| Fidelity Cash Management Account Key Features | |
|---|---|
| APY Range | 2.72% |
| Minimum Balance to Earn Highest APY | No minimum, any non-zero balance |
| Minimum Deposit | $0 |
| Withdrawal Limit | No limit on the number of monthly withdrawals. (Debit card may have daily spending limits and electronic funds transfer has daily amount limits) |
| Monthly Service Fee | $0 |
While the interest rates you can earn on your savings matter, it’s important to look beyond the APYs on your cash deposits and consider the other features a deposit account offers.
Interest rates on the Fidelity Cash Management Account are above average, but they’re usually not the highest APYs you can find. Yet the account does come with other notable features that could make it a good fit for individuals who are looking for an alternative to a traditional checking or savings account.
One convenient aspect is the fact that there are no minimum deposit requirements to meet. You don’t have to worry about paying any monthly fees to maintain your account, either. Customers get free online bill pay and free unlimited check writing, as well mobile check deposit capabilities.
Another big perk of using the Fidelity Cash Management Account comes in the form of global ATM fee reimbursem*nt. If you use a Fidelity debit card at an eligible ATM (any ATM with the Visa, Plus, or Star logo) to withdraw cash, Fidelity will credit your account for all ATM fees deducted from your account. In most cases, fee reimbursem*nt happens the same day.
The account offers you the flexibility to invest, save, or spend your money. Any uninvested cash balance you keep in your Fidelity Cash Management Account is eligible for insurance coverage through the Federal Deposit Insurance Corporation (FDIC).
The Federal Deposit Insurance Corporation will insure your deposits for up to $250,000 (per depositor, per FDIC-insured bank, per account ownership category) if you bank with a financial institution that’s a member of the FDIC.
Keep in mind that the Fidelity Cash Management Account is technically not a bank account but a brokerage account. However, the company works with partner banks to create Fidelity’s FDIC Insured Deposit Sweep Program.
Through the deposit sweep program, Fidelity will distribute the uninvested cash balance from your Fidelity Cash Management Account into different bank accounts—up to $245,000 per account—to make sure you stay below FDIC insurance limits. You could enjoy up to $5 million worth of FDIC insurance through your cash management account, assuming the partner banks in Fidelity’s deposit sweep program have available capacity.
About Fidelity: Other Account Options
Fidelity Investments is not a bank but an online broker that serves over 43 million customers. In addition to its online trading platform, the Boston-based company also offers financial planning services and wealth management advice through human advisors, in addition to offering a robo-advisor service.
The Fidelity investment platform doesn’t offer many traditional deposit accounts, like savings or money market accounts, but you can work with Fidelity to open other types of investment accounts:
- IRAs (Roth, traditional, and rollover)
- Brokerage accounts
- Crypto trading accounts
- 529 accounts
- Cash management accounts
Customers that use Fidelity have access to mutual funds, options, currencies, and a variety of fixed-income products like bonds (e.g., treasury bonds, corporate bonds, municipal bonds) and CDs. Investors can also take advantage of their robo-advisor, Fidelity Go, by opening an account, and accessing it on Fidelity’s website or mobile app.
Alternatives to Fidelity Cash Management Account
You can use Fidelity cash management account to earn returns on your cash, but other options can potentially earn higher returns while providing FDIC protection that minimizes risk. Alternatives include bank savings accounts, checking accounts, CDs, high-yield savings or checking accounts, and savings accounts with online banks.
Pros and Cons of Fidelity Cash Management Account
Pros
Earn returns on your cash
ATM reimbursem*nt
No minimum withdrawal limit
Cons
Lower returns than alternatives
Daily spending limits
Pros explained
- Earn returns on your cash: You can earn returns on your cash with FDIC protection.
- ATM reimbursem*nt: Fidelity will reimburse ATM fees on any ATM with the Visa, Plus, or Star logo. Typically, your account will be credited the same day.
- No minimum withdrawal limit: You can make unlimited withdrawals from your account, so you can more easily access cash when you need it.
Cons explained
- Lower returns than alternatives: While you can earn returns on your money with Fidelity Cash Management account, you can find many other accounts have higher yields, including many high-yield savings accounts.
- Daily spending limits: The debit card may have daily spending limits, and you could have a limit on the amount of money you can transfer at once.
Frequently Asked Questions (FAQs)
Does Fidelity Have a High-Yield Savings Account?
Fidelity doesn’t offer its customers traditional deposit accounts like savings accounts—high-yield or otherwise. However, Fidelity partners with several banks to make its Cash Management Account available to customers who want an account to meet basic banking needs and earn interest on their cash savings at the same time. Its APYs, unfortunately, don’t usually stack up to the best high-yield savings accounts available now.
What’s the Minimum Balance for a Fidelity Savings Account?
There are no minimum deposit requirements you must meet to open a Fidelity Cash Management Account. Similarly there are no monthly balance requirements to avoid fees, as the account doesn't even charge any monthly fees.
What Do You Need to Open a Fidelity Savings Account?
In most cases, you can open a Fidelity Cash Management Account by completing an online application. You can open both a Fidelity Cash Management Account and a Fidelity brokerage account in a single online session, if you’d like. If your cash management account features any special trust registrations, however, the process is slightly different. Accounts with trust registrations require you to download, print, and complete a PDF application form.
How Often Does Fidelity Pay Interest?
Interest accrues daily on the Cash Management Account, and Fidelity pays customers interest on the last business day of the month (for balances swept into partner banks through the Deposit Sweep Program). Keep in mind that if you opt to invest the money in your Fidelity Cash Management Account, it’s not eligible to earn interest.
