How to Close Fidelity Account

Closing a Fidelity account can be a simple process, but it requires careful attention to ensure that all necessary steps are followed. This guide will walk you through the process of closing your Fidelity account, providing detailed explanations and additional resources to help you make an informed decision.

Preparing to Close Your Fidelity Account

Before proceeding to close your Fidelity account, it's important to prepare adequately. Here are some steps you should consider:

1. Evaluate Your Decision

• Assess Your Alternatives: Before closing your account, consider if there are alternatives that might address your concerns or needs, such as changing your investment strategy, selecting different Fidelity products, or consulting a financial advisor.
• Understand the Implications: Closing an investment account could have tax implications. Make sure to review whether there will be any tax consequences. Consult with a tax advisor if you’re unsure.

2. Gather Necessary Information

• Account Details: Make sure you have your account number and any relevant account information.
• Personal Identification: You may need to provide personal identification to verify your identity.
• Account Statements: Retrieve and save your recent account statements for your records. This will be useful for future reference or if you need proof for tax purposes.

Steps to Close Your Fidelity Account

Once you’ve prepared, you can proceed with the following steps to close your Fidelity account:

Step 1: Contact Fidelity

• Phone Support: Call Fidelity customer service. Fidelity’s customer support can provide guidance and initiate the account closure process for you. Use their main customer service number to reach a representative.
• Online Chat: Alternatively, if you prefer not to communicate via phone, Fidelity’s website offers an online chat option with their customer support.

Step 2: Secure All Necessary Permissions

• Verify Account Ownership: Fidelity will require you to verify your identity. Be ready to provide your Social Security number (SSN) or account number.
• Joint Accounts: If it's a joint account, ensure all account holders are present or reachable to authorize the closure.

Step 3: Liquidate Assets

• Transfer Assets: If you wish to retain your assets, instruct Fidelity to transfer your securities to another brokerage firm. Be sure to provide the information for the receiving brokerage.
• Sell Investments: Alternatively, you may choose to sell your investments, which will result in cash being deposited into your account for withdrawal before closing.
• Settlement Period: Be aware that securities sales require a settlement period. Ensure all transactions are complete before closing the account.

Step 4: Close the Account

• Verbal Confirmation: Inform the Fidelity representative that you wish to close the account. They may ask for the reasons behind your decision, which is typically a simple survey question for service improvements.
• Final Authorization: Provide your final authorization to proceed with the closure.

Step 5: Confirm Account Closure

• Written Confirmation: Fidelity should send you a confirmation of the account closure once processed. Save this for your records.
• Check for Residual Amounts: Make sure there are no pending transactions or residual amounts left to be settled.

After Closing Your Fidelity Account

Once your account has been closed, there are additional considerations and steps you might want to follow:

Financial Review

• Review Your Portfolio: Check your investment strategy and rebalance your portfolio as necessary with your new brokerage.
• Assess Financial Goals: Re-evaluate your financial goals and strategies with the recent change in your investment accounts.

Manage Tax Implications

• Capital Gains/Losses: Calculate any capital gains or losses incurred from liquidating your investments.
• Consult a Professional: Consider speaking with a tax professional to ensure you fulfill any tax obligations that might arise.

Security Measures

• Update Records: Remove any saved Fidelity account information from financial tracking apps or notes to avoid confusion or potential security risks.
• Monitor Correspondence: Keep an eye on any final correspondence from Fidelity regarding your former account.

Common Questions About Closing Fidelity Accounts

Can I Close My Fidelity Account Online?

While Fidelity offers a robust online platform, closing an account typically requires direct communication with their representatives through phone support or chat to ensure all aspects of the closure are handled appropriately.

What Are the Fees for Closing a Fidelity Account?

Fidelity does not typically charge account closure fees; however, there might be fees involved if you choose to transfer securities to another brokerage (ACAT fees). Always confirm any potential fees with the representative.

What If I Change My Mind After Initiating Closure?

If you decide to keep your account after initiating the closure, contact Fidelity immediately. They may be able to halt the process if it has not been finalized, though this depends on the stage of the closure.

How Long Does It Take to Close a Fidelity Account?

The closure process can vary based on the complexity of pending transactions and settlements. Generally, expect a few business days to a couple of weeks for asset liquidations, transfers, and official closure.

Conclusion

Closing your Fidelity account is a systematic process that requires careful consideration, preparation, and communication with Fidelity representatives. By following the outlined steps, you can ensure a smooth transition whether moving to another brokerage or altering your investment strategy. Remember, planning ahead and consulting professionals where necessary can help navigate potential tax implications or meet financial objectives effectively.

As you consider other financial pursuits or account options, explore the rest of our website for more detailed guides and resources tailored to your investment needs and questions.