Does Fidelity Have Money Market Accounts?

Does Fidelity Have Money Market Accounts?

Fidelity does not offer traditional money market accounts like those found at banks or credit unions. Instead, Fidelity provides access to a range of money market mutual funds and exchange-traded funds (ETFs) that serve a similar purpose: a low-risk place to park cash while earning a competitive yield.

Money Market Funds vs. Money Market Accounts

The distinction matters for investors. A traditional money market account is a bank deposit product insured by the FDIC, typically with check-writing and debit card privileges. Fidelity's money market funds are mutual funds or ETFs that invest in short-term, high-quality debt securities. These funds are not FDIC insured, though they aim to maintain a stable $1.00 net asset value per share.

Fidelity's Money Market Fund Options

Fidelity offers several money market funds, including Fidelity Government Money Market Fund (SPAXX), Fidelity Cash Management Fund (FCASH), and Fidelity Municipal Money Market Fund (FZDXX). These funds vary in their underlying holdings, with some focusing on U.S. Treasury securities and others on a broader mix of government and corporate debt. Investors can buy these funds commission-free through a Fidelity brokerage account.

Who Should Use Fidelity's Money Market Funds

Money market funds at Fidelity work well for temporary cash reserves, emergency funds, or as a parking spot between investments. They provide liquidity and stability, though yields fluctuate with interest rates. For investors who want FDIC protection and check-writing features, a bank-linked money market account may be more appropriate.