Review
Updated
Fact Checked
Ashley Maready
There's a lot about the Fidelity Cash Management Account that looks good; unlike most checking accounts, your balance pays interest. It's also super convenient if you already have a Fidelity brokerage account or plan to open one. In short, if you like to do all your banking under one roof, the Fidelity Cash Management Account is perfectly acceptable -- but other cash management accounts pay a higher interest rate. The APY may feel like a bit of a compromise, but Fidelity does a good job of sweetening the pot with some pretty great perks.
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Ratings Methodology
Rates as
of Apr 26, 2024
Fidelity Cash Management Account
Member FDIC.
Rating image, 4.00 out of 5 stars.
4.00/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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Rating image, 4.00 out of 5 stars.
4.00/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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APY
2.72%
Min. To Earn APY
$0
- Rate paid on easy-to-access cash is higher than you're likely to earn with a typical checking or savings account
- $0 minimum opening deposit
- No monthly service fee
- FDIC insured
- Robust enough to serve as your primary checking account
- No limit on the number of ATM fee reimbursements you receive
- Well-rated mobile app
- APY is lower than many cash management accounts and high-yield savings accounts
- There may not be a physical location near you
The Fidelity Cash Management Account looks a lot like a checking account, but it's not. Picture it as a brokerage account waiting room. It's where your uninvested cash sits while you decide what you want to do with it. The cool part is that Fidelity pays you interest on the money while it sits in the waiting room.
Full Fidelity Cash Management Account review
While this cash management account does not earn as much interest as some others, it offers a fair number of attractive features.
Top perks
Decent APY: 2.72% APY on uninvested cash is not bad, but it's nothing you'd want to brag about in the holiday letter to family and friends. In fact, we can pretty much guarantee you that if you did brag about earning 2.72%, at least one person in your life would point out how much better you can do with one of the best high-yield savings accounts.
$0 minimum: Let's face it; we like any financial establishment that removes entrance barriers, and Fidelity removes barriers by allowing anyone with a little extra cash to open an account.
No service fee: Can we all agree that fees are for people who don't mind giving their money away? You won't have to do that with a Fidelity Cash Management Account -- with one exception. There is a foreign transaction fee of 1% when you use your debit card outside of the U.S.
FDIC protection: Like money deposited into an FDIC-insured bank account, your funds are protected.
Can serve as a checking account: The Fidelity Cash Management Account is not a checking account, but it certainly acts like one. For example, you can have funds automatically deposited into your account, write checks, and set up bill pay to ensure all your bills are paid on time.
ATM fee coverage: Again, no one wants to spend money unnecessarily, including withdrawing funds from an ATM. When you are hit with a fee from an ATM featuring the Plus, Visa, or Star logo, Fidelity puts the money back into your account.
Nice mobile app: Both iOS and Android users give the Fidelity app a strong rating.
What could be improved
Unremarkable APY: This is where the big compromise comes into play. There are plenty of other financial institutions willing to pay you a higher APY on your cash. What's more, the funds would still be accessible when you need them.
Physical locations: If you plan to do all your business online, you probably won't care about physical locations. However, if you want to be able to walk into a branch, there may not be one located near enough to your home to make it feasible. For example, in the state of Maine, the only Fidelity branch is located in Portland. In Kansas, the single branch is in Overland Park.
Checking account comparison
We recommend comparing checking account options to ensure the account you're selecting is the best fit for you. To make your search easier, here's a short list of standout accounts.
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| Account | APY | Promotion | Next Steps |
|---|---|---|---|
Rating image, 4.00 out of 5 stars.
4.00/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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= Excellent
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0%
Min. to earn: N/A
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Earn 1% cash back on up to $3,000 in debit card purchases each month (see details when you click 'Open Account')
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Rating image, 4.75 out of 5 stars.
4.75/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
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0.50%
Rate info
You can earn the maximum savings APY by having Direct Deposit (no minimum amount required) or by making $5,000 or more in Qualifying Deposits every 30 days. See SoFi Checking and Savings rate sheet at: https://www.sofi.com/legal/banking-rate-sheet.
Min. to earn: $0
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Cash bonus up to $300 with direct deposit set up (see details when you click 'Open Account')
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Rating image, 4.25 out of 5 stars.
4.25/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
0.40% (up to 3.30%)
Rate info
To earn the full APY, account holders must do all of the following: Receive monthly direct deposits totaling more than $1,500; make 10 transactions a month with your Axos debit card, or sign up for Axos's Personal Finance Manager; maintain an average daily balance of $2,500 per month in an Axos Invest Self Directed Trading Account; and use your Rewards Checking account to make your full monthly Axos Bank consumer mortgage, personal, or auto loan payment.
Min. to earn: Monthly direct deposits totaling at least $1,500
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Use promo code AXOS300 and apply by June 30th, to earn up to a $300 bonus!
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Alternatives to a Fidelity Cash Management Account
If Fidelity doesn't have what you're looking for in the way of cash management, one of these other investment firms might.
Wealthfront Cash Account
For as little as $1, you can open a Wealthfront Cash Account and earn an impressive APY of 5.00%. Like Fidelity, you won't get hit with account fees. You'll also have access to unlimited transfers and free same-day withdrawals, and up to $8 million in FDIC insurance through Wealthfront partner banks.
Webull Cash Management
Not to be repetitive here, but Webull's cash management account also earns a 5% APY, has no account opening or monthly service fees, requires no minimum balance, and sometimes offers promotional rate "bumps'' for meeting specific criteria.
Is a Fidelity Cash Management Account right for you?
The Fidelity Cash Management Account is a good fit if you:
- Already use Fidelity's brokerage services and want a convenient way to move fresh cash into your investment accounts.
- Live near a Fidelity brick-and-mortar location and like the idea of walking in to do your business.
- Solely use a cash management account as a quick pitstop for money that's about to be invested via another account.
- Want a cash management account that allows you to write checks and make debit card purchases.
Other Fidelity accounts:
- Rollover IRA
- Traditional IRA
- Roth IRA
- The Fidelity Account®
- Fidelity Crypto®
- Fidelity Bloom®
- SEP IRA
- Small Business HSA
- 529 Account
- Fidelity® Youth Account
- Fidelity Go®
- Portfolio Advisory Services
Our checking account methodology
At The Motley Fool Ascent, we rate checking accounts on a five-star scale (1 = poor, 5 = best). We evaluate all checking accounts across four main criteria: brand and reputation, APY and rewards, fees and minimum requirements, and perks.
Our scores are weighted as:
- Brand and reputation: 30%
- APY and rewards: 30%
- Fees and minimums: 15%
- Other perks: 15%
Learn more about how The Motley Fool Ascent rates bank accounts.
FAQs
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No. APYs are variable, meaning they can increase or decrease at any time. Convenience and services available are also important.
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Absolutely. It's your money, and you can set up as many accounts as you need to manage it the way you want to.
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Fidelity customers with investment accounts may be able to use the cash management account the most effectively. By keeping the cash they want to invest in the cash management account while they decide where to invest, they accomplish two things: They routinely have money in the "batter's box," ready to go when the opportunity presents itself, and rather than linger, that money draws interest.
Our Banking Experts
Dana George has a BA in Management and Organization Development from Spring Arbor University. For more than 25 years, she has written and reported on business and finance, and she's still passionate about her work. Dana and her husband recently moved to Champaign, Illinois, home of the Fighting Illini. And though she finds the color orange unflattering on most people, she thinks they'll enjoy Champaign tremendously.
Fact Checked
Ashley Maready
Ashley Maready is a former history museum professional who made the leap to digital content writing and editing in 2021. She has a BA in History and Philosophy from Hood College and an MA in Applied History from Shippensburg University. Ashley loves creating content for the public and learning new things so she can teach others, whether it's information about salt mining, canal mules, or personal finance.
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We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. The Ascent, a Motley Fool service, does not cover all offers on the market. The Ascent has a dedicated team of editors and analysts focused on personal finance, and they follow the same set of publishing standards and editorial integrity while maintaining professional separation from the analysts and editors on other Motley Fool brands.
Fidelity disclaimers
The Fidelity Cash Management account is a brokerage account designed for investing, spending and cash management. Investing excludes options and margin trading. For a more traditional brokerage account, consider the Fidelity Account.
*Zero account minimums and zero account fees apply to retail brokerage accounts only. Expenses charged by investments (e.g., funds, managed accounts, and certain HSAs) and commissions, interest charges, or other expenses for transactions may still apply. See Fidelity.com/commissions for further details.
**Your account will automatically be reimbursed for all ATM fees charged by other institutions while using a Fidelity® Debit Card linked to your Fidelity Cash Management Account at any ATM displaying the Visa®, Plus®, or Star® logos. The reimbursement will be credited to the account the same day the ATM fee is debited from the account. Please note that there may be a foreign transaction fee of 1% that is not waived, which will be included in the amount charged to your account. The Fidelity® Debit Card is issued by PNC Bank, N.A., and the debit card program is administered by BNY Mellon Investment Servicing Trust Company. These entities are not affiliated with each other or with Fidelity Investments. Visa is a registered trademark of Visa International Service Association, and is used by PNC Bank pursuant to a license from Visa U.S.A. Inc.
***The Cash Balance in the Fidelity Cash Management Account is swept into an FDIC-Insured interest-bearing account at one or more program banks and, under certain circumstances, a Money Market mutual fund (the "Money Market Overflow"). The deposits swept into the program bank(s) are eligible for FDIC Insurance, subject to FDIC insurance coverage limits. Balances that are swept to the Money Market Overflow are not eligible for FDIC insurance but are eligible for SIPC coverage under SIPC rules. At a minimum, there are 20 banks available to accept these deposits, providing for up to $5,000,000.00 of FDIC insurance. If the number of available banks changes, or you elect not to use, and/or have existing assets at, one or more of the available banks, the actual amount could be higher or lower. All assets of the account holder at the depository institution will generally be counted toward the aggregate limit. For more information on FDIC insurance coverage, please visit www.FDIC.gov. Customers are responsible for monitoring their total assets at each of the Program Banks to determine the extent of available FDIC insurance coverage in accordance with FDIC rules. The deposits at Program Banks are not covered by SIPC.
****The Fidelity Cash Management account is a brokerage account designed for investing, spending and cash management. Investing excludes options and margin trading. For a more traditional brokerage account, consider the Fidelity Account.
Dana George has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Visa. The Motley Fool has a disclosure policy.