Banking Review: Fidelity MySmart Cash

It seems that banks these days try to nickel and dime us at every turn, with all kinds of fees - maintenance fees, transfer fees, over activity fees - you name it, they'll charge it. I was quickly becoming unhappy with my bank charging me all these fees. Finally, I decided to switch and I came upon the Fidelity mySmart Cash Account. The mySmart Cash account is a free checking account with the brokerage firm Fidelity and offers a 1-2% interest and no minimum. It's free to open and offers free online banking and bill pay. Best of all, in my opinion, they have no ATM fees - they do not charge fees for their own and they will refund you any fees if you use another institution's ATM.

How It Works

Unless you already have a Fidelity Brokerage Account, you will have to apply for the mySmart Cash account by going to their website and downloading an application. You will have to print it out and mail it to Fidelity. This process is fairly easy, albeit time consuming, but it only takes about 1 week to set you up before they send you the paperwork confirming that you're all set. You can fund your account via Electronic Transfer from another bank or by sending a check to Fidelity, using free prepaid envelopes and deposit slips.

Since Fidelity is a brokerage firm, your money is actually held in another FDIC insured bank. So far, I have not had any problems with this and my cash is always available.

The Pros

As mentioned, the Fidelity mySmart Cash checking account is free. Internet banking and paying bills online are free. Ordering checks are free. They also give you a Visa debit and ATM card, which you can use at any ATM or merchant that accepts Visa, and all fees will be refunded to you on the same day. I've also used this card abroad and found that they do not charge any foreign transaction fees. There's no minimum requirement to maintain the account and you can even have your paycheck direct deposited.

The Cons

If you need a traditional brick and mortar bank, the Fidelity mySmart Cash free checking may not be for you. Unless you live in a city that has a Fidelity Center, such as San Francisco and Boston, you'll have to settle for help online and on the phone. If you want to deposit any checks, you'll have to send it in via mail, which can take about 1 week to show up in your account. The phone service is available 24/7 365 days a year and is quite excellent. The online interface takes some getting used to - it can be cluttered and the brokerage jargon may intimidate you.

The Verdict

Opening a Fidelity mySmart Cash checking account has been one of the best things I've done. Since I have no need for a regular bank, I have gotten rid of my other bank. I can use any ATM, anywhere in the world and even if the machine says "you will incur X amount of fees", I can't help but laugh because I know I'll be seeing that fee credited back to my account the very same day. I have also found myself looking around the website and have opened a ROTH IRA and purchased some CDs with very good interest rates. No ATM fees, interest bearing and free checking, who could ask for more?