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 3.30% as of July 7, 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 (July 2026)
The table below shows Fidelity’s main cash options. SPAXX is the default core position for most Fidelity brokerage and cash management accounts. The FDIC sweep is the default for the Cash Management Account for customers who prioritize FDIC protection.
| Option | 7-Day Yield | FDIC Insured | Notes |
|---|---|---|---|
| FDIC-sweep (default CMA) | Verify at fidelity.com | Yes (up to $5M) | Auto across 20+ program banks |
| SPAXX (Government MMF) | 3.30% as of 07/07/2026 | No (SIPC) | US gov securities; $456B fund |
| FDRXX (Government Cash Reserves) | Verify at fidelity.com | No (SIPC) | Alternative to SPAXX |
| FDLXX (Treasury-Only MMF) | Verify at fidelity.com | No (SIPC) | Treasury bills only |
SPAXX, FDRXX, and FDLXX yields track closely together since they hold similar government securities. All three have declined significantly from their 2023-2024 highs as the Federal Reserve cut rates. 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 at a stable $1.00 NAV (net asset value). The yield you earn is effectively the interest generated by the fund’s portfolio, passed through to shareholders daily.
Key facts:
- Fund inception: February 5, 1990
- Expense ratio: 0.42% (already factored into the yield figure you see)
- Portfolio net assets: ~$456 billion (June 30, 2026)
- NAV: $1.00 (stable – SPAXX does not fluctuate in price like a stock fund)
- Minimum investment: $0.00
- Weighted average maturity: 46 days (July 6, 2026)
The fund is required to invest at least 99.5% of its assets in US government securities, government repurchase agreements, or cash – making it one of the lowest-risk investment vehicles available.
What 3.30% Yield Means in Practice
At the current SPAXX yield of 3.30%, here is what different balances earn annually compared to a typical bank savings account:
| Balance | Annual Yield at SPAXX (3.30%) | Savings Account (0.01%) | Typical big-bank savings (0.5%) |
|---|---|---|---|
| $5,000 | $165 | $0.50 | $25 |
| $15,000 | $495 | $1.50 | $75 |
| $30,000 | $990 | $3.00 | $150 |
| $50,000 | $1,650 | $5.00 | $250 |
For customers with large cash positions sitting in a low-yield bank savings account, SPAXX remains meaningfully better than most traditional bank savings accounts even after the Fed rate cuts.
Switching Your Core Position to SPAXX
By default, Fidelity Cash Management Accounts use the FDIC-insured bank sweep as the core position. To switch to SPAXX:
- Log in at fidelity.com
- Go to Accounts & Trade – Account Features
- Click Core Position under your Cash Management Account
- Select SPAXX – Confirm
- Change takes effect the next business day
- All future uninvested cash automatically sweeps into SPAXX
Moving existing cash from the FDIC sweep to SPAXX:
- Go to Trade – Mutual Funds
- Search for SPAXX
- Buy using the dollar amount option
- Or: sell the FDIC sweep position, then reinvest proceeds in SPAXX
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 (July 2026) | 3.30% | Varies – verify at bank sites |
| Liquidity | Same-day within Fidelity | 1–3 day ACH to external bank |
| Account required | Fidelity brokerage or CMA | Separate bank account |
| Rate fluctuates | Yes (daily, tracks Fed rate) | Yes (bank can change anytime) |
SPAXX liquidity is an advantage for customers who already invest at Fidelity – cash is available same-day for trades or transfers within the account. Moving money to an external bank account still requires a standard ACH transfer (1–3 business days).
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. As of mid-2026, most high-yield savings accounts have declined from their 2023-2024 peak rates following Federal Reserve rate cuts.
SPAXX’s 3.30% yield is competitive with many online HYSAs, with the added advantage of same-day liquidity within Fidelity and no account minimums.
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: 3.30% as of July 7, 2026. This rate changes with the Fed funds rate – verify the current yield at fidelity.com before making decisions.
- The FDIC sweep earns less but provides up to $5M in FDIC coverage by spreading across 20+ partner banks.
- Switching to SPAXX takes one business day and is done through Account Features on fidelity.com.
- SPAXX is not FDIC insured. It invests in US government securities and is SIPC-protected, making it very low risk – but it is not a bank deposit.
Rates shown reflect the 7-day SEC yield as of July 7, 2026, sourced from Fidelity’s fund page. 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