TD Ameritrade 300

Fidelity Cash Sweep Rates (Brokerage Account Interest). Fidelity Money Market Fund Rates in 2022

Fidelity Investments uninvested cash sweep account options (FDIC bank, money market fund, SPAXX, FZFXX, FDRXX) vehicle choice. Fidelity brokerage\IRA account APY interest rates, insurance, and fees.

Fidelity Cash Sweep Account Options and Rates

Several options are available for uninvested cash in a Fidelity brokerage account. The broker provides an FDIC sweep program with its Cash Management Account. This is a hybrid brokerage-bank account. Securities can be traded in it, but it is designed primarily for cash management purposes. It comes with free checks and a Visa debit card. All deposits that aren’t used to purchase securities are swept into FDIC-insured banks that Fidelity has partnered with. Each Cash Management Account can have up to 5 program banks, which creates a maximum insurance limit of $1,250,000, much higher than the government’s normal $250,000 cap.

Interest is paid on funds swept to program banks. The APY is 0.01% for balances above $100,000. Accounts smaller than that earn just 0.01%. Besides the Cash Management Account, the FDIC sweep program can be used for an IRA and a 529 college savings plan.

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Fidelity Money Market Fund Rates

In a regular brokerage account, a money market mutual fund serves as the core position. Fidelity offers two funds that can be used for this purpose. The first is the Fidelity Government Money Market Fund (SPAXX). It is currently yielding 0.26%. The other is the Fidelity Treasury Fund (FZFXX). It is earning 0.25% right now. These funds can be used in either a retirement or non-retirement account. Other money market funds, including Fidelity Government Cash Reserves (FDRXX) can be used as an IRA’s core account.

Other Fidelity Cash Sweep Options

The third and final option for uninvested cash is to simply leave funds sitting in a brokerage account, where the money will be insured by SIPC. The insurance limit here is $250,000. This amount is taken from SIPC’s total $500,000 limit for cash and securities per account. So if you elected to leave $200,000 in a trading account, you would only be eligible for $300,000 of insurance for securities.


Majority of brokerage firms offer very low interest on investors' uninvested cash. TD Ameritrade's cash sweep rates, for example, are 0.01% too.

Ally Invest offers the highest in the industry rate of 0.6% APY on its online savings account that could easily be linked to its brokerage account.

M1 Finance offers a checking account that comes with 1.3% APY. However, that checking is part of the broker's M1 Plus program which costs $125 a year.

Fidelity Margin Rates

Debit Balance Margin Interest Rates
above $1,000,000 5.50%
$500,000 – $999,999 5.75%
$100,000 – $499,999 8.075%
$50,000 – $99,999 8.325%
$25,000 – $49,999 9.325%
$10,000 – $24,999 9.325%
$0 – $9,999 9.825%

Fidelity Cash Management

Besides offering three types of core positions, Fidelity also provides a lot of useful cash management features. For example, the broker offers free bill pay and a convenient overdraft protection feature. The broker’s mobile apps have check deposit. And a suite of Fidelity credit cards can deposit up to 2% of purchases into a brokerage account.

ATM fees incurred while using Fidelity’s Visa debit card are reimbursed for Cash Management Account holders. A regular brokerage account is not eligible for reimbursement, and it is also charged $1 per ATM withdrawal, after five per month.

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.