Fidelity Cash Management Account Interest Rates: October 2024

At just 2.72% APY, the Fidelity Cash Management Account doesn’t provide anywhere near the highest interest rates available on savings accounts. Yet at the time of publication, interest rates on the Fidelity Cash Management Account are many times higher than the national average APY for savings accounts and several dozen times higher than the national average APY for checking accounts. The account features no minimum balance requirements, no monthly maintenance fees, free checks, and free ATM access.

Fidelity Investments, commonly referred to as Fidelity, is a top choice when you’re looking for a low-cost online broker. The same company also offers other financial services to its customers, including the Fidelity Cash Management Account, which shares many features of both savings and checking accounts. In fact, you can use this flexible account to spend, save, or invest your cash. 

Compare Fidelity Cash Management Account Rates

Fidelity’s Cash Management Account outperforms the average national APYs for both savings and checking accounts. The account also exceeds the national average APYs for money market accounts and CDs.

However, you can find higher interest rates by shopping around. Compare what Fidelity offers with its Cash Management Account to the rates on these other accounts from our partners. 

Fidelity Cash Management Account: Key Features

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 reimbursement. 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 reimbursement 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). 

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.

Pros and Cons of Fidelity Cash Management Account

Pros Explained

• Earn returns on your cash: You can earn returns on your cash with FDIC protection.
• ATM reimbursement: 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.

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 high-yield savings accounts and checking accounts, CDs, and money market accounts.

Frequently Asked Questions (FAQs)