What is the current rate on Fidelity cash management account?
Overview of Fidelity Cash Management interest rates
It also reimburses all ATM fees anywhere in the world. It earns 2.72% APY and has FDIC insurance on balances up to $5 million.
Overview of Fidelity Cash Management interest rates
It also reimburses all ATM fees anywhere in the world. It earns 2.72% APY and has FDIC insurance on balances up to $5 million.
Higher APYs than traditional savings account
Nationwide, the average APY for savings accounts was just 0.47% as of January 2024. But with cash management accounts, your money can grow at a rate as high as 5%—more than 10 times the average for savings accounts.
| Fund Name | Date | Yield |
|---|---|---|
| 1 Day | ||
| Fidelity Government Cash Reserves Symbol FDRXX CUSIP 316067107 Fund # 55 | 04/24/2024 | 4.98% |
| Fidelity Government Money Market Fund Symbol SPAXX CUSIP 31617H102 Fund # 458 | 04/24/2024 | 4.96% |
| Fidelity Government Money Market Fund - Advisor Cl M Symbol FZGXX CUSIP 31617H870 Fund # 3018 | 04/24/2024 | 4.68% |
Fidelity's program for uninvested cash is also simple and competitive, offering 4.99% on uninvested cash through a sweep into money market funds. 12 Fidelity's cash management program operates more like a bank account, offering bill pay, an ATM card, and mobile check deposit.
Does Fidelity Have a High-Yield Savings Account? Fidelity doesn't offer its customers traditional deposit accounts like savings accounts—high-yield or otherwise.
At Fidelity, any uninvested cash deposited in a Fidelity brokerage account is automatically put in a money market fund now earning 4.95%—just one more way we're providing industry-leading value for our customers.
Does the Fidelity Cash Management Account pay interest? The Fidelity Cash Management Account currently earns 2.72% APY. Interest is accrued daily and paid monthly on the last business day of the month.
In short, if you like to do all your banking under one roof, the Fidelity Cash Management Account is perfectly acceptable -- but other cash management accounts pay a higher interest rate.
| Account | Forbes Advisor Rating | Annual Percentage Yield |
|---|---|---|
| Fidelity Cash Management Account | 4.8 | 2.72% |
| Aspiration Spend & Save | 4.5 | Up to 3.00% |
| TD Ameritrade Online Cash Services | 4.4 | 0.35% |
| Betterment Cash Reserve | 4.2 | Up to 5.50% |
How safe is Fidelity money market?
Stability & safety
While not insured by the FDIC, the funds are required by federal regulations to invest in short-maturity, low-risk investments, making them less prone to market fluctuations than many other types of investments.
Cash balances in the Fidelity® Cash Management Account are swept into an FDIC-Insured interest bearing account at one or more program banks and, under certain circ*mstances, a money market mutual fund (the "Money Market Overflow").
- Northern Bank Direct – 4.95% APY.
- All America Bank – 4.90% APY.
- Redneck Bank – 4.90% APY.
- First Foundation Bank – 4.90% APY.
- Sallie Mae Bank – 4.65% APY.
- Prime Alliance Bank – 4.50% APY.
- Presidential Bank – 4.37% APY.
- EverBank – 4.30% APY.
Money market funds like Fidelity Government Money Market (SPAXX) accrue interest daily, and the system deposits this interest on the last business day of the month. Previous payments can be reviewed via your "Activity & Orders" tab on Fidelity.com.
Overall Appeal. Fidelity and Schwab are both excellent choices. These investment firms offer thousands of funds. There are some nuances, such as Fidelity being better for crypto traders and Schwab being more optimal for futures traders.
| Return Type | 1 Yr | Life |
|---|---|---|
| AFTER TAXES ON DISTRIBUTIONS Close Popover | ||
| Fidelity® Government Money Market Fund | 2.94% | 1.65% |
| AFTER TAXES ON DISTRIBUTIONS AND SALE OF FUND SHARES Close Popover | ||
| Fidelity® Government Money Market Fund | 2.94% | 1.65% |
The Fidelity Cash Management account is a brokerage account designed for investing, spending and cash management. Investing excludes options and margin trading. For a more traditional brokerage account, consider the Fidelity Account.
Unlike a bank or credit union, the money in your cash management account isn't directly insured by the FDIC. But because CMAs typically sweep uninvested cash into multiple accounts at multiple partner banks every day, coverage limits often exceed the FDIC insurance limit of $250,000.
Online Withdrawal
To initiate an online cash withdrawal, simply log in to your Fidelity account and go to the 'Transfer' tab. From there, select 'Withdraw Money' and choose the amount and account for the funds to be deposited into. Confirm the transaction, and you're all set!
| Institution | APY* | Great for: |
|---|---|---|
| Quontic Bank | 5% | Savers who prefer digital banking |
| Ally Bank | 4.25% | Savers who want 24/7 customer service access |
| UFB Direct | 5.45% | Savers who can maintain a $5,000 balance |
| Redneck Bank | 4.9% | Savers who have at least $500 on hand |
What is the safest money market fund?
| Money market fund | Expense ratio | 7-day SEC yield |
|---|---|---|
| North Capital Treasury Money Market Fund (NCGXX) | 0% | 5.4% |
| Schwab Municipal Money Fund - Investor Shares (SWTXX) | 0.34% | 3.3% |
| Vanguard Ultra-Short Bond ETF (VUSB) | 0.10% | 5.1%* |
| Global X 1-3 Month T-Bill ETF (CLIP) | 0.07% | 5.2%* |
Brokerage accounts earn value primarily through appreciation of investment assets, with a potential for high earnings and losses. CMAs, on the other hand, are essentially regular bank accounts. They are FDIC insured, which protects the account's value up to a certain amount in case the bank fails.
THE BANK OF NEW YORK MELLON.
Direct deposit
You can have your paycheck, Social Security, or other pension benefits deposited directly into a Fidelity account. You'll need to provide the Fidelity account's routing (ABA) number and account number to your employer, government agency, or third party.
Only the Cash Management Account is FDIC insured (which may or may not be a large concern for you). To implement the strategy @rhowell uses (and which I've debated using myself) requires keeping the cash in a money market fund in the brokerage account, which has a higher interest rate but isn't FDIC insured.
