Earn 50,000 American Miles With Fidelity Before September 30, 2012

by on July 3, 2012 · 22 comments

in American, Fidelity

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As I’ve discussed in the past, brokerage accounts can be a great way to rack up a ton of miles on money you’d be investing anyway. I personally was able to earn 50,000 Delta and 50,000 United miles with Fidelity earlier this year for opening non-retirement brokerage accounts.

I am not eligible for this other offer of 50,000 American miles because according to the Promotional Offer Rules, promotional offers are limited to one per individual per rolling 12 months and this one is not transferable or valid in conjunction with any other Fidelity promotional offer. So if you scored the other mileage deals in the last year, like I did, you’re most likely out of luck for now since the offer expires September 30, 2012 and initial and subsequent deposits must be made within 90 days of account opening.

However, if you’re a diehard Oneworld member and were waiting for an American Airlines offer, your time has come. This offer for 50,000 American miles, like the one for United, requires a certain amount of funding to hit the full mileage mark in the following rungs:

Deposit Amount: $25,000+
Mileage Earned: 15,000

Deposit Amount: $50,000+
Mileage Earned: 25,000

Deposit Amount: $100,000
Mileage Earned: 50,000

The Cash-Strapped Shortcut
In the past people have been able to get around the $100,000 requirement by depositing and withdrawing in smaller increments until you hit the $100,000 mark. For example, you could do it in $20,000 cycles depositing and withdrawing – all that matters is that $100,000 is deposited into the account in the required time period. Read through this Flyertalk thread to see how people have managed it on small budgets – of course this is much easier if you can just deposit in lump sums and the miles generally post much quicker than 8 weeks.

You can read how I did it as well for some more insights – and to be reassured that I got my miles in the end!

I understand not everyone has this type of cash accessible, but if you do it can be extremely profitable to take advantage of these deals since the miles post so quickly (FYI I do not have any business relationship with Fidelity for recommending these promotions).
Here are the rest of the Terms and Conditions:

Promotional Offer Rules:
This promotional offer is only available to new or existing Fidelity brokerage account customers opening or depositing new assets into a joint or individual nonretirement Fidelity Account®. This offer expires September 30, 2012, 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; 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); college investment trust accounts; 529 college savings plan accounts; annuities; 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 90 days of Fidelity account opening. For new money deposited into existing accounts, all deposits must be made within 90 days of registering for the offer.

Fidelity Investments and American Airlines are not affiliated.

Fidelity Brokerage Services LLC, Member NYSE, SIPC

American Airlines reserves the right to change the AAdvantage® program and its terms and conditions at any time without notice, and to end the AAdvantage® program with six months’ notice. Any such changes may affect your ability to use the awards or mileage credits that you have accumulated. Unless specified, AAdvantage® miles earned through this promotional offer do not count toward elite-status qualification or Million MilerSM status. American Airlines is not responsible for products or services offered by other participating companies. For complete details about the AAdvantage® program, visit This content will appear in a pop–up window.

Disclaimer: The responses below are not provided or commissioned by the bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser's responsibility to ensure all posts and/or questions are answered.

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  • Jeff

    I have been reading through a detailed flyertalk forum on this subject and it appears that Fidelity has shut down the opportunity to “cycle” cash subsequent to April 2012.

    I received the AA and Delta bonuses in 2011 from cycling and just applied for the United offer a few days ago (after waiting 12 months)…. I havent yet received an email from Fido informing me im not eligible.

  • Jrice728

    The flyertalk thread in your post was closed over 2 months ago. The new thread can be accessed at the below address and indicates that the loophole of cycling funds to reach the $100k threashold has been stopped. Could you please comment or update the post?

  • C0ldlimit

    “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” – Considering the opportunity cost (say 0.8% APY), the promotion becomes more like purchasing AA miles at a discount. It might be useful to add this analysis in your post.

  • thepointsguy

    It’s aways been a risk/loophole as I mentioned and never a guarantee to cycle. But I’ll fix the link to add the new thread

  • thepointsguy

    You could also invest it and turn a profit, though that clearly has its risks. In my experience the bonus miles post much quicker than 6 months and I’ve moved the majority of money out and never had them taken back. Though I can’t guarantee that would be anyone’s experience here

  • SadPanda

    I can only say my own experience. I attempted doing this via 10k deposits in the last couple months, and it did not work. Was really really hoping for 50k United miles!

  • PJ

    100K at .8 % for 6 months = 400 before tax I would put in 100K for every account I have with Fidelity to get 50K United miles 24/7/365 . It is a no brainer if you have idle money sitting around

  • Goaway

    I am only doing credit card bonuses because last year Citibank sent a 1099 form, taxing miles earned through accounts. I would factor in the risk factor/time needed clearing up your taxes in addition to the actions needed to earn the offer, and see if it is still worth it to you!

  • Mr. Everyday Dollar

    As an existing Fidelity and AA account holder I signed up for this promotion. Granted, I don’t have $100k laying around so I was planning on being creative and cycling $10k-$20k into and out of my account. I’m reading that this doesn’t work and that the funds have to stay in the account for 6 months. Anyone still planning on trying to cycle?

    Mr. Everday Dollar

  • Andrew

    Ouch. So $100K in bankdirect will earn 60,000 in 6mo but only 50K in Fido.

  • Quickroute

    Unfortunately the cycling funds loophole is closed and you need to keep the $ in the a/c for 6 months now :-(

  • Andrew Mao

    So as I understand, you can no longer get 100k miles double dipping, but only 50k for one of the offers? At least all the offers are now open to existing customers.

  • RP Rocket

    TPG – I have an existing Fidelity account wiht a decent size balance already. What do you think of the strategy to head into a Fidelity office and “withdrawing” a sum (say $50K) and than later re-depsosit these dollars into the account (even a different sum) via this offer

    Would this get me the miles?

  • Nathan

    FWIW, I presumed I could simply park some money at Fidelity in this manner and earn something close to the (internet account) 0.8% rate on my savings account at a credit union. The miles would be the icing on the cake. Unfortunately, after looking at the Fidelity Cash Management Account, their interest rate is a truly putrid 0.07%. Meaning, if you put $100k into to such an account for a year, you’d earn $70.00 interest, instead of the already measly $800 it’s earning at the credit union. Banks are able to borrow money from the Fed at essentially zero percent. So why should they pay interest to investors like us? Given the other hoops associated with this money parking idea, I’ve decided it’s not for me. I’d rather just apply for a couple more Citi AAdvantage credit cards, spend the money required (that I’d be spending anyway) and get 50k or 100k miles that way. Your mileage may vary! :)

  • Emerycrush

    I carefully read over the Fidelity rules regarding the AA promotion. The loophole which allowed recycling of funds to reach the $100,o00 deposit was closed. The qualifying amount must remain in the account for 6 months. I took advantage of this promotion on Sept. 23, 2011 so I have a small window of opportunity to open another account before the Sept. 30 expiration date. My plan was to withdraw almost everything from my current account and then redeposit it before Sept. 30. However, the Fidelity rep told me, after checking with his manager, that my strategy would not qualify for the promotion because this would not be considered “new” funds and their system tracks these things using your social security number. He actually told me that the airline tracks it with your social security number…ya, right! The manager reiterated all of this in a not very friendly fashion at which point I decided to close out my account completely. I will open a new one between Sept. 23 and 30th and if I am not credited with the mileage within 8 weeks of the deposit, I will give them a call…and close the account unless they give me the miles. These same rules apply to their deals with United and Delta. They do pay a puny amount on your money so it does not pay to park it there any longer than necessary.

  • TK

    Does anyone know whether Fidelity sends out 1099 forms for the miles earned from opening a fidelity account?

  • dhammer53

    Anyone know the interest rate they’re paying??

  • JP

    I just opened an account. The new cut off date for AA is March 31, 2013. This is a great opportunity for me as I am currently getting a home loan and can’t do any credit card apps. As I see it, the money can sit earning practically no interest, but you get the value of the 50K points.

    I do need to be sure that my base bank account isn’t charging me for transferring funds (they usually charge for a wire transfer but not for electronic checks).

    Also, there are some minor limits to funding the Fidelity account… you can’t just slog over all the funds the first day and then yank them back out the next day.

  • JP

    nearly nothing!

  • Leslie

    Hello, was wondering since I have already money in fidelity. I have not register for the promotion. Let say I have 50000 of new money and 50000 already in fidelity. Do you think I can pull out my current 50000. then register for the promotion. After that take the 50000 pulled out along with my new 50000 and redeposit it in. Do you think that will be ok to get the 50000 miles?

  • MD

    Points Guy,

    I just withdrew the $100K from my account and received a call from Fidelity shortly thereafter saying that the funds needed to remain in the account for 6 months. I already received my United Points. Does Fidelity have the ability to recapture the points?

  • AndyFBos

    Looks like this offer is extended / renewed until 31 March 2013

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