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Fidelity Automatic Investing Plan
2023: Does Fidelity offer automatic investment plan (AIP) contributions? Fidelity Investments dollar cost
averaging program (DCA) setup and review. Fees on ETFs, stocks, and mutual funds
weekly/monthly/quarterly recurring investing.
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Does Fidelity Offer an Automatic Investment Plan?
If you want to save hours of work transferring cash into a brokerage account and making purchases of mutual funds, Fidelity has an answer for you: with its user-friendly website, it’s possible to set up recurring deposits and investments. Keep reading. We’ll show you everything you need to know.
Systematic Deposits on Fidelity
At Fidelity, it’s possible to set up periodic investments or deposits of cash. If you just want to establish recurring deposits of cash without actually making any investments, hover over the Accounts & Trade tab in the top menu of the website. In the drop-down menu that appears, select Transfers.
On the next page, there will be several links for all sorts of financial transfers. The one you want in this case is Deposit, withdraw, or transfer money. Click on this link and you’ll get the broker’s cash transfer form.
On the online transfer form, just fill in the requested details, including the incoming and outgoing accounts, transfer frequency, and transfer amount. The transfer field has an optional end date if you want the recurring transfers to end at some point in the future.
If there’s a bank account you want to use that hasn’t yet been linked, you can link it from the transfer page. Just click on the From field and select the option to link a bank account to a Fidelity account.
Instead of periodic cash deposits, it’s possible to establish periodic cash withdrawals using the same digital form. A Fidelity account that has been put into lockdown mode will not be eligible for recurring withdrawals.
Recurring Investments on Fidelity
If you want to actually invest the cash you’re transferring in, you can do so (in mutual funds only). Go back to the Transfers page mentioned above and this time select the Manage automatic investments link.
On the next page, click on the button labeled “Set up an automatic investment.” Doing so will create yet another page. You’ll see Fidelity’s autopilot investment form. It’s really easy to fill out.
Purchases of additional shares of mutual funds can be made with either an external bank account or the brokerage account’s core cash position. Notice that we said “additional shares.” First, you must actually own shares of a mutual fund before setting up systematic purchases.
The frequency of recurring purchases can be monthly, quarterly, or set to a custom schedule. As with periodic deposits, the investing schedule can be established with an end date if desired.
If an automatic investing schedule skips two times due to unavailable cash, Fidelity will cancel it.
Because whole-dollar amounts are used in Fidelity’s systematic purchase plan, it’s a form of dollar-cost averaging.
Brokers With Automatic Investing
Fine Print
Fidelity permits many account types to enroll in autopilot investing. These include both taxable and non-taxable accounts.
Mutual funds with front-end loads are not eligible for periodic investing.
It takes about 2 to 4 business days for an auto investing request to become active, assuming the funding source is already linked. If it hasn’t been linked yet, it will take longer.
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Other Ways to Auto Invest on Fidelity
Securities accounts at Fidelity can sign up for free DRIP service that will automatically convert cash dividends into additional shares of the stocks or ETFs that paid them.
Recurring deposits of cash into a robo account or full-service managed account will automatically be invested according to the investment plan that was established on the account.
Fidelity has a direct deposit service that permits an account to electronically deposit a paycheck, Social Security check, or other recurring source of funds. If it goes into a managed account, it’s automatically invested.
Chad Morris is a financial writer with more than 20 years experience
as both an English teacher and an avid trader. When he isn’t writing
expert content for Brokerage-Review.com, Chad can usually be found
managing his portfolio or building a new home computer.
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