How to set up automatic investments on Fidelity

Fidelity lets you set up automatic investments through a feature called Automatic Investment Plan (AIP), which moves money from your bank account into your Fidelity account on a schedule you choose. You can invest in individual stocks, mutual funds, or exchange-traded funds (ETFs) on a weekly, bi-weekly, or monthly basis. The process takes about 10 minutes to set up through your Fidelity account online or through the mobile app, and Fidelity does not charge a fee for this service.

The core steps are: link your bank account to Fidelity, choose what you want to invest in, set your investment amount and frequency, and confirm the setup. Once active, the money transfers automatically on your chosen date, and you can pause, change, or cancel the plan at any time.

Key Takeaways

  • Automatic Investment Plans on Fidelity transfer money from your linked bank account into investments on a schedule you set — weekly, bi-weekly, or monthly.
  • You need a funded Fidelity account and a linked bank account; the first transfer typically takes 3 to 5 business days to complete.
  • You can invest in stocks, mutual funds, or ETFs, and you can set up separate automatic plans for different investments if you want.
  • Fidelity charges no fee for automatic investments, but your bank may charge a fee for the transfer itself — check your bank's policy.
  • You can change your investment amount, frequency, or target at any time, and pausing or stopping a plan takes one click in your account settings.

Linking your bank account to Fidelity

Before you can set up automatic investments, you need to connect a bank account to your Fidelity account. Log into your Fidelity account online or open the mobile app, then go to Account Settings and select Funding or Bank Accounts. Choose Link a Bank Account and enter your bank's routing number and your account number. Fidelity will verify the account by depositing two small amounts (usually under $1 each) into your bank account within 1 to 2 business days.

Once the deposits appear, return to Fidelity and confirm the amounts. This verification step protects both you and Fidelity by confirming you own the bank account. After verification, your bank account is linked and ready to use for automatic transfers. If you have multiple bank accounts, you can link more than one and choose which one to use for each automatic investment plan.

Choosing your investment and setting the amount

Once your bank account is linked, go to Accounts & Trade in your Fidelity account and select Automatic Investments or Automatic Investment Plan. You will be asked to choose what you want to invest in — a specific stock ticker, a mutual fund, or an ETF. Search by the fund name or ticker symbol. Fidelity will show you the fund's expense ratio, performance history, and a brief description so you can review it before you commit.

Next, enter the dollar amount you want to invest each time the plan runs. This can be as little as $1 or as much as your bank account allows. Fidelity does not set a minimum, though some mutual funds have their own minimums for automatic plans (usually $50 to $100). You can set up multiple automatic investment plans targeting different funds or stocks if you want to split your money across several investments.

Setting frequency and confirming the plan

Choose how often you want to invest: weekly, bi-weekly, or monthly. If you choose monthly, you can pick the specific day of the month (for example, the 15th or the last day). Fidelity will show you a preview of your plan — the investment, the amount, and the dates the transfers will occur. Review this carefully to make sure everything is correct.

When you are ready, click Confirm or Submit. Your automatic investment plan is now active. The first transfer will happen on your chosen date, and it typically takes 3 to 5 business days for the money to move from your bank account to Fidelity and then into your chosen investment. You will receive a confirmation email with the plan details, and you can view the plan anytime in your account settings.

What happens after your plan starts

Once your automatic investment plan is running, money moves from your bank account to Fidelity on your chosen schedule. Fidelity buys your chosen investment at the market price on that day, which means the price you pay per share or unit will vary depending on market conditions. This is called dollar-cost averaging, and it can help reduce the impact of market ups and downs over time because you are investing the same dollar amount at different prices.

You can watch your investments grow in your Fidelity account dashboard. Each transaction appears in your account history with the date, amount, and price paid. If you need to pause the plan temporarily, change the amount or frequency, or stop it entirely, you can do so in your account settings without penalty. Fidelity will send you a confirmation email whenever you make a change.

Pausing, changing, or stopping your automatic plan

To pause your automatic investment plan, log into your Fidelity account, go to Accounts & Trade, and select Automatic Investments. Find the plan you want to pause and click Pause. The plan will not run on your next scheduled date, but it remains saved in your account so you can restart it later without setting it up again.

To change the amount, frequency, or investment target, click Edit on the plan. You can update any detail and confirm the change. To stop the plan permanently, click Cancel or Delete. Fidelity will ask you to confirm the cancellation, and once you do, the plan is removed from your account. No future transfers will occur, but any money already invested stays in your account.

Fees and what to watch for

Fidelity does not charge a fee to set up or run an automatic investment plan. However, your bank may charge a fee for each transfer out of your account — check your bank's fee schedule or account agreement. Additionally, the mutual funds or ETFs you invest in may have their own expense ratios, which are annual fees charged by the fund manager. These are deducted from the fund's value and are not separate charges to you, but they do reduce your returns over time.

If your bank account does not have enough money on the scheduled transfer date, the transfer will fail and Fidelity will typically retry it a few days later. If it fails again, Fidelity may pause or cancel the plan. To avoid this, keep enough money in your bank account to cover your automatic investment plus any other bills due around that date.

Frequently Asked Questions

Can I set up automatic investments in a retirement account like an IRA?

Yes. Fidelity allows automatic investments in IRAs, 401(k)s, and other retirement accounts. The process is the same — link your bank account, choose your investment, set the amount and frequency, and confirm. The money transfers from your bank to your retirement account, and the investment rules for that account type still apply (for example, contribution limits for IRAs).

What if I want to invest different amounts on different dates?

Automatic Investment Plans on Fidelity use the same amount and frequency each time. If you want to invest different amounts on different dates, you can set up multiple automatic plans — for example, one for $200 on the 1st and another for $100 on the 15th. Alternatively, you can make manual investments whenever you want in addition to your automatic plan.

How long does it take for my first automatic investment to go through?

The first transfer typically takes 3 to 5 business days from your scheduled date. This is because the money must move from your bank account to Fidelity, and then Fidelity must buy your chosen investment at the market price. Subsequent transfers usually follow the same timeline. Weekends and holidays may add extra days.

Can I change my automatic investment plan if the market drops?

Yes. You can pause, edit, or cancel your plan at any time, even if the market is down. However, pausing or stopping your plan means you will miss out on dollar-cost averaging, which can actually work in your favor during market downturns because you buy more shares at lower prices. Many investors keep their plans running through market volatility for this reason.

What happens to my automatic investments if I close my Fidelity account?

If you close your Fidelity account, all automatic investment plans are canceled. Any money already invested stays in your account until you withdraw it or transfer it elsewhere. If you plan to close your account, cancel your automatic plans first to avoid confusion, or contact Fidelity to confirm what happens to your investments during the closure process.