You can now earn 3.29% on your cash

It’s a dedicated brokerage account to help grow your savings at Fidelity with competitive rates on cash and everything you need for convenient spending and saving.

Here are some things you can do with this account: 

• Spend and withdraw money easily with a debit card  
• Pay bills and write checks  
• Add money via direct deposit with a designated account and routing number or by using mobile check deposit  
• Transfer money instantly between your eligible Fidelity accounts or  
• Wire money for free

It’s available exclusively to Fidelity customers. If you have any Fidelity account, you’re eligible to open a cash management account. 

Cash management accounts are designed to handle all of your spending and savings needs. They are intended to complement your other accounts, not replace them. By pairing a cash management account with accounts that are designed for long-term savings or investments, like eligible retirement accounts or Fidelity Brokerage Accounts, you can set up regular transfers between accounts to easily invest excess cash as you see fit.

While both accounts can generally help you earn higher interest rates than a traditional bank or checking account, one major difference between Fidelity Cash Management Accounts and high yield savings accounts are available features and FDIC-insurance coverage options. The Fidelity Cash Management Account has features that aren’t always offered by high yield savings accounts—like a debit card, check writing, and mobile deposit. This means you get easy access to your cash while your money can earn a competitive rate. 



When it comes to FDIC-insurance, banks that offer high yield savings accounts are FDIC-insured. The Fidelity Cash Management Account is a brokerage account that gives you the option to put your money into our FDIC-Insured Deposit Sweep Program, but you can also put your money into available money market funds which tend to earn a higher rate. SPAXX – Fidelity® Government Money Market Fund is not covered by FDIC insurance and therefore subject to market risk. However, SPAXX, along with all other securities in the Fidelity Cash Management Account, is covered by Securities Investor Protection Corporation (SIPC) protection—which protects up to $500,000 (including $250,000 for claims for cash.) SIPC coverage does not protect against market losses but it does protect against brokerage firm failure or bankruptcy. Explanatory brochure available upon request or at www.sipc.org. 


Both a cash management account and a traditional bank checking account may offer some of the same features like bill pay, debit card, and mobile deposit—however there are often a few key differences in earning potential, FDIC-insurance, and fees. The Fidelity Cash Management account offers multiple ways to earn with our FDIC-insured Deposit Sweep Program or through money market funds that are invested in low-risk securities, like SPAXX. SPAXX is not covered by FDIC insurance and may have a higher earning potential than traditional bank checking accounts. Additionally, some banks require minimum balances to avoid fees and they don't all reimburse ATM fees at machines outside of their bank's network. The Fidelity Cash Management Account offers unlimited ATM reimbursements and there’s no account fees or minimum balances.

When you add money to your Fidelity Cash Management Account, it will be automatically put into your account’s core position. Think of your core position like your wallet — it holds your cash. Money goes out when you decide to spend or buy something using the account, and money goes in any time you make a deposit. 
 


There are two options for your core position that you’ll choose from when you open an account: SPAXX – Fidelity® Government Money Market Fund and the FDIC – Insured Deposit Sweep Program. Both options keep your cash accessible so you can spend or withdraw any time, but it’s important to understand the differences.  
 


SPAXX – Fidelity^® Government Money Market Fund 

SPAXX is a money market fund that gives you access to your cash and may earn a higher return than a traditional checking account. In general, money market funds are invested in short-term, lower‑risk securities which keep price changes relatively small compared with other types of mutual funds. However, an investment in a money market fund is not a bank account and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Money held in SPAXX, as well as any other security held in the Fidelity Cash Management Account, is eligible for SIPC protection up to $500,000. 
 


Fidelity’s FDIC – Insured Deposit Sweep Program 

This program automatically transfers (or sweeps) your uninvested cash into program banks, where it’s deposited. If FDIC protection is your priority, this option allows for your money to be insured by the FDIC up to $4 million.

Fidelity provides multiple layers of protection to help keep your account secure. 

• Fidelity Customer Protection Guarantee 
  Covers certain losses from unauthorized activity, giving you added peace of mind.
• 24/7 transaction monitoring 
  Helps detect and prevent suspicious activity around the clock.
• Advanced security tools and alerts
  Allow you to stay informed and in control of your account activity.

Together, these protections help safeguard your money while you save, spend, and manage cash with confidence.