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Is Fidelity FDIC and SIPC Insured?
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Is Fidelity Protected by FDIC and SIPC?
Major Discoveries:
- At Fidelity, both FDIC and SIPC coverage are available.
- Both SIPC and FDIC protection have coverage limits, although Fidelity expands FDIC coverage by using multiple banks.
- Cryptocurrency held at Fidelity is not covered by SIPC or FDIC insurance.
SIPC Protection at Fidelity
Investment accounts at Fidelity, including brokerage and managed accounts, are covered by SIPC (the Securities Investor Protection Corporation). These insurance protections are backed by member broker-dealers like Fidelity and many others. If securities were ever missing from an account, this protection could apply.
An important point to remember is that SIPC does not cover changes in the market value of investments; it only protects the securities themselves.
SIPC protection always comes with maximum limits. The standard coverage amount is $500k per account category, per firm, per customer. By using different account structures and categories, it is possible to raise the total amount of SIPC coverage into the millions.
As the full name suggests, SIPC coverage mainly applies to securities, with cash as the main exception. That includes most investments Fidelity offers, although there are some exceptions. For example, cryptocurrencies are not securities, so they are not eligible for SIPC protection. Crypto ETFs, however, are securities and do qualify for SIPC coverage. Some alternative investments at Fidelity, such as private real estate, also would not qualify for SIPC protection.
Any uninvested cash held in a Fidelity account is eligible for SIPC protection. For cash, however, the maximum protected amount is reduced to half of the standard $500k limit.
FDIC Protection at Fidelity for Bank Accounts
Fidelity does not provide traditional bank accounts, so it does not directly provide FDIC coverage on standard bank deposits. What it does offer instead is an FDIC sweep tied to certain investment accounts. We’ll go over that program below.
FDIC Sweep at Fidelity
Fidelity automatically provides an FDIC sweep for some investment accounts. These include IRAs (Individual Retirement Accounts) and the CMA (Cash Management Account). The process is straightforward: unused cash is swept into partner banks, where it receives FDIC coverage and earns interest. Right now, the APY is just 1.84%.
Even though the cash is placed at partner banks, it remains available for immediate investing, which is clearly useful. Here is a sample of some FDIC-insured banks that Fidelity uses:
- Citibank N.A.
- Santander Bank N.A.
- Wells Fargo N.A.
- Fifth Third Bank
- Morgan Stanley Private Bank N.A.
Because Fidelity uses so many program banks, one client can qualify for up to $5 million in FDIC coverage. This limit applies per customer, per account category, so it can be raised further through different account arrangements.
Fidelity vs Main Rival Comparison
Read detailed Fidelity vs Charles Schwab comparison.
Opting out of Fidelity’s FDIC Sweep
If you want to switch from FDIC coverage to SIPC coverage or the other way around, that is possible for some Fidelity accounts. To check the core cash position for any Fidelity account, sign in to the website and open the online chat tool. The icon is usually in the upper-right corner.
Once the chat tool is open, type “change core cash position.” The AI chat assistant will show a list of your accounts; pick the one you want. The next message will display the current core position and any available alternatives for that account. If the chat assistant shows choices like SPAXX or FDRXX, those are money market mutual funds, which fall under SIPC protection. You can choose one of them to replace the FDIC sweep. If you want the FDIC sweep instead, look for the FDIC option. If it does not appear, then that account is not eligible for it.
Fidelity Review
Read detailed review of Fidelity investing »
Updated on 3/27/2026.
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 Brokerage-Review.com, Chad can usually be found
managing his portfolio or building a new home computer.
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