I agree, this is more about deterring fraud than them not being a bank. Not because of this but because I would rather not deal with fraud on one of my Fidelity accounts I changed the way I do my banking. Besides by Roth IRA and taxable brokerage I have two CMAs. The primary one is for direct deposit, check deposit (as I said before I'm not going to deposit checks), and bill pay (Fidelity's bill pay). If I don't need to move money somewhere it just stays in the CMA. The second CMA is for ATM cash withdrawals and I keep a set amount in this account so if something was to happen to my debit card when it's unlocked only that amount is at risk. I also like that I know the amount in there can be withdrawn and I don't have to remember any transfers or bills pays, makes keeping track easier.For clarity, IMHO this has nothing to do with Fidelity "not being a bank". As the article noted, Chace (a bank) was being hit by an increase in check fraud going through their ATM deposits. As they cracked down, attackers adapted and moved to Fidelity's mobile deposit. IMHO it wouldn't make any difference if Fidelity was - or wasn't - a bank. Attackers saw - and tried - to exploit things. Fidelity is reacting (similar to how Chace did before them), and seemingly succeeding, even if at times painfully so.
For check writing and other things that I would have to provide my checking account number out for (direct debit bill payment, tax refunds, linking another financial institution that would pull or push funds) I opened a free checking account at DCU (Digital Federal Credit Union). DCU currently offers 6.17% APY on their Primary Savings account on balances from $1 - $1,000 and 3.56% APY on their Advantage Savings account. So the amount I keep there will earn something.
The only thing DCU does not have is Zelle. That I get with my US Bank Smartly Checking account, the fee for this account is waived because I have a US Bank Cash+ credit card. I did not go with US Bank for my exposed checking account because the rules for the checking account fee wavier could change and DCU's savings rate were better.
Statistics: Posted by 3000 — Mon Sep 16, 2024 2:27 am — Replies 7216 — Views 1386091