Nov 19, 2013, 6:07 pm
Last edit by: TravelinSperry
All offers are expired/dead as of March 31, 2017
AA: https://scs.fidelity.com/other/offer...shtml?MSC=AA01
United: https://scs.fidelity.com/other/offer...shtml?MSC=UA01
Delta: https://scs.fidelity.com/other/offer...on_delta.shtml
Update as of May 21, 2014 - in recent weeks some people have reported being told that they are no longer eligible for this offer, in spite of meeting the previous terms and conditions. Some Fidelity representatives are saying that these offers are targeted. Note the bold words in the the terms and conditions below - "Other terms and conditions may apply."
The funds or securities must stay in the account for 9 months
The offer may be repeated every 365 days if the terms were met (rolling 12 months)
The funds may not already be in a Fidelity account, but must be sourced from elsewhere
If you are moving funds or securities out of Fidelity, with intent to move it back to claim this bonus, members have recommended to keep the funds/securities out for at least 3 months to avoid risk of losing eligibility for the deposit. Some have been told unofficially by advisers 30 days. YMMV.
Members who have pulled funds/deposits out within 9 months have reported they were allowed to keep the miles, but were banned for life from being able to repeat the offer.
Added September 26, 2016:
Any withdrawals from the account during the qualification period will count against the total deposited. This includes dividends upon you may dependent to live. So be sure to transfer assets whose value covers the minimum you need plus any you might withdraw during those 60 days.
It is strongly suggested you register for the offer you want by calling Fidelity's Promotion Department at (800)544-5315, as the online registration has been flaky in the past. Also, if you have high net worth, a "High Net Worth supervisor" may be able to help - simply call the Premium Services number on your account statement to find someone who has the power to do most anything. Get the name and phone number of the person you spoke with and ask him or her to note in your account that you have been approved, and by whom. Then, if after you transfer assets you get an email saying you are not eligible for the offer for which you registered (yes, this has happened), call the rep again, asking to read the notes on your account. You will probably be told that the email was automated and was sent in error and that they will hand babysit the funding and resultant miles.
If the registration page tells you are not eligible because you have had the offer before, call one of the above numbers. You are eligible after on year. That year probably starts counting when the miles are awarded, not when you register or when you add assets.
Trusts require extra caution on their part. Sometimes they require that you give them a lot of paperwork for trusts. If you have a local Fidelity office, just bring in everything required and they will copy and mail it for you. Easy. Otherwise, just mail it in. If upon trying to register online you are informed that your Revocable Living Trust account is not eligible, well, just call one of the above numbers, because it is eligible. They just have to verify a few things and then override the system. They want to know that you are the only trustee and the only beneficiary.
From the Terms and Conditions page:
Promotional Offer Rules:
This promotional offer is only available to new or existing Fidelity brokerage account customers opening or depositing net new assets into a joint or individual nonretirement Fidelity Account®. Net new assets are defined as an individual’s external new money in minus money out, including distributions and transfers.
This offer expires September 30, 2014, and is not transferable or valid in conjunction with any other Fidelity promotional offer. Fidelity Investments reserves the right to modify, change, or alter the terms and conditions of the promotional offer in its sole discretion at any time. Fidelity Investments may terminate this promotional offer at any time. Other terms and conditions may apply.
Promotional offers are limited to one per individual per rolling 12 months.
The promotion is not available for business accounts; trust accounts; mutual fund only accounts; retirement accounts, including, among others, Fidelity IRA, Roth IRA, SEP, and SIMPLE accounts; 401(k) and 403(b) workplace retirement plans; fiduciary accounts (including custodial accounts, estate accounts); 529 college savings plan accounts (i.e. college investment trust accounts); Fidelity accounts managed by Strategic Advisers, Inc. (for example, Portfolio Advisory Services); Institutional Wealth Services (IWS) clients; clients of registered investment advisors working with Fidelity Investments; annuities; and Stock Plan Services accounts. Offer is not valid for non-U.S. residents; persons affiliated with FINRA, a securities exchange or its members; employees of Fidelity, its affiliates, and members of their immediate families and households; or the media.
Certain states and local jurisdictions have laws that limit or restrict public employees from accepting items of value from vendors such as Fidelity that provide services to public institutions. Some public entities such as governments, state universities, health care organizations, etc., also have internal policies that may contain similar restrictions. If you are a public official or employee, you should determine if one of these laws or internal policies applies to you. By accepting this incentive, we assume that you are in compliance with your jurisdiction's laws and institution's internal policies.
Transferred assets will be valued, for the purposes of determining eligibility for this promotional offer, at the close of business Eastern time on the business day or next business day, if on a weekend day or holiday, following receipt by Fidelity Investments of the assets into the account that is eligible for the promotional offer. Funding must come from an external, non-Fidelity source via any standard monetary transfer method (a standard Transfer of Assets form, check, electronic funds transfer, ADM deposit, etc.). Please allow eight weeks from the funding of the eligible account, with the qualifying dollar amount of assets, for American Airlines AAdvantage® miles to be posted to your AAdvantage® account. Your Fidelity Account® must remain open with the qualifying funding for six months from the date that the qualifying assets are first received in the eligible account.
New accounts must be opened within 30 days of registering for the offer. Additional deposits to the eligible Fidelity account may earn you a higher mileage award provided the result is that the cumulative assets meet or exceed the next eligibility tier (up to a maximum of 50,000 AAdvantage® miles). For new accounts, initial and subsequent deposits must be made within 60 days of Fidelity account opening. For new money deposited into existing accounts, all deposits must be made within 60 days of registering for the offer.
AA: https://scs.fidelity.com/other/offer...shtml?MSC=AA01
United: https://scs.fidelity.com/other/offer...shtml?MSC=UA01
Delta: https://scs.fidelity.com/other/offer...on_delta.shtml
Update as of May 21, 2014 - in recent weeks some people have reported being told that they are no longer eligible for this offer, in spite of meeting the previous terms and conditions. Some Fidelity representatives are saying that these offers are targeted. Note the bold words in the the terms and conditions below - "Other terms and conditions may apply."
The funds or securities must stay in the account for 9 months
The offer may be repeated every 365 days if the terms were met (rolling 12 months)
The funds may not already be in a Fidelity account, but must be sourced from elsewhere
If you are moving funds or securities out of Fidelity, with intent to move it back to claim this bonus, members have recommended to keep the funds/securities out for at least 3 months to avoid risk of losing eligibility for the deposit. Some have been told unofficially by advisers 30 days. YMMV.
Members who have pulled funds/deposits out within 9 months have reported they were allowed to keep the miles, but were banned for life from being able to repeat the offer.
Added September 26, 2016:
Any withdrawals from the account during the qualification period will count against the total deposited. This includes dividends upon you may dependent to live. So be sure to transfer assets whose value covers the minimum you need plus any you might withdraw during those 60 days.
It is strongly suggested you register for the offer you want by calling Fidelity's Promotion Department at (800)544-5315, as the online registration has been flaky in the past. Also, if you have high net worth, a "High Net Worth supervisor" may be able to help - simply call the Premium Services number on your account statement to find someone who has the power to do most anything. Get the name and phone number of the person you spoke with and ask him or her to note in your account that you have been approved, and by whom. Then, if after you transfer assets you get an email saying you are not eligible for the offer for which you registered (yes, this has happened), call the rep again, asking to read the notes on your account. You will probably be told that the email was automated and was sent in error and that they will hand babysit the funding and resultant miles.
If the registration page tells you are not eligible because you have had the offer before, call one of the above numbers. You are eligible after on year. That year probably starts counting when the miles are awarded, not when you register or when you add assets.
Trusts require extra caution on their part. Sometimes they require that you give them a lot of paperwork for trusts. If you have a local Fidelity office, just bring in everything required and they will copy and mail it for you. Easy. Otherwise, just mail it in. If upon trying to register online you are informed that your Revocable Living Trust account is not eligible, well, just call one of the above numbers, because it is eligible. They just have to verify a few things and then override the system. They want to know that you are the only trustee and the only beneficiary.
From the Terms and Conditions page:
Promotional Offer Rules:
This promotional offer is only available to new or existing Fidelity brokerage account customers opening or depositing net new assets into a joint or individual nonretirement Fidelity Account®. Net new assets are defined as an individual’s external new money in minus money out, including distributions and transfers.
This offer expires September 30, 2014, and is not transferable or valid in conjunction with any other Fidelity promotional offer. Fidelity Investments reserves the right to modify, change, or alter the terms and conditions of the promotional offer in its sole discretion at any time. Fidelity Investments may terminate this promotional offer at any time. Other terms and conditions may apply.
Promotional offers are limited to one per individual per rolling 12 months.
The promotion is not available for business accounts; trust accounts; mutual fund only accounts; retirement accounts, including, among others, Fidelity IRA, Roth IRA, SEP, and SIMPLE accounts; 401(k) and 403(b) workplace retirement plans; fiduciary accounts (including custodial accounts, estate accounts); 529 college savings plan accounts (i.e. college investment trust accounts); Fidelity accounts managed by Strategic Advisers, Inc. (for example, Portfolio Advisory Services); Institutional Wealth Services (IWS) clients; clients of registered investment advisors working with Fidelity Investments; annuities; and Stock Plan Services accounts. Offer is not valid for non-U.S. residents; persons affiliated with FINRA, a securities exchange or its members; employees of Fidelity, its affiliates, and members of their immediate families and households; or the media.
Certain states and local jurisdictions have laws that limit or restrict public employees from accepting items of value from vendors such as Fidelity that provide services to public institutions. Some public entities such as governments, state universities, health care organizations, etc., also have internal policies that may contain similar restrictions. If you are a public official or employee, you should determine if one of these laws or internal policies applies to you. By accepting this incentive, we assume that you are in compliance with your jurisdiction's laws and institution's internal policies.
Transferred assets will be valued, for the purposes of determining eligibility for this promotional offer, at the close of business Eastern time on the business day or next business day, if on a weekend day or holiday, following receipt by Fidelity Investments of the assets into the account that is eligible for the promotional offer. Funding must come from an external, non-Fidelity source via any standard monetary transfer method (a standard Transfer of Assets form, check, electronic funds transfer, ADM deposit, etc.). Please allow eight weeks from the funding of the eligible account, with the qualifying dollar amount of assets, for American Airlines AAdvantage® miles to be posted to your AAdvantage® account. Your Fidelity Account® must remain open with the qualifying funding for six months from the date that the qualifying assets are first received in the eligible account.
New accounts must be opened within 30 days of registering for the offer. Additional deposits to the eligible Fidelity account may earn you a higher mileage award provided the result is that the cumulative assets meet or exceed the next eligibility tier (up to a maximum of 50,000 AAdvantage® miles). For new accounts, initial and subsequent deposits must be made within 60 days of Fidelity account opening. For new money deposited into existing accounts, all deposits must be made within 60 days of registering for the offer.
Fidelity Bonus offers for airline miles & hotel points [EXPIRED March 31, 2017]
Oct 14, 2013, 5:58 pm
#1396
Join Date: Jan 2008
Posts: 470
I sweep the uninvested cash in my Fidelity IRAs into FDIC-insured bank accounts every night but they won't let me do it with my brokerage account.
Oct 14, 2013, 6:43 pm
#1397
Join Date: May 2004
Programs: AA lifetime platinum, Jet Blue Mosaic
Posts: 438
Caveat, I received nothing in writing.
Oct 14, 2013, 10:03 pm
#1398
Join Date: Jul 2013
Posts: 53
Now the question is, when you enroll again after the 12 months have passed from the last time you funded for the promo, would Fido consider the withdrawal made 6 months ago, negate the "new money" you brought in, like being told by lanago2's posts,
Yes, that was absolutely my experience. I negotiate as a career, and am not much fazed by being called names, or annoying someone, so long as I finally hear the sweet magic words along the line of "get out of my face, you can have it!" (Whether miles or the $1,000). The 6 months rule: can't withdraw for at least 6 months or AA miles clawed back. The two 12 month rules I was told: (1) must be $ Fidelity hasn't had as a deposit in your account for 12 months (2) only one bonus over a 12 month period.
12 months "in:" Let's say you deposit 100k. In a few weeks, get 40,000 AA miles. Wait 6 months, withdraw it. Miles stick. OK, you can. But starting at that 6 month period, you must wait to redeposit for another 12 months. I am wondering if this actually allows for 2 bonuses, (50,000 x 2= 100,000 miles) within 18 months rather than 24. I don't think so, but it'd be interesting if someone succeeded.
Yes, cash is insured to $250k across all your Fidelty accounts. If you are fortunate to have over $250k in cash across your accounts, if the cash is invested in MM funds with Fidelity, it appears that the insured limit is $500k. However, Lloyd's has additional Fidelity insurance available, below.
Fidelity language as of today: "Assets held in your Fidelity Brokerage Account: Fidelity’s brokerage businesses (Fidelity Brokerage Services LLC and National Financial Services LLC (NFS)) are members of the Securities Investor Protection Corporation (SIPC), and brokerage accounts maintained with Fidelity are protected by SIPC, which protects brokerage accounts of each customer when a brokerage firm is closed due to bankruptcy or other financial difficulties and customer assets are missing from accounts. SIPC protects brokerage accounts of each customer up to $500,000 in securities, including a limit of $250,000 on claims for cash. Money market funds held in a brokerage account are considered securities. For more information on SIPC coverage, please review the brochure “How SIPC Protects You” available for free download at www.sipc.org
In addition to SIPC protection, Fidelity, through NFS, provides its brokerage customers with additional "excess of SIPC" coverage from Lloyd's of London together with other insurers1. The excess of SIPC coverage would only be used when SIPC coverage is exhausted. Like SIPC, excess of SIPC protection does not cover investment losses in customer accounts due to market fluctuation. It also does not cover other claims for losses incurred while broker-dealers remain in business. Total aggregate excess of SIPC coverage available through Fidelity's excess of SIPC policy is $1 billion. Within Fidelity's excess of SIPC coverage, there is no per account dollar limit on coverage of securities, but there is a per account limit of $1.9 million on coverage of cash awaiting investment. This is the maximum excess of SIPC protection currently available in the brokerage industry.
Both SIPC and Excess of SIPC coverage is limited to securities held in brokerage positions, including mutual funds if held in your brokerage account and securities held in book entry form. Neither SIPC nor the additional coverage protects against loss of market value of the securities.
Note: Certain assets are not eligible for SIPC protection. Among the assets typically not eligible for SIPC protection are commodity futures contracts, precious metals, as well as investment contracts (such as limited partnerships) and fixed annuity contracts that are not registered with the U.S. Securities and Exchange Commission under the Securities Act of 1933."
Yes, that was absolutely my experience. I negotiate as a career, and am not much fazed by being called names, or annoying someone, so long as I finally hear the sweet magic words along the line of "get out of my face, you can have it!" (Whether miles or the $1,000). The 6 months rule: can't withdraw for at least 6 months or AA miles clawed back. The two 12 month rules I was told: (1) must be $ Fidelity hasn't had as a deposit in your account for 12 months (2) only one bonus over a 12 month period.
12 months "in:" Let's say you deposit 100k. In a few weeks, get 40,000 AA miles. Wait 6 months, withdraw it. Miles stick. OK, you can. But starting at that 6 month period, you must wait to redeposit for another 12 months. I am wondering if this actually allows for 2 bonuses, (50,000 x 2= 100,000 miles) within 18 months rather than 24. I don't think so, but it'd be interesting if someone succeeded.
Yes, cash is insured to $250k across all your Fidelty accounts. If you are fortunate to have over $250k in cash across your accounts, if the cash is invested in MM funds with Fidelity, it appears that the insured limit is $500k. However, Lloyd's has additional Fidelity insurance available, below.
Fidelity language as of today: "Assets held in your Fidelity Brokerage Account: Fidelity’s brokerage businesses (Fidelity Brokerage Services LLC and National Financial Services LLC (NFS)) are members of the Securities Investor Protection Corporation (SIPC), and brokerage accounts maintained with Fidelity are protected by SIPC, which protects brokerage accounts of each customer when a brokerage firm is closed due to bankruptcy or other financial difficulties and customer assets are missing from accounts. SIPC protects brokerage accounts of each customer up to $500,000 in securities, including a limit of $250,000 on claims for cash. Money market funds held in a brokerage account are considered securities. For more information on SIPC coverage, please review the brochure “How SIPC Protects You” available for free download at www.sipc.org
In addition to SIPC protection, Fidelity, through NFS, provides its brokerage customers with additional "excess of SIPC" coverage from Lloyd's of London together with other insurers1. The excess of SIPC coverage would only be used when SIPC coverage is exhausted. Like SIPC, excess of SIPC protection does not cover investment losses in customer accounts due to market fluctuation. It also does not cover other claims for losses incurred while broker-dealers remain in business. Total aggregate excess of SIPC coverage available through Fidelity's excess of SIPC policy is $1 billion. Within Fidelity's excess of SIPC coverage, there is no per account dollar limit on coverage of securities, but there is a per account limit of $1.9 million on coverage of cash awaiting investment. This is the maximum excess of SIPC protection currently available in the brokerage industry.
Both SIPC and Excess of SIPC coverage is limited to securities held in brokerage positions, including mutual funds if held in your brokerage account and securities held in book entry form. Neither SIPC nor the additional coverage protects against loss of market value of the securities.
Note: Certain assets are not eligible for SIPC protection. Among the assets typically not eligible for SIPC protection are commodity futures contracts, precious metals, as well as investment contracts (such as limited partnerships) and fixed annuity contracts that are not registered with the U.S. Securities and Exchange Commission under the Securities Act of 1933."
Oct 14, 2013, 10:10 pm
#1399
Join Date: Jul 2013
Posts: 53
Further, I saw it in writing (can't put my hands on it this moment) and was told by Fidelity reps, mine and the promo man on the phone, that none of this $100k (or whatever amount and bonus the depositor tries for) can be any form of retirement $. You can't deposit 100k into Roth/Sep for example, and call that the 100k for the bonus. Likewise, can't transfer retirement $ to individual account and have it "new $."
****I've looked out there...I don't receive regular paychecks, so the direct deposit checking account promo isn't viable for me. Are there any other noncredit card promos similar to Fidelity anyone knows of? Brokerage, banks, etc.? I have too many Chase and Citi cards and already have to tap dance with the reconsideration line for approval. I did switch electric providers for a nice AA bonus which I look forward to seeing post****
****I've looked out there...I don't receive regular paychecks, so the direct deposit checking account promo isn't viable for me. Are there any other noncredit card promos similar to Fidelity anyone knows of? Brokerage, banks, etc.? I have too many Chase and Citi cards and already have to tap dance with the reconsideration line for approval. I did switch electric providers for a nice AA bonus which I look forward to seeing post****
Oct 14, 2013, 10:33 pm
#1400
FlyerTalk Evangelist
Join Date: Jul 2003
Location: Florida
Posts: 29,767
I was in my local Fidelity branch to discuss various investment strategies with the branch manager (previously assigned rep moved on to greener pastures). We morphed into my favorite topic which is collecting miles and points. I presented the above scenario to see his reaction. Not having a clue he called the promotion department and spoke to a supervisor. The Promotion Department supervisor stated that so long as the account maintained the $100K minimum there would be no claw back of miles or disqualification in future periods.
Caveat, I received nothing in writing.
Caveat, I received nothing in writing.
We are talking about if one removes the funding after fulfilling the 6 months condition, especially if the funding is cash, how long one must wait to start again the next promo.
The consensus or understanding has been, the next eligible period starts 12 months from last funding. That we all agree.
However, there is a major caveat or hidden rule now being reported by lanago2 that if you withdrew the $100K, you would need 12 months, i.e. 18 months from the first funding, to become eligible for another promo - 6 + 6 = 12 to be qualify again BUT since you have withdrawn the fund, now if you deposit again, Fido does not consider it is "new money" unless 12 months have been lapse from the withdrawal - so that is another 6 months add to it, making it 18 months.
I must say if this is true, then Fido is very sleazy in not specifying this in their offer languages. The only thing mentioned in T&Cs is the incoming fund must stay at Fido for 6 months.
I dont think it is anywhere clear based on what you described above.
Oct 14, 2013, 10:53 pm
#1401
Join Date: May 2004
Programs: AA lifetime platinum, Jet Blue Mosaic
Posts: 438
Further, I saw it in writing (can't put my hands on it this moment) and was told by Fidelity reps, mine and the promo man on the phone, that none of this $100k (or whatever amount and bonus the depositor tries for) can be any form of retirement $. You can't deposit 100k into Roth/Sep for example, and call that the 100k for the bonus. Likewise, can't transfer retirement $ to individual account and have it "new $."
****I've looked out there...I don't receive regular paychecks, so the direct deposit checking account promo isn't viable for me. Are there any other noncredit card promos similar to Fidelity anyone knows of? Brokerage, banks, etc.? I have too many Chase and Citi cards and already have to tap dance with the reconsideration line for approval. I did switch electric providers for a nice AA bonus which I look forward to seeing post****
****I've looked out there...I don't receive regular paychecks, so the direct deposit checking account promo isn't viable for me. Are there any other noncredit card promos similar to Fidelity anyone knows of? Brokerage, banks, etc.? I have too many Chase and Citi cards and already have to tap dance with the reconsideration line for approval. I did switch electric providers for a nice AA bonus which I look forward to seeing post****
Oct 14, 2013, 10:57 pm
#1402
Join Date: May 2004
Programs: AA lifetime platinum, Jet Blue Mosaic
Posts: 438
Further, I saw it in writing (can't put my hands on it this moment) and was told by Fidelity reps, mine and the promo man on the phone, that none of this $100k (or whatever amount and bonus the depositor tries for) can be any form of retirement $. You can't deposit 100k into Roth/Sep for example, and call that the 100k for the bonus. Likewise, can't transfer retirement $ to individual account and have it "new $."
****I've looked out there...I don't receive regular paychecks, so the direct deposit checking account promo isn't viable for me. Are there any other noncredit card promos similar to Fidelity anyone knows of? Brokerage, banks, etc.? I have too many Chase and Citi cards and already have to tap dance with the reconsideration line for approval. I did switch electric providers for a nice AA bonus which I look forward to seeing post****
****I've looked out there...I don't receive regular paychecks, so the direct deposit checking account promo isn't viable for me. Are there any other noncredit card promos similar to Fidelity anyone knows of? Brokerage, banks, etc.? I have too many Chase and Citi cards and already have to tap dance with the reconsideration line for approval. I did switch electric providers for a nice AA bonus which I look forward to seeing post****
Oct 15, 2013, 7:19 am
#1403
Join Date: Apr 2007
Posts: 499
I was in my local Fidelity branch to discuss various investment strategies with the branch manager (previously assigned rep moved on to greener pastures). We morphed into my favorite topic which is collecting miles and points. I presented the above scenario to see his reaction. Not having a clue he called the promotion department and spoke to a supervisor. The Promotion Department supervisor stated that so long as the account maintained the $100K minimum there would be no claw back of miles or disqualification in future periods.
Caveat, I received nothing in writing.
Caveat, I received nothing in writing.
So the actual question is when can one remove money from the account and still be able to cash in on 50,000 miles on an annual basis, more or less.
Oct 15, 2013, 1:15 pm
#1404
Join Date: May 2004
Programs: AA lifetime platinum, Jet Blue Mosaic
Posts: 438
That could get tricky. What if one puts in $100,000 a couple of years ago, another $100,000 last year and then sometime takes out $100,000 which maintains the minimum, etc. . . . ?
So the actual question is when can one remove money from the account and still be able to cash in on 50,000 miles on an annual basis, more or less.
So the actual question is when can one remove money from the account and still be able to cash in on 50,000 miles on an annual basis, more or less.
What constitutes new money is a different question. However, assume the following scenario;
I have $100K in an account and deposit another $100K to earn 50K miles in year one.
I could then withdraw $100K immediately after qualifying for the 50K miles (or sooner)
There does not appear to be any reason why I couldn't wait for year 2, recycle the $100K previously withdrawn and re qualify for another 50K miles.
Of course some people might decide to use Fidelity for their investment platform and keep adding money to their accounts. I know the thought of actually using Fidelity to further one's investment goals is blasphemy. In fact after reading this thread I am almost ashamed to admit that I have an active account a Fidelity
Oct 15, 2013, 2:11 pm
#1405
Join Date: Aug 2006
Posts: 756
Unless Fido changed the rules recently (which could be true if too many people have been playing games with the deposit rules and T&C), I've done this deal twice already and keeping with the 6 month rule have not been a problem (yet), whether it was stocks, new money or old money etc. See my previous post #1361 just a few pages back for more info. and insight.
Cheers
Cheers
Oct 15, 2013, 7:32 pm
#1406
FlyerTalk Evangelist
Join Date: Jul 2003
Location: Florida
Posts: 29,767
You have met the requirement so long as you maintain at least $100,000 for the 6 month holding period.
What constitutes new money is a different question. However, assume the following scenario;
I have $100K in an account and deposit another $100K to earn 50K miles in year one.
I could then withdraw $100K immediately after qualifying for the 50K miles (or sooner)
There does not appear to be any reason why I couldn't wait for year 2, recycle the $100K previously withdrawn and re qualify for another 50K miles.
Of course some people might decide to use Fidelity for their investment platform and keep adding money to their accounts. I know the thought of actually using Fidelity to further one's investment goals is blasphemy. In fact after reading this thread I am almost ashamed to admit that I have an active account a Fidelity
What constitutes new money is a different question. However, assume the following scenario;
I have $100K in an account and deposit another $100K to earn 50K miles in year one.
I could then withdraw $100K immediately after qualifying for the 50K miles (or sooner)
There does not appear to be any reason why I couldn't wait for year 2, recycle the $100K previously withdrawn and re qualify for another 50K miles.
Of course some people might decide to use Fidelity for their investment platform and keep adding money to their accounts. I know the thought of actually using Fidelity to further one's investment goals is blasphemy. In fact after reading this thread I am almost ashamed to admit that I have an active account a Fidelity
Your conversation with your branch manager and your subsequent posts have done nothing to address the issue brought up by lanago2. He has brought up 2 issues - the 1st one is the one I and others try to get to the bottom of it, the other is about IRA account not eligible and that is really non-issue because that is very clearly stated in the T&Cs. The main reason that IRA account is not eligible is because outside the "organic growth", any added value from outside the account is considered a contribution - how can you value the $ amount of the miles for the tax reporting purpose? You cannot. Hence the ineligibility. Years ago there was incentives in $ also offered for IRA account, and that $ was counted as contribution to the IRA for that year.
Oct 19, 2013, 12:57 am
#1407
Join Date: Jul 2013
Posts: 53
Not that it really matters, Happy, but "he" is a "she."
Kayjay, there was no wiggle room on the 6 months in account rule in order to get the 50,000 miles. They were very clear if I withdrew it before staying in 6 months, 50,000 AA miles would be withdrawn.
I went up the food chain on all this and could only gain the $1000 concession in lieu of the promotion. For which I received the 1099. I believe that the only reason I was able to negotiate $1000 was because I have other accounts with Fidelity. They didn't want me to close my accounts which I threatened to do because I felt that they treated new customers well but existing ones poorly.
12 months after $ was out of Fidelity, I contacted both my rep and promo person to verify I'd get the miles. I redeposited right at 12 months. Miles posted. And yes, I do legitimately use Fidelity as a brokerage company. I just like the miles/points game and free stuff!
The bottom line is that it is really an 18 month rule rather than a 12 month rule. This is true unless you have an additional $100,000 to contribute as new Fidelity money each 12 months. Clearly, the intent of this promotion by Fidelity was to encourage customers to deposit an additional $100,000 annually, not to recycle it every 18 months. So I really shouldn't get too worked up about it when I understand what I believe their business intention is. If you have the annual additional $100 k, this whole discussion is moot.
Once interest rates go up and if that $100,000 can earn more elsewhere, even in a CD for example, than the value of the 50,000 miles on AA is devalued and this whole strategy will be silly. While % rates are low, keeping the cash liquid as an emergency fund and to play "get the miles" works for me.
Kayjay, there was no wiggle room on the 6 months in account rule in order to get the 50,000 miles. They were very clear if I withdrew it before staying in 6 months, 50,000 AA miles would be withdrawn.
I went up the food chain on all this and could only gain the $1000 concession in lieu of the promotion. For which I received the 1099. I believe that the only reason I was able to negotiate $1000 was because I have other accounts with Fidelity. They didn't want me to close my accounts which I threatened to do because I felt that they treated new customers well but existing ones poorly.
12 months after $ was out of Fidelity, I contacted both my rep and promo person to verify I'd get the miles. I redeposited right at 12 months. Miles posted. And yes, I do legitimately use Fidelity as a brokerage company. I just like the miles/points game and free stuff!
The bottom line is that it is really an 18 month rule rather than a 12 month rule. This is true unless you have an additional $100,000 to contribute as new Fidelity money each 12 months. Clearly, the intent of this promotion by Fidelity was to encourage customers to deposit an additional $100,000 annually, not to recycle it every 18 months. So I really shouldn't get too worked up about it when I understand what I believe their business intention is. If you have the annual additional $100 k, this whole discussion is moot.
Once interest rates go up and if that $100,000 can earn more elsewhere, even in a CD for example, than the value of the 50,000 miles on AA is devalued and this whole strategy will be silly. While % rates are low, keeping the cash liquid as an emergency fund and to play "get the miles" works for me.
Last edited by lanago2; Oct 19, 2013 at 1:18 am Reason: Added additional info
Oct 19, 2013, 5:56 am
#1408
Join Date: Jul 2003
Location: WAS/ Silver Spring, MD,USA
Programs: UA/AA
Posts: 857
[QUOTE=lanago2;21632472]
Once interest rates go up and if that $100,000 can earn more elsewhere, even in a CD for example, than the value of the 50,000 miles on AA is devalued and this whole strategy will be silly. While % rates are low, keeping the cash liquid as an emergency fund and to play "get the miles" works for me.[/QUOTE
Why would the interest rate environment devalue the AA miles? Perhaps you are referring to a future opportunity cost.
You can still hold funds in a CD earning the prevailing interest rate in your Fidelity account while aging the account for the six months required.
While I agree rates are rather low and receiving tax free miles in lieu of $ is nice, it is possible to engage in both pursuits simultaneously.
Once interest rates go up and if that $100,000 can earn more elsewhere, even in a CD for example, than the value of the 50,000 miles on AA is devalued and this whole strategy will be silly. While % rates are low, keeping the cash liquid as an emergency fund and to play "get the miles" works for me.[/QUOTE
Why would the interest rate environment devalue the AA miles? Perhaps you are referring to a future opportunity cost.
You can still hold funds in a CD earning the prevailing interest rate in your Fidelity account while aging the account for the six months required.
While I agree rates are rather low and receiving tax free miles in lieu of $ is nice, it is possible to engage in both pursuits simultaneously.
Oct 19, 2013, 7:39 am
#1409
Join Date: Apr 2007
Posts: 499
Not that it really matters, Happy, but "he" is a "she."
12 months after $ was out of Fidelity, I contacted both my rep and promo person to verify I'd get the miles. I redeposited right at 12 months. Miles posted. And yes, I do legitimately use Fidelity as a brokerage company. I just like the miles/points game and free stuff!
The bottom line is that it is really an 18 month rule rather than a 12 month rule. This is true unless you have an additional $100,000 to contribute as new Fidelity money each 12 months. Clearly, the intent of this promotion by Fidelity was to encourage customers to deposit an additional $100,000 annually, not to recycle it every 18 months. So I really shouldn't get too worked up about it when I understand what I believe their business intention is. If you have the annual additional $100 k, this whole discussion is moot.
12 months after $ was out of Fidelity, I contacted both my rep and promo person to verify I'd get the miles. I redeposited right at 12 months. Miles posted. And yes, I do legitimately use Fidelity as a brokerage company. I just like the miles/points game and free stuff!
The bottom line is that it is really an 18 month rule rather than a 12 month rule. This is true unless you have an additional $100,000 to contribute as new Fidelity money each 12 months. Clearly, the intent of this promotion by Fidelity was to encourage customers to deposit an additional $100,000 annually, not to recycle it every 18 months. So I really shouldn't get too worked up about it when I understand what I believe their business intention is. If you have the annual additional $100 k, this whole discussion is moot.
The reason I ask is that reading the T&C the two rules that are clear are the six month holding in the account and the fact that the offer cannot be repeated again within a twelve month period. That does not explicitly exclude withdrawing after 6 months and taking up a new offer after 12 months from the previous exercise (and 6 months after withdrawing).
I have no experience that says otherwise than your understanding, but unlike some of the conditions, an 18 month cycle is not clearly stated as such in anything Fidelity has put out in writing.
Oct 19, 2013, 8:35 am
#1410
Join Date: Oct 2011
Location: North Carolina
Posts: 613
Why would the interest rate environment devalue the AA miles? Perhaps you are referring to a future opportunity cost.
You can still hold funds in a CD earning the prevailing interest rate in your Fidelity account while aging the account for the six months required.
While I agree rates are rather low and receiving tax free miles in lieu of $ is nice, it is possible to engage in both pursuits simultaneously.
You can still hold funds in a CD earning the prevailing interest rate in your Fidelity account while aging the account for the six months required.
While I agree rates are rather low and receiving tax free miles in lieu of $ is nice, it is possible to engage in both pursuits simultaneously.