Mutual fund companies, which already offer check writing and money market funds that act a lot like savings accounts, are about to compete even more directly with banks to capture assets.

Fidelity Investments last week became the latest mutual fund company to take steps to form a bank which can provide trust services. Fidelity's parent company, FMR Corp., filed an application Jan. 5 with the Office of Thrift Supervision (OTS) to form Fidelity Personal Trust Co.

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