Should I open my Roth IRA With BankofAmerica or Fidelity?

Question

I already use BofA for my checking. Is one better than the other? Does it really matter? Any difference? Thanks.

Answer 1

Bank of America, as we all know, is a bank and Fidelity is a "family" of mutual funds with professional fund managers.  I also bank with Bank of America because they are banking professionals but I have some of my investments with Fidelity because they are investment professionals.  In much the same was as I wouldn't buy insurance from a bank (some sell insurance now), I do my investing (except for CD's) with investment companies not banks.

Answer 2

Bank of America will leave you alone.  Fidelity will try to jam its funds down your throat.

Answer 3

If those are your only two choices, then absolutely Fidelity!

Bank of America is horrid. And they are not a broker. So you will pay them extra fees to be a middle man for you in order to buy someone else's funds.

Just go with Fidelity. You can invest in some quite low cost Fidelity funds.

The only way you could do better is perhaps Vanguard. Their finds are even lower cost than Fidelity. But Vanguard has a $3000 account opening minimum. If you have the $3000, definitely go with Vanguard. Otherwise go with Fidelity.

Answer 4

I would go with Bank of America

Answer 5

Well both are reliable companies, but chances are they charge annual fees on your account for commissions and so on. I recently started working for a Farmers Insurance agency and they offer IRAs and annuities with NO ANNUAL FEES EVER!!!! Also, the interest will never drop below 3% and it adjust accordingly to be competitive with the rates banks are giving you.

I am not trying to make a plug! I promise! Just talk to your local Farmers agent and they can help you out!

FYI: for a Roth IRA you can start for as little as $50 a month!  

Answer 6

if you need investment advice, it matters. if you are going to manage it yourself, it matters.

if you do all the work, go with lowest cost.