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Account Basics
Fidelity Cash Management
The Fidelity Cash Management Account is a versatile cash account offering features similar to checking and savings accounts. With this account, you can save, spend and invest. The account has no minimum balance requirement and no monthly maintenance fee.
You’ll also get free standard checks and a debit card. And there’s no need to stick to a specific ATM network; account holders get unlimited third-party ATM fee reimbursem*nts at any U.S. ATM displaying the Visa, Plus or Star logos. You can pay bills using your checkbook or set up a Fidelity BillPay account to make mobile bill payments. Speaking of mobile, you can also deposit checks into your Cash Management Account through Fidelity’s highly rated mobile app.
Cash management customers can also connect their account to several popular payment apps like Venmo and PayPal. You can also connect your debit card to digital wallets like Apple Pay and Google Pay.
Along with its many banking features, the account comes with FDIC coverage of up to $1.25 million through the use of Fidelity’s deposit sweep program. This coverage is offered through Fidelity’s partner banks. Typically, FDIC insurance covers $250,000 per depositor, per insured bank, for each account ownership category. The sweep program allows for cash management deposits into accounts at multiple banks, allowing Fidelity to protect deposits in its cash management account far beyond a standard bank account.
Although it’s not highly advertised on the Fidelity website, the Cash Management Account is an interest-bearing account. It earns an interest rate of 2.72% on all balances.
Fidelity Cash Management Account Fees
Fidelity’s Cash Management Account fees are practically nonexistent. However, if you use your Fidelity debit card abroad, you may see a 1% foreign transaction fee included in the amount charged to your account. If you complete an international wire transfer that requires a conversion from USD to a foreign currency, you may be charged up to 3% of the principal.
Other Fidelity Accounts and Services
In addition to its Cash Management Account, Fidelity offers several consumer investments and products and services, including:
- Brokered CDs
- Credit cards
- Life insurance
- Retirement accounts
- IRAs
- Sector investing
- Managed account services
- Wealth management
- Financial coaching
- Annuities
- 529 College Savings accounts
- Health Savings Accounts (HSAs)
- Mutual funds
- Stocks
- Bonds
- ETFs
- Options
Read our in-depth Fidelity Investments Review for details on investing and retirement accounts through the robo-advisor.
Access on the Go
Fidelity Cash Management Accounts are accessible online through Fidelity’s website or its mobile app. The Fidelity mobile app is available for iOS (4.8 stars out of 5 on the App Store) and Android (4.3 stars out of 5 on Google Play). Through the app, customers can:
- Manage Fidelity accounts
- Deposit checks
- Pay bills
- Transfer money
- Set up alerts and notifications
- Trade
- Manage orders
- View investment market research
- Access news and video
- Connect with Fidelity support
Fidelity’s website features a virtual support assistant to answer any basic questions regarding its products and services using a sizable knowledge base. You can also receive support via live chat Monday through Friday, 8 a.m. to 10 p.m. ET or by phone 24/7 at 800-343-3548.
Fidelity also offers some additional support options via social media, including a customer care channel on Reddit, a YouTube page, a Twitter handle and a Facebook page. You can also send messages via secure email to Fidelity through your online account or visit one of Fidelity’s 200 investor centers in person.
How Fidelity Stacks Up
Fidelity Cash Management certainly offers several benefits that make it an attractive alternative to a traditional checking account. It’s especially beneficial to individuals who already have a relationship with Fidelity since it’s possible to move money between the two accounts quickly.
Perks like mobile check deposit, check writing and unlimited ATM fee reimbursem*nts are a bonus. Unfortunately, Fidelity’s Cash Management Account earns very little interest. It’s a good alternative to an everyday checking account but no substitute for a high-yield checking or savings account. Compare your banking needs to what Fidelity Cash Management Accounts offer to determine if this account is right for you.
Fidelity Cash Management vs. Betterment
While both the Betterment Cash Reserveaccount and Fidelity’s Cash Management account boast no account fees or minimum balance requirements, Betterment is the clear front-runner when it comes to APY. Betterment’s Cash Reserve account currently earns a base rate of up to 5.50% APY after meeting activity requirements for the three months for new customers, then earn 4.75%, significantly higher than Fidelity’s 2.72% APY.
Betterment provides up to $2 million in FDIC insurance through its partner banks. You must be a Betterment Client to open a Cash Reserve account.
Fidelity Cash Management vs. Wealthfront
The Wealthfront Cash Account offers a competitive 5.00% APY, slightly higher than Betterment’s base APY and significantly higher than Fidelity’s 2.72% APY. Like Fidelity and Betterment, Wealthfront has zero account fees and no minimum balance requirements.
Wealthfront’s cash management account might be worth considering if you’re seeking a high APY and a place to store a large sum of money, as up to $8 million is FDIC-insured through Wealthfront’s partner banks. You can also get paid up to two days early with direct deposit.
Frequently Asked Questions (FAQs)
Is the Fidelity Cash Management Account a checking account?
The Fidelity Cash Management Account is technically a brokerage account, not a checking account. However, it was designed to function like a traditional checking account and includes many of the same benefits, such as debit card access, check writing and mobile check deposit.
Does the Fidelity Cash Management Account pay interest?
The Fidelity Cash Management Account currently earns 2.72% APY. Interest is accrued daily and paid monthly on the last business day of the month.
Is the Fidelity Cash Management Account FDIC-insured?
Uninvested cash balances in Fidelity’s Cash Management Account are eligible for FDIC insurance. Under Fidelity’s FDIC Deposit Sweep Program, an uninvested cash balance of more than $245,000 will be allocated across Fidelity’s partner banks to maximize your FDIC coverage. Under this program, you could have up to $5 million protected by FDIC insurance.
Fidelity may move balances greater than $5 million into a non-FDIC-insured money market fund. Fidelity is not responsible for monitoring your account balances to ensure they don’t exceed the FDIC coverage limit.
Information provided on Forbes Advisor is for educational purposes only. Your financial situation is unique and the products and services we review may not be right for your circ*mstances. We do not offer financial advice, advisory or brokerage services, nor do we recommend or advise individuals or to buy or sell particular stocks or securities. Performance information may have changed since the time of publication. Past performance is not indicative of future results.
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