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.
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.
Ratings Methodology
Rates asof Jul 12, 2024
Fidelity Cash Management Account
Member FDIC.
Rating image, 4.00 out of 5 stars.
4.00/5Our 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
Rating image, 4.00 out of 5 stars.
4.00/5Our 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
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 reimbursem*nts 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.
Compare checking accounts
We recommend comparing checking accounts to make sure you're getting the best fit for you. Here's a list of our favorite accounts.
| Account | APY | Promotion | Next Steps |
|---|---|---|---|
Open Account for Discover® Cashback Debit Member FDIC. Rating image, 5.00 out of 5 stars. 5.00/5Our 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. | 0% Min. to earn: N/A | Earn 1% cash back on up to $3,000 in debit card purchases each month (see details when you click 'Open Account') | Open Account for Discover® Cashback Debit |
Open Account for Axos Bank Rewards Checking Member FDIC. Rating image, 4.25 out of 5 stars. 4.25/5Our 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. | 0.40% (up to 3.30%) Rate infoTo 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 | Cash in on up to a $500 bonus† and up to 3.30% APY* with a new Rewards Checking account. Just use promo code RC500 before July 31. | Open Account for Axos Bank Rewards Checking |
Open Account for Quontic High Interest Checking Member FDIC. Rating image, 4.00 out of 5 stars. 4.00/5Our 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. | up to 1.10% Min. to earn: $1 | High APY when you complete 10 or more qualifying debit card purchases each month | Open Account for Quontic High Interest Checking |
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.
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
No. APYs are variable, meaning they can increase or decrease at any time. Convenience and services available are also important.
Absolutely. It's your money, and you can set up as many accounts as you need to manage it the way you want to.
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.
