How to Transfer Money from Fidelity to Bank Account

Fidelity Investments Inc., also referred to as Fidelity and earlier as Fidelity Management & Research or FMR, is an American financial services corporation with headquarters in Boston, Massachusetts. The institution was established in 1946 and is one of the most prominent asset managers in the world. Up to now, the institution has grown to accommodate millions of traders in the whole world. We shall see how to transfer money from Fidelity to a bank account later.

Fidelity allows investors to trade in bonds, mutual funds, stocks, ETFs, and options. The company also allows traders to buy fractional shares, giving them an option to diversify into higher-cost stocks when they purchase a slice of a share rather than the full one. Therefore, people with minimal money can still make their living via the business, thus leading to financial developments.

You can open your Fidelity account online, whereby you do not pay any account fees, and there are no minimums to open your account. You can be sure that you will get exceptional service from the dedicated crew. Fidelity offers a Cash Management Account, which is a brokerage account. Apart from trading, the account gives you an opportunity for your everyday spending and short-term investing needs. It is, therefore, an alternative to traditional checking accounts.

What are the requirements to open a Fidelity account?

You cannot open a Fidelity account or even an account with any other financial company without providing the necessary details that ensure that only genuine people can open accounts. You require the following.

  • Social Security number
  • Address and employer’s name, if applicable
  • Bank account details to fund the account
  • $2,500 investing minimum

There are zero fees to open or manage the Fidelity brokerage account, as I mentioned earlier. However, you cannot escape the equity trade fee, around $7.95 per trade. If you do not possess an account to fund your transactions, you can open a free online checking account with no opening deposit or credit check with online banks such as Chime or Chase.

How to apply for a Fidelity brokerage account

transfer money from Fidelity to a bank account

You can get started online by filling in the necessary details. The following is the process to apply for your Fidelity account. Have a look.

i) Fill in your personal information

To fill in your personal information, you must first visit the Fidelity website and navigate the Open an Account section. Select “Individual account” and click Next. Since you are a new service user, you will need to fill in personal details such as email address, street address, Social Security number, and so on in the spaces provided.

You should also enter your employment information, i.e., if employed, and indicate how often you will be trading. Next, you will need to answer whether you are related to any broker-dealer, stock exchange, or Financial Industry Regulatory Authority.

Also, you will need to answer whether any of your relatives is a director or a 10% shareholder of a public company. It would help if you answered “no” to the questions to be safe.

ii) Set up your account settings

The next thing is setting up Fidelity’s account settings. Here, you will quickly send the move to the next step. Most importantly, you will have to answer questions about your email preferences, such as whether you would like to receive Fidelity newsletters or not.

iii) Review and confirm your account

Reviewing means checking information to see whether everything is okay before submitting your details. You must also check the terms and conditions to familiarize yourself with them. Click ‘Yes” at the bottom of the screen to submit.

iv) Fund your account

Now that you have completed opening your brokerage account, the next thing is to fund it and start trading. You can use a bank or another brokerage account.

How to transfer money from Fidelity to a bank account

Once you have traded enough and need to withdraw money, withdrawing to a bank account is the best option. You can choose either a wire transfer or the electronic funds transfer (EFT) to withdraw money.

An electronic transfer involves the digital transfer of money. The transfers can occur between accounts of the same company or a different institution. On the other hand, a bank wire transfer involves an electronic money transfer where banks communicate to exchange information. Wire transfers require you to transfer money using the routing number and account number of the recipient.

For wire transfers, the employees of the sending and receiving banks review the transfer to make sure that the account has the necessary amount of money to cater for a transfer and that the receiving bank can accept the funds.

Once you choose to transfer funds, you can enable your account for either EFT or wire transfers. You need to link Fidelity with a bank and then choose whether to transfer funds using EFT or wire transfers. You can still enable both transfer methods. Once finished, you can then begin your transfer.

Wire transfers are the best since the transfers occur the same business day if you submit the request by 4 p.m. E.T. Fidelity charges no fees, but the receiving bank may charge some fees to receive the funds. You can withdraw up to $100,000. EFT transfers are free, and you can send up to $100,000 per withdrawal. The transfer takes 1-3 business days to complete.

The wire transfer method is proper when you want to transfer money to someone else’s bank account. Most wire transfers are irreversible, and once initiated, you cannot reverse them.

How else can you send money from a Fidelity brokerage?

Wire and EFT transfer methods are not the only ways you can use to transfer money out of your Fidelity account. Other ways you can use to transfer funds include;

  • PayPal
  • Venmo
  • Square
  • Apple Pay
  • Google Pay, and
  • Samsung Pay

You can also use paper checks to transfer funds from the brokerage account. Even though checks are outdated money transfer mediums, some people still prefer using them. The only problem is the lengthy transfer period.

You can also deposit checks in Fidelity. To deposit a check, you need to take and upload a photo of the check to the company’s Mobile App or deposit it directly at any local Fidelity investor center.

Does Fidelity accept ACH when you transfer money from Fidelity to a bank account?

Fidelity bank accepts Automated Clearing House transfers, and thus you can accept ACH payments instantly once they are transferred to top up your trading account. However, ACH transfers take several days to transfer from one financial company to another. ACH transfers are secure, unlike wire transfers which can quickly lose money if you enter the wrong details.

Is it safe to use Fidelity services?

Fidelity is safe to use since it employs various security mechanisms to safeguard your money with a password. Also, the institution uses data encryption techniques to prevent third parties from accessing the site illegally.

Moreover, the brokerage account has insurance from the Securities Investor Protection Corporation (SIPC). The body protects $500,000 per investor, including only up to $250,000 in cash. Also, the funds you invest are swept to partner banks which have FDIC insurance, and thus you have no reason to worry.

Does Fidelity issue debit cards?

As I mentioned earlier, a Fidelity brokerage allows you to access funds for your everyday activities, and you can get a debit card to use for your transactions. The PNC Bank and N.A issue the Fidelity Brokerage Account debit card while the BNY Mellon Investment Servicing Company administers the program.

The importance of having a debit card is that you can easily withdraw money at ATMs. You can also buy goods and services online and from various physical stores. Debit cards also allow you to transfer money to a bank, like you may transfer money from your prepaid debit card to a bank account.

Which are the various accounts that you can open at Fidelity?

Fidelity offers various account types that can be of benefit to you. They include the following.

1) Brokerage Account – The Fidelity Account®

It has no fees and no minimums. It allows you to trade in bonds, mutual funds, C.D.s, and IPOs.

2) Cash Management Account – Fidelity® Cash Management Account

You can open one to save, spend, and manage your cash. Deposits are eligible for FDIC insurance. FDIC insurance ensures that your money will not be lost if the company collapses.

3) The Fidelity Account® for Business

Offers low-cost brokerage, mutual funds, comprehensive trading, and cash management features

Other accounts include Rollover IRA, Traditional IRA, Roth IRA, Inherited IRA, and Inherited Roth IRA.

Bottom line

Fidelity Investments Inc. is an American financial services corporation headquartered in Boston, Massachusetts. The company allows you to trade in bonds, mutual funds, stocks, ETFs, and options. You can open Fidelity with no account fees and no minimum deposit. Fidelity is safe due to the various layers of security that the company has invested in. Furthermore, you can obtain a debit card from Fidelity and use it for numerous transaction activities.

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