$x of your recent deposit will be available to withdraw on DATE
Summary of User’s Issue and Solutions Discussed:
- The user is concerned about the availability of funds deposited on May 2nd for withdrawal on May 3rd, specifically regarding the timing of when the funds will be settled to avoid a Good Faith Violation if they sell securities with those funds.
- A representative from Fidelity indicated that the funds will likely settle in the morning on May 3rd, but this timing is not guaranteed.
- Fidelity provided information about Good Faith Violations, explaining that trades made with uncollected funds may prompt warnings and advising the user to be cautious when placing trades.
- As a preventative measure for future deposits, Fidelity suggested using wire transfers or direct deposits from other institutions, which do not incur fees on their end and make funds available immediately upon receipt.
Here’s the full thread
so I recently made my monthly deposit and my balance tells me that all of what I deposited will be available to withdraw on May 3rd.
Does that mean it will be settled by the start of May 3rd, or sometime before the end of the day. I’m trying to avoid incurring a good faith violation for if I sell something bought with those funds on May 3rd
Got an answer from chatting with rep fidelity site:
essentially, they told me it will probably settle in the morning when banks open, but that can’t be guaranteed
Thank you for reaching out here. It sounds like you’ve got your answer, though I’m happy to provide some additional information.
As you’re already familiar with, clients can place trades for most securities online up to certain dollar limits during collection. It’s important to know that trading with these funds will prompt a warning regarding Good Faith Violations (GFVs). Therefore, if any portion of your funds is still uncollected, you’ll typically be warned prior to placing the trade.
You can learn more about these potential violations and how to avoid them by visiting the link below.
Avoiding cash trading violations: https://www.fidelity.com/learning-center/trading-investing/trading/avoiding-cash-trading-violations
If you’d prefer to avoid collection periods in the future, you can initiate a wire transfer or direct deposit from an outside institution into your Fidelity account. We do not charge a fee to receive these types of deposits, and the funds are available in full as soon as they are received. The sending institution may charge a fee, so you’ll want to check with them first.
If we can help with anything else, just let us know. We’ll be around to answer your questions. 🟢