Fidelity Change Sweep Account Simplifies Cash Management

The Fidelity Change Sweep Account is a game-changer for anyone looking to simplify their cash management. This account automatically sweeps excess cash from a linked checking account into a high-yield savings account, helping you earn more interest on your idle funds.

You can link multiple checking accounts to the Fidelity Change Sweep Account, making it easy to manage your cash flow across multiple accounts. This feature is especially useful for small business owners or individuals with multiple income streams.

By automatically sweeping excess cash into a savings account, you can earn up to 2.00% APY on your idle funds. This interest rate is competitive with other high-yield savings accounts, making it a great option for those looking to earn more on their cash.

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Fidelity offers a range of cash management options to help you make the most of your uninvested cash.

You can earn a competitive interest rate of 4.01% on your cash by opening a Fidelity brokerage account and adding money or setting up direct deposit. This is a great way to earn some extra interest on your cash without having to do much extra work.

Here are some simple steps to get started:

If you have uninvested cash, it's a good idea to make it work harder. One option is to open a Fidelity brokerage account.

By adding money or setting up direct deposit, your cash is automatically put in a money market fund. This fund can earn a decent interest rate, like 4.01%.

To get started, you'll need to open a Fidelity brokerage account. This will give you access to a range of investment options, including money market funds.

Here are the basic steps to make your uninvested cash work harder:

Fidelity is removing the option for RIAs to automatically sweep idle cash into high-yielding money market funds, starting later this year. This change will only affect new brokerage accounts opened by custody clients.

FCASH, Fidelity's core cash option, will become the only automatic cash choice available for all new brokerage accounts. FCASH is essentially a credit facility with Fidelity payable to the client at any time.

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Existing custody accounts and retirement accounts will not be impacted by this change. Clients will still be able to pull cash to trade from other money market funds if their FCASH account is depleted.

Fidelity's FCASH currently yields about 2.26%, which is higher than average for cash deposit accounts, but still less than the almost 5% yield of most money market funds.

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Your deposits are automatically swept into an interest-bearing FDIC-Insured Deposit Sweep position, which is managed by Fidelity to maximize your FDIC coverage.

The FDIC-Insured Deposit Sweep Program uses a list of banks, known as the Program Bank List, to distribute your deposits. This list includes 24 banks, such as US Bank, Goldman Sachs Bank USA, and Huntington National Bank.

Fidelity will automatically manage the money movement between the bank and your account, so you can't access or withdraw your cash by contacting the bank directly.

The Primary Program Bank is assigned to receive your account's deposits based on the Program Bank List assigned to your account. The first bank in the list is your Primary Program Bank.

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Here is a list of the Program Banks:

You can obtain the benefits of FDIC insurance eligibility in a Fidelity IRA through the FDIC-Insured Deposit Sweep Program.

The cash balance in your account will be automatically swept into an interest-bearing FDIC-Insured Deposit Sweep position.

FDIC insurance coverage is currently limited to $250,000 per qualified customer account per banking institution.

Fidelity may use several banks, rather than just one, to maximize your FDIC coverage, which is referred to as the Program Bank List.

The first bank listed below will be your Primary Program Bank.

For more information about FDIC insurance coverage, please visit the FDIC website at www.FDIC.gov.

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Your Primary Program Bank will be assigned based on the Program Bank List assigned to your account. This list is used to determine which bank will receive your account's deposits.

The Program Bank List is a list of participating banks that are part of the FDIC-Insured Deposit Sweep Program. The list is quite long, with 24 banks listed, including US Bank, Goldman Sachs Bank USA, and Huntington National Bank.

Your Primary Program Bank will be the first bank in the list, which is currently US Bank. You can view the full list by clicking on the "Show all 24 Program Banks" link.

You can't access or withdraw your cash by contacting the bank directly, as Fidelity will automatically manage the money movement between the bank and your account.