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Fidelity Cash Management Account
Fees
no monthly service fee
Annual Percentage Yield (APY)
2.72%
Minimum Opening Deposit
$0
- Solid interest rate
- No minimum opening deposit
- No monthly service fees
- Includes paper checks and a debit card
- Doesn’t charge out-of-network ATM fees
- Reimburses any fees charged by ATMs with Visa, Plus, or Star logos
- Other online accounts pay even higher interest rates
- Few physical locations
Product Details
- Online brokerage account that includes bank account features
- You can invest money in the account, but any money sitting uninvested in cash earns interest
- Interest compounds daily
- Cash balances are FDIC-insured
- Cash balances over $5 million may be swept into a money market fund, which is not FDIC-insured
The bottom line: The Fidelity Cash Management Account is a decent choice if you’re looking for an account that earns interest and allows you easy access to your cash — especially if you already have Fidelity investment accounts and want to do all your banking at one place. You can earn a higher rate with other cash management accounts, though.
Fidelity Cash Management Pros and Cons
Fidelity Cash Management Review
Cash management accounts are hybrid checking/savings accounts offered by online platforms.
The Fidelity Cash Management Account blends features of a checking, savings, and brokerage account. You can use it to store and save cash, easily accessing it with a debit card or ATM as needed. Cash balances earn interest, and you can use your funds to invest.
The account currently pays 2.72% APY, which is much higher than traditional savings and checking accounts. There are no monthly service fee and no minimum balance requirements. Interest is compounded daily and paid monthly.
Cash held in your account is FDIC-insured (up to $250,000 for a solo account and $500,000 in a joint account). If you have more than $5 million in cash, Fidelity will sweep it into money market funds, which are not FDIC-insured.
Is Fidelity Trustworthy?
Fidelity has an A+ rating from the Better Business Bureau, indicating the company responds to customer complaints effectively and is transparent about its business practices.
Following a cyber-security attack in November 2023, Fidelity is facing a class action lawsuit. Fidelity is accused of insufficient security and carelessness with customers’ data. The case is still pending.
A former employee also won a wrongful termination suit against Fidelity, while another sued the company for discrimination and a hostile workplace. The plaintiff of the latter lawsuit voluntarily dismissed the case the next year.
Fidelity Cash Management Account
Fees
no monthly service fee
Annual Percentage Yield (APY)
2.72%
Minimum Opening Deposit
$0
- Solid interest rate
- No minimum opening deposit
- No monthly service fees
- Includes paper checks and a debit card
- Doesn’t charge out-of-network ATM fees
- Reimburses any fees charged by ATMs with Visa, Plus, or Star logos
- Other online accounts pay even higher interest rates
- Few physical locations
Product Details
- Online brokerage account that includes bank account features
- You can invest money in the account, but any money sitting uninvested in cash earns interest
- Interest compounds daily
- Cash balances are FDIC-insured
- Cash balances over $5 million may be swept into a money market fund, which is not FDIC-insured
Fidelity Cash Management FAQs
Fidelity currently pays 2.72% APY on its cash management account. This number is subject to change, though, so be sure to check Fidelity’s website for the most up-to-date rates.
Fidelity’s Cash Management account is technically a brokerage account, though it’s not only for investing. You also get a debit card with the account, and it pays interest on uninvested cash — so you can use it for spending and saving your cash, as well.
The cash balance on your Fidelity Management Account is typically swept into an FDIC-insured account. Your funds are insured for up to $250,000 (for a solo account) and $500,000 (for a joint one). In certain cases, some funds may be swept into a money market mutual fund. These funds are not eligible for FDIC insurance.
Fidelity does offer “Investor Centers” throughout the country, though they’re not common and not in every state. The company currently has no locations in Alaska, Hawaii, Iowa, Louisiana, Mississippi, Montana, Nebraska, North Dakota, South Dakota, Vermont, West Virginia, or Wyoming.
How Fidelity Cash Management Compares
Fidelity Cash Management vs. Wealthfront Cash Account
Both Fidelity and Wealthfront are companies that specialize in investing but also offer cash management accounts. You can use both to save money, earn interest, and retain access to your funds via a debit card — all with no fees or minimum balances.
The big difference lies in the interest rates. While Fidelity’s current 2.72% APY rate is good compared to traditional savings and checking accounts, it’s significantly lower than the 5.00% APY you’ll earn with the Wealthfront Cash Account.
Fidelity Cash Management vs. Betterment Cash Reserve
Betterment is another company that helps you invest, spend, and save. The Betterment Cash Reserve Account could be considered comparable to Fidelity’s Cash Management Account — at least in basic features. It pays interest, has no monthly fees, and requires just a $10 minimum opening deposit. Betterment even offers up to $2 million in FDIC insurance, or $4 million for joint accounts.
Again, the big difference between these accounts is their interest rates. Betterment’s currently sits at 5.50% APY for new customers’ first three months, then 5.00% APY. You’ll earn the standard rate after the promotional rate ends, which is still significantly higher than what Fidelity pays.
Fidelity Cash Management Account
Fees
no monthly service fee
Annual Percentage Yield (APY)
2.72%
Minimum Opening Deposit
$0
- Solid interest rate
- No minimum opening deposit
- No monthly service fees
- Includes paper checks and a debit card
- Doesn’t charge out-of-network ATM fees
- Reimburses any fees charged by ATMs with Visa, Plus, or Star logos
- Other online accounts pay even higher interest rates
- Few physical locations
Product Details
- Online brokerage account that includes bank account features
- You can invest money in the account, but any money sitting uninvested in cash earns interest
- Interest compounds daily
- Cash balances are FDIC-insured
- Cash balances over $5 million may be swept into a money market fund, which is not FDIC-insured
Why You Should Trust Us: How We Reviewed the Fidelity Cash Management Account
To review Fidelity’s Cash Management Account, we rated the account using Personal Finance Insider’s checking account methodology and added an additional category for interest paid.
In general, we look at ethics, customer support, and mobile apps when rating a financial institution or product.
