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Safeguarding Your Accounts

Helping protect your assets is important to us. Learn more about the different ways in which your assets may be safeguarded at Fidelity.

What is FDIC insurance?

The Federal Deposit Insurance Corporation (FDIC) is a U.S. government agency that insures cash deposits at FDIC member banks, generally up to $250,000 per account.1

What is eligible for FDIC insurance at Fidelity?

Fidelity's FDIC Insured Deposit Sweep Program (the "Program")

Through the Program, the uninvested cash balance in certain Fidelity accounts is swept to one or more program banks where it is eligible for FDIC insurance.

The following Fidelity accounts utilize the Program:

Brokered certificates of deposit (brokered CDs)

Fidelity offers investors brokered CDs, which are issued by banks for the customers of brokerage firms. These CDs are usually issued in large denominations and the brokerage firm divides them into smaller denominations for resale to its customers. Because the deposits are obligations of the issuing bank, and not the brokerage firm, FDIC insurance applies.

Fidelity's FDIC Insured Deposit Sweep Program details

In utilizing the Program, your uninvested cash balance is swept to a program bank where the deposit is eligible for FDIC insurance. If you have more than $245,000 in uninvested cash in your account, the Program maximizes your eligibility for FDIC insurance by systematically allocating this uninvested cash across multiple program banks. At a minimum, there are generally five banks available to accept customer deposits, making customers eligible for nearly $1,250,000 of FDIC insurance.2

The following links provide a current list of the program banks participating in the Program, based on the type of account:

Please note that these lists may change over time as program banks are added or removed.

How the Program works

Fidelity automatically performs all transfers between your account and the program banks and provides anytime access to view the amount of cash at each program bank via Fidelity.com.

The illustration above outlines what happens on Day 1 when $500,000 is deposited into an account that utilizes the Program, and how a subsequent $50,000 deposit is handled on Day 2.

The Program systematically distributes the deposit across available program banks. As shown on Day 1, $245,000 will be swept into the first two program banks each and $10,000 is swept into a third available program bank. Additionally, a subsequent deposit (on Day 2) of an additional $50,000 is automatically swept into the third program bank, for a total of $550,000 across the three banks.

Note: Fidelity sweeps $245,000 rather than the respective FDIC coverage limit of $250,000 to help ensure that any accrued interest is also eligible for FDIC insurance.

Deposit amounts in excess of FDIC limits

In the event your balance on deposit at a program bank exceeds $250,000 you will be sent an email alert notifying you of that fact. However, it is important that you independently monitor your deposits at each bank, including deposit at the bank outside the Program to ensure you do not exceed the applicable FDIC insurance limit, because the FDIC calculates the limit based upon all the accounts you hold at a bank in the same right and capacity—not just the funds in the Program.1

Questions?

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1. For more information related to the FDIC, including coverage limits and rules, please visit www.fdic.gov.
2. Under the Fidelity FDIC Deposit Sweep Program, uninvested cash balance is swept to one or more Program Banks where it earns a variable rate of interest and is eligible for FDIC insurance. At a minimum, there are five banks available to accept these deposits, making customers eligible for nearly $1,250,000 of FDIC insurance. If the number of available banks changes, or you elect not to use, and/or have existing assets at, one or more of the available banks, the actual amount could be higher or lower. Customers are responsible for monitoring their total assets at each of the Program Banks to determine the extent of available FDIC insurance coverage in accordance with FDIC rules. The deposits at Program Banks are not covered by SIPC.
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