybe a bond fund is the way to go. If you don't want any taxes look into a municipal bond fund. Fidelity has hundreds on their no transaction fee list. If you are ultra conservative then leave the money in the money market account. You can go with the tax free one if you like. You should never have a reason to withdraw funds and if you do you just sell the fund again for no fee. The idea scenario is to pay all your charges at the end of the month plus add a little more to your investment. If you ever don't have enough that is where margin comes into play..you get an automatic loan against your securities and depending on your underlying investment return you may pay only 2% annually. Again, I say this sure beats 30%. The idea is to get into the mind set of a saver not a borrower.
RE: I don't agree with Eboni Mike: I totally agree with your advice concerning saving. My concern was that it seemed that some people were interested only in the AmEx card instead of the investment account itself. I have 3 IRAs and a savings account so I agree people need to save, but I feel that people need to look into several different investments options before deciding which is the best one for them.
RE: FIDELITY AMEX CARD ON THE I think its a good deal! AND, I agree 100% with your methodology with AMEX Corp/Fidelity. AMEX will offer other preapproved products which of course, will report. Its a sharp Card! With my Green Card - this option amuses me. But I bet I get Gold Card this year based on my payments and income. Its a really sharp card - pull that out to pay - people will notice
