Interest Rates for the Bank Deposit Sweep Program

Cash Balances held in the Bank Deposit Sweep Program will earn a variable rate of interest1 but the interest earned will be the same rate of interest regardless of the Program Bank with which your funds are deposited. Your interest rate is based upon your Program Deposits in accordance with the Interest Rate Tiers provided below:

Tier range
Tier From To Interest rate2 APY2
1 $0.01 $49,999.99 0.25% 0.25%
2 $50,000.00 $99,999.99 0.25% 0.25%
3 $100,000.00 $499,999.99 0.53% 0.53%
4 $500,000.00 and above 0.53% 0.53%

The Cash Balance held in the Bank Deposit Sweep Program (core transaction account) is eligible for FDIC insurance coverage subject to the applicable FDIC coverage limits3. All assets of the account holder at the depository institution will generally be counted toward the FDIC coverage limit.

Notwithstanding the available number of eligible Program Banks, Program limitations require that deposits made into the Bank Deposit Sweep Program are only eligible for up to a maximum of $2.5 million in FDIC insurance at any given time (for an individual account) or up to a maximum of $5 million in FDIC insurance at any given time (for a joint account), subject to the total amount on deposit in an account, applicable FDIC rules (generally, the standard FDIC insurance protects up to $250,000 per depositor, per depository bank, for each account ownership category, see FDIC rules for details) and other factors (such as up to only $500,000 per joint account, regardless of the number of account holders); please refer to the Bank Deposit Sweep Program Disclosure Document. Deposits over the maximums or limits will not be FDIC insured. The Bank Deposit Sweep Program is not covered by SIPC.

Fidelity also offers other alternatives for core transaction account to meet your cash management needs. The core transaction account options available in the Fidelity Brokerage or Retirement Account include money market mutual funds available at Fidelity. Fidelity Brokerage or Retirement Accounts offer a wide range of money market funds. These money market funds may be eligible for SIPC protection,4 subject to SIPC rules and requirements, rather than FDIC insurance coverage. Over any given period, the interest rates on the Cash Balances held in the Bank Deposit Sweep Program (core transaction account) may be lower than the rate of return on other core transaction accounts which are not FDIC insured or on bank account deposits offered outside the Program. Program Banks do not have a duty to offer the highest rates available or rates that are comparable to money market funds.

Example of options available for your cash 7-day yield5 (as of 6/12/2018) Effective yield6 (as of 6/12/2018)
Fidelity Government Cash Reserves 1.46% 1.47%
Fidelity Treasury Money Market Fund 1.41% 1.41%

The performance data shown represents past performance, which is no guarantee of future results. Investment return and principal value of an investment will fluctuate; therefore, you may have a gain or loss when you sell your shares. Current performance may be higher or lower than the performance data quoted. To learn more or to obtain the most recent month-end performance, call Fidelity at 1-800-737-3756. Past performance is no guarantee of future results. Current and future portfolio holdings are subject to risk.

Please consider all investment options that may be available outside of the Bank Deposit Sweep Program. For the most recent month-end performance of the core transaction account options available please visit fidelity.com. The rates above reflect a 7-day yield with no compounding and is also published on Fidelity.com/moneymarketfunds.

A Note about Differences in Rates of Return

The rate of return of the Bank Deposit Sweep Program is shown as the interest rate that will be paid on Cash Balances in your Fidelity Brokerage or Retirement Account that are deposited at a Program Bank. The Annual Percentage Yield (APY) takes into account the effect of monthly compounding of the interest posted to your account. The rate of return of a money market fund is typically shown for a seven-day period, as in the case with the money funds displayed above, but is expressed as an annual percentage rate. It is referred to as the "7-day yield" and may change at any time based on the performance of the investments held by the money market fund. The effective yield on a money market fund reflects the effect of compounding of interest over a one-year period.

You could lose money by investing in a money market fund. Although the fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. An investment in a money market fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The Fund sponsor has no legal obligation to provide financial support to the fund, and you should not expect that the sponsor will provide financial support to the fund at any time.

Total returns are historical and include change in share value and reinvestment of dividends and capital gains, if any. Cumulative total returns are reported as of the period indicated. Life of fund figures are reported as of the commencement date to the period indicated.

Fidelity's government and U.S. Treasury money market funds will not impose a fee upon the sale of your shares, nor temporarily suspend your ability to sell shares if the fund’s weekly liquid assets fall below 30% of its total assets because of market conditions or other factors.