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Cash Management FAQs: Cash Management Account

Fidelity Cash Management Account

  • What is the Fidelity® Cash Management Account?

    The Fidelity® Cash Management Account is a brokerage account1 for your everyday spending and short-term investing needs with all the benefits of a traditional checking account. Benefits and features include:

    • A full suite of spending and money movement features.
    • Cash balances earn interest and are eligible for FDIC insurance.2
    • FDIC insurance coverage is automatically maximized via our FDIC Deposit Sweep Program.
    • Access to short-term investments such as money market mutual funds and CDs.
    • Easy online access to your account balance and transactions.
    • The ability to link the Fidelity® Cash Management Account to your other Fidelity accounts or to your external bank or investment accounts.
    • No minimum to open and no monthly maintenance fees.
  • I already have a Fidelity brokerage account. Should I still consider a Fidelity® Cash Management Account?

    Yes, the Fidelity® Cash Management Account is intended to complement, not replace, your existing brokerage account. It lets you separate your spending activity from your investment activity.

  • What spending and money movement features are included with the Fidelity® Cash Management Account?

    The Fidelity® Cash Management Account has the following features available for your spending and money movement needs:

    • No annual fee debit/ATM card with ATM fee reimbursements3
    • Free online Fidelity BillPay®
    • Free checkwriting
    • Free online transfers between your Fidelity accounts and bank accounts4
    • Optional Fidelity® Investment Rewards credit cards that let you earn rewards that can be swept into a Fidelity® Cash Management Account5
  • How do I open a Fidelity® Cash Management Account?

    The easiest way to open a Fidelity® Cash Management Account is to enroll online. Visit Open an Account to enroll online or to download and print an application. Accounts with trust registrations must be opened using a paper application.

  • What spending and money movement features are included with the Fidelity® Cash Management Account?

    Cash Manager is an optional feature that provides you with flexibility in managing your finances by automatically moving cash to your Fidelity® Cash Management Account when needed and alerting you when your balance falls above or below “target” levels. You indicate the Fidelity brokerage accounts and bank accounts you want to link to your Fidelity® Cash Management Account as well as other preferences such as the minimum and maximum target balances. Once established, Cash Manager provides:

    • Self-Funded Overdraft Protection – Cash is automatically transferred from your designated Fidelity accounts as needed to cover debits such as checks, bill payments, and debit card purchases.
    • Minimum Balance Transfers – If the balance in your Fidelity® Cash Management Account falls below the level you indicate, cash is automatically transferred from your Fidelity brokerage accounts and/or bank account.
    • Maximum Balance Alert – When the balance in your Fidelity® Cash Management Account exceeds the level you indicate, Fidelity sends you an alert so you can invest the extra cash for potentially higher returns.
  • How does the FDIC insurance coverage work?

    The cash balance in the Fidelity® Cash Management Account is swept into an FDIC-insured interest-bearing account at one or more program banks. The deposit at the banks is eligible for FDIC insurance and subject to FDIC insurance coverage limits. Fidelity automatically performs all transfers between the program banks and your account. You cannot access your funds directly from a program bank. Please refer to the following for additional information:

  • How does the FDIC Deposit Sweep Program help maximize my FDIC insurance eligibility?

    The FDIC Deposit Sweep Program maximizes your FDIC eligibility by systematically allocating your cash across multiple program banks. For example, a deposit of $500,000 to an individually registered Fidelity® Cash Management Account will be spread across three program banks. $245,000 will be swept to the first two program banks each and $10,000 is swept into a third program bank. Sweeping only $245,000 rather than the respective FDIC coverage limit of $250,000 helps to ensure that any accrued (unpaid) interest is also protected by FDIC Deposit Insurance Coverage. Under this example, a subsequent deposit of an additional $50,000 will be automatically swept into the third program bank.

  • Who is responsible for monitoring my account to make sure it does not exceed FDIC coverage limits?

    You are responsible for monitoring the total amount of cash on deposit with the program banks assigned to your Fidelity® Cash Management Account. Note this total includes other FDIC eligible assets at Fidelity as well as at other financial institutions held in the same right and legal capacity. Fidelity offers email alerts to customers with accounts that have the FDIC-Insured Deposit Sweep Program when the core program bank balance exceeds the FDIC limits ($250,000 for individual accounts, and $500,000 for joint accounts). You can view the amount of cash at each program bank via Fidelity.com at all times.

  • What if my balance at an assigned bank exceeds the FDIC insurance coverage limits?

    If you exceed the FDIC coverage limits at a bank assigned to hold your deposits, contact us at 800-931-9987 to discuss opting out of a bank or updating the program bank list assigned to your account.

    Remember, the FDIC limit applies to all accounts you hold at a bank, so be sure that you consider balances in other accounts you have directly with the bank.

  • How does the FDIC insurance coverage work if I hold investments in my Fidelity® Cash Management Account?

    Securities held in a brokerage account are not eligible for FDIC-insurance coverage. Instead, brokerage accounts maintained with Fidelity, including the Fidelity® Cash Management Account, are protected by Securities Investor Protection Corporation (SIPC), which protects brokerage accounts of each customer when a brokerage firm is closed due to bankruptcy or other financial difficulties and customer assets are missing from accounts. SIPC protects brokerage accounts of each customer up to $500,000 in securities, including a limit of $250,000 on claims for cash. Money market funds held in a brokerage account are considered securities. For more information on SIPC coverage, please review the brochure “How SIPC Protects You” available for free download at www.sipc.org.

    Also see How Fidelity Safeguards Your Accounts for additional information.

  • How is interest calculated?

    Interest on your cash balance is accrued daily and pays monthly on the last business day of the month. Note that the specific program bank assigned to your account does not impact the interest rate.

  • Can I designate a Fidelity® Cash Management Account as a checking account in Quicken®?

    Quicken® recognizes a Fidelity® Cash Management Account as a checking account when you follow these steps:

    1. From the Main Menu in Quicken, choose Tools > Accounts List.
    2. Select the investment account to which you’d like to add a linked checking account, then click the Edit button.
    3. On the General Information tab on the Account Details window, choose “yes” to “Show cash in a checking account.” Quicken will prompt you to back up your data file.
    4. Once the backup is complete, the linked checking account is created in Quicken with the same name as your investment account, plus the suffix “Cash.” Click the OK button to save your changes.

Cash Manager

  • Why should I set up Cash Manager?

    By setting up Cash Manager, you can automatically move cash to your Fidelity® Cash Management Account when you need it and receive alerts so that you can actively invest extra cash when you have it.

    Here's how Cash Manager works:
    You open a Fidelity® Cash Management Account and set a maximum target balance, a minimum target balance, a minimum transfer amount, and a hierarchy of funding accounts to supply available cash to your Fidelity® Cash Management Account.

    When the cash in your Fidelity® Cash Management Account hits your maximum target balance, Cash Manager alerts you so you can move the money and invest it for the long run.

    If the cash in your Fidelity® Cash Management Account drops below your minimum target balance, Cash Manager moves available cash automatically from your designated funding accounts in the order you specified.

    Sign up for Cash Manager overdraft protection, and if your debit requests (e.g., checks, debit card, direct debit) exceed the balance in your Fidelity® Cash Management Account, available funds from your funding accounts (up to $99,999.99 per day per funding account) will automatically be moved to your Fidelity® Cash Management Account to cover the debit. Available funds include cash (core), available margin, and non-core money market funds. These sources will be drawn from the first funding account in this order before the next account is tapped.

  • What’s the difference between Cash Manager self-funded overdraft protection and a minimum target balance?
    • Self-funded overdraft protection provides available cash immediately for pending transactions if your balance would otherwise go below $0 (into overdraft). It can provide emergency protection and will draw only enough cash to prevent a negative account balance by drawing on available cash, available margin, and non-core money market funds in your designated Fidelity funding accounts (up to $99,999.99 per day per funding account).
    • Minimum target balance is used to automatically transfer available cash on a nightly basis to restore the cash balance minimum you have set for your Fidelity® Cash Management Account. It is triggered by your available cash balance only (not transactions) and will draw your minimum transfer amount ($250 minimum) of cash from your designated funding accounts (up to $99,999.99 per day per funding account) in the order you have set.
  • How does Cash Manager's free self-funded overdraft protection differ from the overdraft protection I get at my bank?

    Cash Manager's self-funded overdraft protection differs from the overdraft protection available at a typical bank in two ways:

    • Timing
      With Cash Manager, overdraft protection is provided by moving funds from your funding accounts (up to $99,999.99 per day per funding account) so quickly that no overdraft actually occurs. With a bank, typically overdraft protection is provided by tapping into a line of credit once an overdraft occurs.
    • Interest Charges
      To provide overdraft protection, Cash Manager moves available cash from the first of your Fidelity funding accounts (up to $99,999.99 per day per funding account) before it draws on available margin debt—if it needs to draw on margin debt at all. Margin is only tapped if you have elected it on your funding accounts. With Cash Manager's overdraft protection, you incur no interest charge if no margin debt is drawn, and if margin debt is drawn, you can reduce interest charges by replenishing your Fidelity funding accounts. Typically, with a bank, overdraft protection incurs an interest charge as soon as it is used, and you are charged interest until you pay off the debt.
  • Will any of my stocks, bonds, or mutual funds be sold if I drop below my minimum target balance or use Cash Manager overdraft protection?

    No, Cash Manager only moves available cash once per day as follows: every night, Fidelity checks the cash balance in your Fidelity® Cash Management Account. If that balance is below your minimum target balance, Cash Manager moves enough available cash from your funding accounts (up to $99,999.99 per day per funding account) to your Fidelity® Cash Management Account to restore its cash balance to the minimum target balance. If there is not enough cash in the first funding account in your hierarchy, Cash Manager checks the second funding account in your hierarchy for available funds. It continues until the Fidelity® Cash Management Account cash balance is restored, or there are no more accounts in your funding account hierarchy. Cash Manager will always attempt to move the minimum transfer amount or the difference between the actual cash balance and the minimum target balance—whichever is larger. To restore the minimum target balance, Cash Manager will only move cash that is available in your funding accounts. It does not use available margin or non-core money market funds. They are only used to cover overdrafts if you select that option.

    Cash Manager overdraft protection is funded by using available funds (available cash, available margin, and non-core Fidelity money market assets) from a hierarchy of Fidelity funding accounts (up to $99,999.99 per day per funding account) that you designate. It will not sell equity or bond positions or non-money market funds, and will not subject you to variations in market conditions. Fidelity funding accounts are tapped in the order you specified in your funding account hierarchy. If there are not enough funds in all of your Fidelity funding accounts to cover a debit request, no money will be transferred, and the debit will be referred to the Fidelity Margin Department for a payment decision. Debit card transactions are always rejected if there are not enough funds, because there is not enough time for the Margin Department to research other possible available funds.

  • What types of accounts are eligible to be Cash Manager funding accounts?

    Cash Manager funding accounts must be owned fully by the owners of the Fidelity® Cash Management Account they are funding. Eligible accounts include:

    • Individual (I) or Joint (J) registrations, including Transfer on Death (TOD) equivalents.
    • Trust Under Agreement (TRUA)
    • A bank account you have previously connected to the Fidelity® Cash Management Account by electronic funds transfer (EFT). (Note that the bank account will only be used to restore the minimum target balance and not be used for overdraft protection.)

    If you want a funding account to have the automatic investment (AI) account feature, you must establish AI on the account BEFORE linking it to the Fidelity® Cash Management Account via Cash Manager. If an account is already linked as a funding account, and you want to add AI, you must first de-link the account, add in the AI, and then re-link the account to the Fidelity® Cash Management Account via Cash Manager.

    The Personal Withdrawal Service (PWS) can be set up on a funding account without de-linking it first.

    The same funding account cannot be used to concurrently fund two different Fidelity® Cash Management Accounts using Cash Manager. A Fidelity® Cash Management Account cannot be used as a funding account for another Fidelity® Cash Management Account using Cash Manager.

    Stock Plan Services (SPS) accounts are not eligible to be funding accounts. You can request manual transfers between an SPS account and a Fidelity® Cash Management Account.

    If the Fidelity® Cash Management Account is an individual registration in, for example, John’s name, only accounts owned by John can be funding accounts. If the Fidelity® Cash Management Account is a joint registration owned by John and Jane, then funding accounts could be John’s and/or Jane’s accounts and Joint accounts owned only by both John and Jane. Note that only John can set up his individual registered account and only Jane can set up her individual registered account as funding accounts.

    Note that trustees on a TRUA account are considered owners of the account and Fidelity uses the TIN or SSN to recognize the identity of the owners. So if the TRUA account uses a TIN and the individual account uses a SSN, Fidelity will not know that the owners are the same person even if they identify the same person.

    Any trustee registered on a trust Fidelity® Cash Management Account has access to Cash Manager and may set it up or modify it on behalf of all the trustees. Approval of all trustees for setting up or modifying Cash Manager is not required. This means that any trustee can set the minimum and maximum balance levels for the trust Fidelity® Cash Management Account or designate funding accounts. However, funding accounts must be owned in their entirety by the trustees of the Fidelity® Cash Management Account that they are funding. In other words, all owners and/or trustees on a funding account must be listed as registered trustees on the trust Fidelity® Cash Management Account.

    For example, if the trustees on a Fidelity® Cash Management Account are John and Jane, then the following accounts are eligible as funding accounts:

    • John’s individual account
    • Jane’s individual account
    • John and Jane’s joint account
    • Trust account for which John is the sole trustee
    • Trust account for which Jane is the sole trustee
    • Trust account for which both John and Jane are the only trustees

    If there is a trust account for which John, Jane, and Mary are the trustees, then this account would not be eligible as a funding account because Mary is not registered on the Fidelity® Cash Management Account.

    Conversely, if Mary is a trustee on the Fidelity® Cash Management Account, all the accounts above are still eligible as a funding account because John and Jane are listed on the trust Fidelity® Cash Management Account. The rule that all owners and/or trustees on a funding account must be listed as registered trustees on the trust Fidelity® Cash Management Account is satisfied.

  • Why can't I draw from my bank to provide self-funded overdraft protection?

    Fidelity uses electronic funds transfer (EFT) to move money from your bank. It takes several days for the funds on an EFT to settle into your Fidelity® Cash Management Account. Because of this delay, Fidelity can only use EFT from your bank to restore your account to the minimum target balance. Note that Cash Manager will not send multiple requests to your bank until the first one is fully processed.

  • Do I need to have more than one funding account?

    No, only one funding account is needed to set up Cash Manager. However, if that one funding account is a bank account, no overdraft protection can be provided.

  • When will I be alerted about money movement for Fidelity® Cash Management Account?

    An alert is sent after a transaction is initiated. Your latest alerts are always available on your Fidelity® Cash Management Account overview page. If you choose to have your alerts sent to you by wireless communication, the amount of time that elapses after the transaction is initiated and you receive your alert depends on the device on which you receive your alert, and the service you have on that device.

  • Can I suspend or remove the Cash Manager feature from my Fidelity® Cash Management Account?

    Yes, you can temporarily suspend or permanently remove the Cash Manager feature at any time. If you permanently remove Cash Manager, you can reestablish it by setting it up again.

    • Suspending Cash Manager
      You can suspend Cash Manager for up to 10 business days. You may wish to suspend Cash Manager if you are anticipating a transaction in your account that would cause your balance to fall below your minimum target balance and you do not want money moved automatically from your funding accounts. Cash Manager will automatically reactivate after 10 business days or you can reactivate it yourself before 10 business days by visiting the Cash Manager preferences page and selecting the Reactivate option.
    • Removing Cash Manager
      You can remove the Cash Manager feature from your account by clicking Remove on the Cash Manager preferences page. When your Cash Manager status is removed, all your Cash Manager preferences are deleted. You can reestablish Cash Manager on your Fidelity® Cash Management Account by completing the setup process again. Set your Cash Manager status to Remove only when you want to permanently remove Cash Manager from your Fidelity® Cash Management Account.
  • Can I use my current bank account as a Cash Manager funding account?

    Yes, it is possible to use your current bank account as a last choice funding account to restore the Fidelity® Cash Management Account minimum target balance. You must first create an electronic funds transfer (EFT) link between the Fidelity® Cash Management Account and your bank account.

    Please note that there could be a prenote waiting period of approximately 7 to 10 calendar days associated with the establishment of this EFT link. Once the EFT prenote period has been completed, and the link has been fully established, it will take up to four business days for an executed EFT transaction to be processed through the Automated Clearing House (ACH) network before the cash will be available in the Fidelity® Cash Management Account.

  • Can the automatic investment (AI) service be a Fidelity® Cash Management Account feature, and can it be used in conjunction with the Cash Manager feature?

    Yes, the automatic investment (AI) service can be set up on either a Fidelity® Cash Management Account or on a Cash Manager funding account. Please note that the AI service is currently available from an outside account to a Fidelity account.

    If you want a funding account to have the AI account feature, you must establish AI on the account BEFORE linking it to the Fidelity® Cash Management Account via Cash Manager. If an account is already linked as a funding account, and you want to add AI, you must first de-link the account, add in the AI, and then re-link the account to the Fidelity® Cash Management Account via Cash Manager.

    Generally, during the overnight processing cycle for money movement associated with a Fidelity account, AI is processed first, followed by personal withdrawal service (PWS) second, and then Cash Manager third. This means that if a Fidelity® Cash Management Account or a Cash Manager funding account has a mix of the above money movement features enabled, available funds will be moved based on the processing priority outlined above. Any money movement transaction which impacts the account’s core cash balance (for example: purchase, wire check redemption, IRA contribution) may affect PWS, AI, or Cash Manager money movement.

  • Can the personal withdrawal service (PWS) be a Fidelity® Cash Management Account feature, and can it be used in conjunction with the Cash Manager feature?

    Yes, the personal withdrawal service (PWS) can be set up on either a Fidelity® Cash Management Account or on a Cash Manager funding account.

    Generally, during the overnight processing cycle for money movement associated with a Fidelity account, automatic investment (AI) is processed first, followed by PWS second, and then Cash Manager third. This means that if a Fidelity® Cash Management Account or a Cash Manager funding account has a mix of the above money movement features enabled; funds will be moved based on the processing priority outlined above. Any money movement transaction which impacts the account's core cash balance (for example: purchase, wire check redemption, IRA contribution) may affect PWS, AI, or Cash Manager money movement.

Thank you for choosing the Fidelity® Cash Management Account

Questions?

1. The Fidelity® Cash Management Account is a brokerage account designed for spending and short-term investing. The account does not provide margin borrowing or trading in options or international securities.
2. The cash balance in the Fidelity® Cash Management Account is swept to an FDIC-insured account at one or more program banks where it earns a variable rate of interest. The deposit at the program bank is not covered by SIPC. The deposit is eligible for FDIC insurance subject to FDIC insurance coverage limits. For more information about FDIC insurance coverage, please visit the FDIC website at www.FDIC.gov. As referenced in the Fidelity® Cash Management Account FDIC-Insured Deposit Sweep Program Disclosure document (PDF), customers are responsible for monitoring their total assets at each of the program banks to determine the extent of available FDIC insurance. All FDIC insurance coverage is in accordance with FDIC rules. See the list of eligible program banks.
3. All Fidelity ATM withdrawal fees will be waived for your Fidelity® Cash Management Account. In addition, your Fidelity® Cash Management Account will automatically be reimbursed for all ATM fees charged by other institutions while using a Fidelity Visa® Gold Check Card linked to your Fidelity® Cash Management Account at any ATM displaying the Visa®, Plus® or Star® logos. The reimbursement will be credited to the Fidelity® Cash Management Account the same day the ATM fee is debited from the account. Please note, a foreign transaction fee of one percent is not waived, which will be included in the amount charged to your account. The Fidelity Visa® Gold Check Card is issued by PNC Bank, N.A. and administered by PFPC Trust Company, which are not affiliated with Fidelity Investments.
4. Some banks may charge a fee to receive the transfer.
5. For information about rates, fees, other costs, and benefits associated with the use of these credit cards, visit fiacardservices.com or refer to the disclosures accompanying the online credit card application, or call FIA Card Services, N.A. toll-free at 1-866-598-4971. This credit card program is issued and administered by FIA Card Services, which is not an affiliate of Fidelity Investments.
Third-party trademarks appearing herein are the property of their respective owners. All other service marks are property of FMR LLC.
An investment in a money market fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the fund.
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