Which Bank Is Good As A Hub?

bananaRama1234 | Sep 14, 2024 | 63 posts since 2023

I currently have Fidelity CMA but they currently have excessive hold time(19 day for a request to ACH in). I'm looking for a place with high incoming/outgoing ACH limits, small incoming ACH hold time, no monthly maintenance fees, no limits on external links, and all the good stuff. Do you have any hub recommendations? Thank you!

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Answers

MoneyMoves | Sep 14, 2024 | 149 posts since 2019

I have a Fidelity brokerage account only (not cash management brokerage account). No issues with push/pull. No limits number of links. Same day the processing completes (unless weekend or holiday involved).

What was the explanation when you called for clarification why the new delay?

bananaRama1234 | Sep 14, 2024 | 63 posts since 2023

CSR via chat(2 different CSRs) said they cracking down on fraud so they are extending the hold time. Then I called in to talk to live agent and the first CSR told me the delay is due to Fidelity NOT being able to "collect all of the funds" yet. Told me to call my external CU and ask why they're not releasing all the funds. I called the external CU, lady checked with her supervisor in back office and verified that the transfer (in full) went thru!. As far as they were concerned, it's out of their hands now. They could not understand why it's taking 19 days to clear, normally would take 1-3 business days. Anyways, I called Fidelity a second time and a more experience CSR says should take 2-6 business days. Says the availability date shows on account is probably a mistake because he's never seen it take that long, esp when the transaction cleared coming from my external CU. He also checked with back office there were no pending issues regarding this transfer. I will check back on the 6th business day to see if Fidelity releases the fund. I will be extremely unhappy if they're going to hold my funds for 19 days!! I didn't receive any warning notice regarding a change in policy regarding ACH hold time. When I requested CSR to point me to change of policy they were not able to!!

MAKNYC | Sep 15, 2024 | 323 posts since 2015

Like MoneyMoves I utilize Fidelity not only as my hub account, but I now use them in lieu of a bank. Other than the inability it handle cash deposits and large cash withdrawals they checked all the boxes. While I set up a dedicated brokerage account there for this purpose, I don’t know of any differences between brokerage and CMA in how the accounts are structured for this purpose. I have not encountered any of the hold issues you cite. And I have up to 10 electronic transfers/week, although usually only 2-3 are push/pulls. Fidelity has offered best in class attributes, including same day push/pull and wider access to treasuries…they allow purchase of Cash Management Bills. A specific example related to your post…..I recently had a very large CD maturity at a local credit union. Prior to its maturity I had linked my Fidelity account to the pre-existing $5 savings account at the CU. When the matured funds were moved to the savings account I had Fidelity pull them that day. Given the size of the pull and the atypical nature of it I was concerned it might get flagged on the CU side and delayed. It did not. While the money was invested in the Fidelity sweep MMF immediately, their system would not allow me to purchase the premium class MMF with the entire balance because some of it was characterized as uncleared. But even that portion was settled within 3 days.

happyharold4 | Sep 14, 2024 | 388 posts since 2022

" All The Good Stuff "---Good luck with that after the Fed's meeting---But for now Cit Bank is who I'm using and has served me well.

bananaRama1234 | Sep 14, 2024 | 63 posts since 2023

Doctor of credit shows CIT Bank has a 1 week hold on inbound transfer. Is this true about the ACH hold time?

w00d00w | Sep 14, 2024 | 360 posts since 2012

comment deleted by user. addressed in another thread

bananaRama1234 | Sep 14, 2024 | 63 posts since 2023

which thread?

happyharold4 | Sep 16, 2024 | 388 posts since 2022

@Banana---Here is a drop down that appears while making a transfer---Also most pulls & pushes from Cit will require a phone/email code sent to you to verify.

For External Transfers Only

DEPOSITS MADE VIA AUTOMATED CLEARING HOUSE TRANSACTIONS

For funds deposited by an Automated Clearing House (ACH) transaction you initiate with CIT Bank (where the funds are withdrawn from your account at another bank for deposit to your CIT Bank account), we may place a hold on such deposited funds for a period of 5 business days.

Funds deposited by an ACH transaction you initiate through another US financial institution (where the funds are sent from your account at another bank for deposit to your CIT Bank account) are credited and available as of the business day CIT Bank receives the funds from your bank.

CIT Bank reserves the right to place an extended hold on any deposits that are believed to be fraudulent or are suspicious.

For information on cut-off times, when transfers are processed, and maximum transfer amount please refer to our CIT Bank Agreement for Personal Accounts which can be found at cit.com/cit-bank/resources/forms/

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