Fidelity does not offer a traditional savings account or high-yield savings account (HYSA). Instead, uninvested cash in Fidelity accounts earns interest through a “core position” – either the FDIC-insured program bank sweep or a money market fund. The most widely used option is SPAXX (Fidelity Government Money Market Fund), which had a 7-day yield of 3.50% as of October 13, 2026. Rates change frequently with Fed policy – always verify the current yield at fidelity.com before making decisions.
Investment disclosure: SPAXX, FDRXX, and FDLXX are mutual funds, not savings accounts or bank deposits. Yields fluctuate and are not guaranteed. Investment return and principal value may fluctuate. Past performance does not guarantee future results. SPAXX is not FDIC insured.
Fidelity Money Market Fund Rates (October 2026)
The table below shows Fidelity’s main cash options. SPAXX is the default core position for new Fidelity retail brokerage accounts, unless the customer chooses another option. Cash Management Account customers can elect the FDIC-insured sweep if FDIC protection matters to them.
| Option | 7-Day Yield | FDIC Insured | Notes |
|---|---|---|---|
| FDIC-sweep (if elected, CMA) | Verify at fidelity.com | Yes (up to $4 million, counting any other deposits you hold at those banks) | Spread across several program banks |
| SPAXX (Government MMF) | 3.50% as of 10/13/2026 | No (SIPC) | US gov securities |
| FDRXX (Government Cash Reserves) | 3.57% as of 10/13/2026 | No (SIPC) | Alternative to SPAXX |
| FDLXX (Treasury-Only MMF) | 3.53% as of 10/13/2026 | No (SIPC) | Treasury bills only |
SPAXX, FDRXX, and FDLXX yields track closely together since they hold similar government securities. All three yield less than in 2023-2024, when the Fed’s target range was 5-1/4 to 5-1/2 percent; it is 3-3/4 to 4 percent now. Check current yields at fidelity.com – they update daily.
What Is SPAXX?
SPAXX is the Fidelity Government Money Market Fund. It is a mutual fund, not a bank account. When you hold “SPAXX” in your Fidelity account, you own shares of this fund, which seeks to hold its share price (net asset value) at $1.00 but cannot guarantee it.
Key facts:
- Share price: the fund seeks to hold $1.00 per share, but that is not guaranteed
- Minimum investment: $0.00
The fund normally invests at least 99.5% of its total assets in cash, US government securities and repurchase agreements. It is still not a bank deposit, and Fidelity’s prospectus says you could lose money by investing in it.
What a 3.50% Yield Means in Practice
At the SPAXX 7-day yield of 3.50% (as of October 13, 2026), and assuming that yield held for a full year, here is what different balances earn annually compared to the FDIC national average savings rate:
| Balance | Annual Yield at SPAXX (3.50%) | FDIC national average savings rate (0.37%, Sept 21, 2026) |
|---|---|---|
| $5,000 | $175 | $18.50 |
| $15,000 | $525 | $55.50 |
| $30,000 | $1,050 | $111 |
| $50,000 | $1,750 | $185 |
SPAXX’s yield is well above the FDIC national average savings rate shown above, though SPAXX is not FDIC insured.
Switching Your Core Position to SPAXX
Fidelity says a Cash Management Account’s core position is either SPAXX or the FDIC-Insured Deposit Sweep Program, chosen when you open the account. The menu path for changing it on an existing account is best confirmed on Fidelity’s help pages or by calling Fidelity.
Is SPAXX a Substitute for a High-Yield Savings Account?
Not exactly but for many purposes it serves the same function.
| Feature | SPAXX | Traditional HYSA |
|---|---|---|
| FDIC insured | No (SIPC-protected) | Yes (up to $250K) |
| Yield (October 13, 2026) | 3.50% (7-day) | Varies – verify at bank sites |
| Liquidity | Cash stays in your Fidelity account | Transfer time to and from other banks varies |
| Account required | Fidelity brokerage or CMA | Separate bank account |
| Rate fluctuates | Yes (yield may vary) | Yes (variable rate) |
SPAXX liquidity is an advantage for customers who already invest at Fidelity – cash stays in the account, where it can be spent or used to buy investments. Moving money between an external bank account and Fidelity goes through the ACH network, and Fidelity says an incoming transfer can take up to 4 business days to reach a Cash Management Account once the link is set up.
Fidelity Cash Compared to Online HYSAs
Specific HYSA rates change frequently. Before making any decision based on yield comparisons, verify current rates directly at each bank’s website.
SPAXX’s yield can be competitive with online HYSAs on a given day, and the fund has no purchase minimum.
Key Takeaways
- Fidelity has no traditional savings account or HYSA. Cash earns interest through a core position: FDIC sweep or a money market fund.
- SPAXX 7-day yield: 3.50% as of October 13, 2026. This rate changes with the Fed funds rate – verify the current yield at fidelity.com before making decisions.
- The FDIC sweep tends to earn less but offers FDIC coverage of up to $4 million by spreading cash across program banks.
- Core position choice: Fidelity says Cash Management Account holders choose SPAXX or the FDIC-insured sweep as their core position.
- SPAXX is not FDIC insured. It invests mainly in US government securities and is covered by SIPC, which protects against a brokerage failing but not against market losses – it is not a bank deposit, and you could lose money.
Rates shown are 7-day yields as of October 13, 2026, from Fidelity’s daily money market pricing report. Yields fluctuate daily and are not guaranteed. This article is for informational purposes only and does not constitute investment advice.
See also: Fidelity Cash Management review | Fidelity checking account | Best high-yield savings accounts | FDIC Insurance Guide
The content on Wealthvieu is for informational purposes only and should not be considered financial, tax, or investment advice. Consult a qualified professional before making financial decisions. Full disclaimer · Editorial policy