December 2, 2023

Fidelity High Yield Savings Review

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Fidelity boasts an all-around account with no fees and a decent APY. But there's even more to discover. Keep reading.

5-point scale (the higher, the better)

Pros and Cons

  • $0 monthly service fee
  • No minimum balance
  • Free debit card
  • Relatively low APY
  • Few physical branches

Bottom Line

Cash management account with a decent APY

Fidelity is a popular firm with various financial products and services. That includes a multi-purpose Cash Management Account with an adequate rate and great accessibility.

But is that all there is to it? Learn more about this high-yield savings account from Fidelity.

Does Fidelity Have a High-Yield Savings Account?

Fidelity currently does not have a high-yield savings account. In fact, it is not a bank but a brokerage firm so it does not offer typical deposit products.

Instead, Fidelity offers a Cash Management Account that pays a better-than-average rate.

What is Fidelity Cash Management Account?

Fidelity's Cash Management Account is a brokerage account that consolidates your spending, savings, and investing in one convenient location.

It allows users to earn 2.72% APY on all balances. And, it has $0 account fees and no minimum balance, giving you more flexibility to save and spend your money.

Although it is not a traditional savings account, you can receive FDIC insurance through Fidelity's FDIC-Insured Deposit Sweep Program.[1]

Upon opening an account, your cash balance is distributed into interest-bearing accounts among their FDIC-insured partner banks.

You can get higher coverage than in a regular checking or savings account since your money is split into multiple banks, each giving you up to $250,000 coverage on your deposits.[2]

For example, if you put $500,000 into your Cash Management Account, Fidelity will split it strategically. $245,000 goes to two banks, and $10,000 to another. This way, they stay just below the $250,000 FDIC limit for each bank even when your money earns interest.

How Much Can You Earn?

Use this calculator to see how much your money can grow with Fidelity's Cash Management Account.

Savings Calculator

Other Features of Fidelity Cash Management

The Fidelity Cash Management account combines various financing features into one. Here's what you can do with this account:

  • Manage your transactions and pay bills Fidelity's mobile app
  • Mobile check deposits
  • Access to ATMs globally with your debit card
  • Unlimited ATM fee reimbursements
  • Access various investment options for short-term and long-term goals

Is a Fidelity Cash Management account the same as a checking account?
Not really. Fidelity's Cash Management account is a brokerage account that combines the features of a checking account, a savings account, and an investment account into one product.

Fees to Look Out For

Fidelity's Cash Management Account virtually has no fees for you to worry about. Here's a rundown:

  • $0 monthly charges
  • No opening deposit
  • No minimum balance requirement
  • Unlimited ATM fee reimbursements

Pros and Cons


  • $0 monthly maintenance fees
  • No minimum balance requirement
  • Complimentary debit card
  • Worldwide ATM access
  • Unlimited ATM fee reimbursements


  • Relatively low APY at 2.72%
  • Limited physical branches

How to Open an Account?

Here's a simple step-by-step process on how to open a Fidelity Cash Management Account:

  1. Visit Fidelity's official website, select "Open an Account," and choose Cash Management Account.
  2. Fill out the online application form.
  3. Set up your account login details if applicable.
  4. Fund your account via direct deposit, mobile check deposit, or electronic funds transfer.

Can you withdraw cash from a Fidelity Cash Management Account?
Yes, you can withdraw cash from your Fidelity Cash Management Account because it comes with a debit card that you can use globally.

Who Is It Best For?

Fidelity's Cash Management Account is best for individuals who want a spending account and a savings account in one convenient location.

It can provide great accessibility since it comes with a debit card and a simple mobile banking platform. You also earn a modest APY on your cash balance, allowing you to grow your funds passively.

This is also suitable for people with extra funds. You can deposit more money knowing that Fidelity allocates your money to multiple FDIC-insured banks which can get you increased coverage.

Is Fidelity Safe?

Yes, it is. Cash balances in your Fidelity Cash Management account are put into FDIC-insured, interest-bearing accounts at one or more partner banks. Thus, your deposits are covered up to $250,000 per insured bank.[3]

However, note that balances of over $5 million will be moved into a Money Market Overflow account with no FDIC insurance coverage but are eligible for SIPC coverage under SIPC rules.[4]

But remember that Fidelity is not a bank and that this is a brokerage account. Only cash balances are eligible for FDIC insurance.

How It Compares to Other Banks

Compound Interest Calculator

Bottom Line

The Fidelity Cash Management Account is a perfect three-in-one product with spending, saving, and investing features.

Users can earn some interest while having easy access to their funds. You can also enjoy limitless ATM fee reimbursements and increased FDIC insurance coverage.

If any of this sounds appealing to you, check out Fidelity's Cash Management Account.



Free Gold IRA Kit

  • Up to $10,000 in free silver for eligible customers
  • Highest buyback price, guaranteed
  • Endorsed by Sean Hannity and Chuck Norris

$20 Investment Bonus

  • Open an Acorns account (new users only)
  • Set up the Recurring Investments feature
  • Have your first investment be made successfully via the Recurring Investments feature

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Editorial Note: Any opinions, analyses, reviews or recommendations expressed on this page are those of the author's alone, and have not been reviewed, approved or otherwise endorsed by any card issuer.

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