fidelity sweep account interest rate

Fidelity Cash Sweep Interest Rates (2024)

Fidelity cash sweep account program (FDIC-insured deposit, SPAXX, FZFXX, FDRXX). Fidelity brokerage account interest rate.

Fidelity Cash Sweep Account Rates

Fidelity Investments offers several sweep options for idle cash, although they’re not all available for all account types. Read on for the details.

Fidelity Money Market Fund

The most common vehicle that Fidelity uses for uninvested cash is the money market fund. There are multiple funds Fidelity uses. They are all protected by SIPC up to $500,000 in total (not each). Because these funds are considered securities and not actual cash, once cash goes into them, SIPC’s $250,000 of insurance on cash doubles. That’s a big advantage that money market funds offer compared to straight cash.

The disadvantage money market funds have is that their share values could dip below $1.00. Obviously, cash won’t do this. It’s not common for the NAV to go below a dollar (also known as “breaking the buck”), but it has happened before.

Whichever fund an account uses, free cash will be automatically swept into it. There is no need to manually place an order as for a regular mutual fund.

There are three primary money market funds Fidelity is using right now as core positions in brokerage accounts. They are:

SPAXX, the Fidelity Government Money Market Fund. This fund has an expense ratio of 0.42% with a current yield of 4.99%.

FDRXX, the Fidelity Government Cash Reserves Fund. The expense ratio on this one is 0.33%. It has a 7-day yield of 5.00%.

FZFXX, the Fidelity Treasury Money Market Fund. This one goes back to 42 basis points for the management fee. It’s yielding 4.99% currently.

All three funds hold securities issued by the U.S. government. They have no transaction fees, no loads, and no minimum hold periods.

Fidelity FCASH

The second option Fidelity offers for free cash balances is FCASH. This is simply a deposit of cash that is SIPC insured. It is not invested in any security, money market fund or otherwise. The advantage of this one as far as Fidelity is concerned is that the broker can use it to fund its day-to-day operations. The current interest rate on FCASH is 2.69%.

Fidelity FDIC Sweep

Fidelity clients who prefer FDIC insurance can get it through the firm’s FDIC-sweep program. Essentially, the way this works is that an account’s idle cash is moved to a partner bank that is FDIC insured. The cash sits in the bank’s vault, although it is available for trading inside the Fidelity brokerage account.

Because Fidelity uses at least 5 program banks in its sweep program, each customer is eligible for at least $1,250,000 in FDIC protection, five times the normal limit of $250,000. Thus, customers with large amounts of cash will find an advantage at Fidelity: more FDIC insurance with a single account.

Currently, the FDIC-sweep program has an APY of 2.72%, which is right at the SIPC rate.

Fidelity has recently launched a new program as part of its FDIC-sweep program: Money Market Overflow. In case a customer has more than $1.25 million of idle cash, or whatever the maximum is at the time, money beyond this level will be moved into a money market mutual fund. Currently, Fidelity is using FZSXX. This is the Fidelity Government Money Market Fund.

FZSXX is very similar to the other money market funds we have already seen. It has an expense ratio of 0.46% and a yield of 4.99%.


Majority of brokerage firms offer very low interest on investors' uninvested cash. E*Trade's cash sweep rate, for example, is 0.15%.

Webull, a $0-commission brokerage firm, offers the industry's highest rate of 5% APY on free cash balances. It is fully liquid and completely free, easy to use, and has no conditions or restrictions.

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Choosing a Core Position at Fidelity

It’s really easy to switch the core position from one option to another in a Fidelity account. To do this, click on the link at the very top of the site for the virtual assistant (it may also appear in the lower-right corner of the site). This will generate a pop-up window with the automated chat system. Type in “change core position,” or something to that effect, and the system will show the choices for the account selected.

Fidelity Cash Sweep

Here’s where it gets interesting: Fidelity restricts the available cash choices by account type, and some accounts may have other choices not listed in this article. The robo chat system will display all available choices for the account selected (in case you have more than one account with Fidelity). You simply need to select the choice you want. If you don’t see the core position you want, give Fidelity a call for more assistance.

By default, the Fidelity Cash Management Account uses the FDIC-sweep program. During our testing with a Roth IRA, we were given only two choices in the robo chat: SPAXX and FDRXX.

Fidelity Cash Management Account Overview

A discrete account called the Cash Management Account is available at Fidelity. As the name suggests, this account is intended to be used as a bank account, although technically, it is a brokerage account without margin or options privileges. Fidelity has added a lot of good cash management features to this account, so it does function as a sort of bank account on steroids.

Features of the Cash Management Account

Here are the attributes we’re talking about:

FDIC Sweep: Idle cash in a CMA is automatically swept into FDIC-insured banks. Yes, that’s banks with an ‘s’. Multiple banks are used, which produces up to $5 million in protection, which is 20 times the normal FDIC limit that an individual bank can offer. The current yield on this program is 2.47%.

Money Market Overflow: Customers lucky enough to have more than $5 million will see their uninvested cash above that limit swept into a money market mutual fund. Specifically, this is FZSXX, the Fidelity Government Money Market Fund. The 7-day yield on this fund is 4.56%. It is protected by the SIPC up to program limits, and for investors who prefer the higher yield, it’s always possible to bypass the FDIC-sweep program and go straight into money market funds or other securities, excluding options (remember, the CMA is a modified brokerage account that can invest).

Checks and a Visa Debit Card: The Cash Management Account comes with checkwriting and a Visa debit card. Both are free.

ATM Fee Refunds: Whenever the card is used at an ATM, Fidelity reimburses any withdrawal fee charged by the ATM owner. Fidelity itself charges no fee, so any withdrawal around the world is fee-free. There is a 1% forex conversion fee, however.

Bill Pay: It’s possible to pay bills from a Cash Management Account. There is no fee for this service.

Quicken Compatibility: A Cash Management Account can be added to Quicken as a checking account.

Cash Manager: A digital tool that automatically transfers money in and out of a Cash Management Account based on preset levels.

Mobile Check Deposit: And a lot of other mobile resources.

fidelity cash management account interest rate

Fidelity CMA Fees and Minimums

The Cash Management Account at Fidelity has no minimum balance requirement. The CMA can be opened with any amount, including $0. It has no ongoing fees of any kind.

Trades of securities follow the broker’s regular commission schedule, which means $0 commissions on many trades that are placed online. Online bond trades have no commissions, although there are markups and markdowns in the prices in some cases.

Opening a Fidelity Cash Management Account

It’s really easy to open a Cash Management Account at Fidelity. Simply click on the link at the very top of the website to open a new account. On the next page, there will be a long list of account types. Be sure to select the link for the CMA.

Learning Resources

Fidelity, through its mobile app and website, publishes a lot of materials on personal finance and money management. These resources come in a variety of formats, including both articles and videos. Here are some examples we found:

- Preparing for emergencies
- What to do with your cash now
- CD ladders: Discovering certificate of deposit strategies

Short-Term Investments

As already mentioned, a Fidelity CMA is a brokerage account that can trade most securities. Fidelity offers several cash equivalents that a CMA may want to consider investing in. Examples include:

- U.S. Treasury bonds
- Money market mutual funds
- Brokered CDs (including fractional CDs in units as low as $100)

Here are a few examples we found:

SecurityMaturity dateYield
U.S. Treasury Bill Zero Coupon 08/10/2023 5.145%
Cornerstone Bank CD 02/12/2023 4.95%
Fidelity Government Money Market Fund (SPAXX) n/a 4.60%

Other Cash Management Tools at Fidelity

Full View is a digital tool available on the Fidelity website that uses login credentials of external financial accounts to pull their account values into Fidelity. The tool is able to calculate a net worth and display transactions from all the accounts. There are other features in Full View that can be used to create a budget.

Fidelity has a Visa Signature credit card through Elan Financial Services. The card is linked to other Fidelity accounts, meaning that a single login is all that is required to manage all of the accounts. The credit card earns 2% cash back that can be deposited into a Fidelity brokerage account, including the CMA.

Fidelity Bloom is similar to the Cash Management Account. Bloom is a spending and saving program Fidelity has created. Two accounts are openedone for saving and another for spending. Bloom comes with a debit card and lots of cash management perks, like round ups and bonuses for shopping with participating retailers. However, there are downsides compared to the CMA. For example, the Bloom debit card doesn’t offer ATM fee refunds.

Robinhood as an Alternative

Just in case Fidelity’s cash tools don’t quite meet your standards, there is always Robinhood. The broker now has some pretty enticing cash management features that actually exceed what Fidelity offers in some cases.

For example, Robinhood offers free shares of stocks and cryptocurrencies for using its debit card, which it calls the Cash Card. Up to $10 of fractional coins and shares per week can be earned. These fractional assets are earned as a percentage of the card’s round-ups, which are capped at $100 per week.

Robinhood’s Cash Card is accepted in many places where Mastercard is accepted. However, the card will not work in several countries, including some popular travel destinations like Brazil and Thailand. There are roughly 90,000 ATMs that are free-free for the Robinhood Cash Card. Some ATM operators may charge forex fees, although Robinhood itself does not.

The Cash Card is connected to a spending account that receives FDIC protection but earns no interest. This account is free of any ongoing fees, and there’s no minimum balance requirement. Withdrawing cash instantly to an external bank account is subject to a 1.5% fee.

It’s possible to send a check from the Robinhood Spending Account, although there is no actual checkbook (the Fidelity CMA has an actual checkbook).

Robinhood Cash Sweep Rates

Robinhood offers very high interest rates on uninvested cash. Regular brokerage accounts get one rate, and Robinhood Gold members (membership is $5 per month) get much higher rate.

Standard account holders receive 1.5% APY in interest, paid every month.

Robinhood Gold members get 5% APY in interest, also paid monthly.

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Fidelity Cash Management Account Review Judgment

The Cash Management Account at Fidelity delivers a great deal of banking resources that can complement the company’s investing accounts. In fact, it’s possible to open just the CMA and invest in most securities with it. At Robinhood, a separate brokerage account is needed to accept deposits of free fractional shares, although if you use the card frequently enough, it may be a better deal. Global travelers should stick with Fidelity.

Updated on 1/6/2024.

About the Author
Chad Morris is a financial writer with more than 20 years experience as both an English teacher and an avid trader. When he isn’t writing expert content for, Chad can usually be found managing his portfolio or building a new home computer.