The Fidelity® Cash Management Account is a brokerage account designed for everyday spending and comes with many convenient cash management features. Cash Balances that you deposit into your Fidelity® Cash Management Account core position are held in an FDIC-Insured Deposit Sweep1and will earn a variable rate of interest, as indicated in the chart below.
The Cash Balance in your core position is eligible for FDIC insurance coverage subject to the applicable FDIC coverage limits. All assets of the account holder at the depository institution will generally be counted toward the aggregate limit.
|FDIC-Insured Deposit Sweep Balances2||Interest Rate (as of 10/06/2015)||APY3 (as of 10/06/2015)|
|$0.00 - $4,999.99||0.07%||0.07%|
|$5,000.00 - AND ABOVE||0.07%||0.07%|
Fidelity also offers the Fidelity Account®, a brokerage account, which is designed to meet all your trading and investing needs. The core position options available in the Fidelity Account include money market mutual funds available at Fidelity. These mutual funds may have comparable rates than the rates offered on the FDIC-Insured Deposit Sweep in the Fidelity® Cash Management Account. Keep in mind that the Fidelity Account, as an investment account, offers a different array of cash management features than the Fidelity® Cash Management Account. Listed below are two examples of the Fidelity money market funds available through the Fidelity Account, and their rates of return. You can also hold these funds as short-term investments within a Fidelity Account4. These money market funds are eligible for SIPC protection rather than FDIC insurance coverage.
|Example of Options Available for Your Cash||7-day Yield4 (as of 10/06/2015)||Effective Yield (as of 10/06/2015)|
|Fidelity Government Money Market||0.01%||0.01%|
|Fidelity Cash Reserves||0.01%||0.01%|
Performance data shown represents past performance and is no guarantee of future results. Current and future portfolio holdings are subject to risk. Investment return and principal value will fluctuate, so you may have a gain or loss when shares are sold. Current performance may be higher or lower than that quoted. Visit Fidelity.com/performance for the most recent month-end performance.
A Note about Differences in Rates of Return
The rate of return of the FDIC-Insured Deposit Sweep is shown as the interest rate that will be paid on Cash Balances in your Fidelity® Cash Management Account that are deposited at a Program Bank. The Annual Percentage Yield (APY) takes into account the effect of monthly compounding of the interest posted to your account. The rate of return of a money market fund is typically shown for a seven-day period, as is the case with Fidelity Cash Reserves displayed above, but is expressed as an annual percentage rate. It is referred to as the “7-day yield” and may change at any time based on the performance of the investments held by the money market fund. The effective yield on a money market fund reflects the effect of compounding of interest over a one-year period.
An investment in a money market fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the fund.
Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.