Your HSA core position is where we'll keep your cash before you invest it. You can choose to invest in an FDIC-Insured Deposit Sweep1, or Fidelity Government Cash Reserves a money market fund 2.
Following are the current rates for the FDIC-Insured Deposit Sweep.
|FDIC-Insured Deposit Sweep Balances3||Interest Rate (as of 08/07/2020)||APY (as of 08/07/2020)|
|$0.00 - $4,999.99||0.01%||0.01%|
|$5,000.00 - AND ABOVE||0.01%||0.01%|
Effective April 17, 2020, the method and timing for setting interest rates on the FDIC Insured Deposit Sweep has changed. For more information about the change, please review the updated FDIC Insured Deposit Sweep Program Disclosure document (the "Document"). Timing will be driven in part by meetings of the Federal Open Market Committee ("FOMC"), the Federal Reserve committee that makes key decisions about benchmark interest rates. You can find a calendar of scheduled FOMC meetings here: https://www.federalreserve.gov/monetarypolicy/fomccalendars.htm. Your continued use of your Account and/or the Program after publication of the rates as described in the updated Document will constitute your affirmative consent to the rates.
The chart below compares a Fidelity Money Market fund and the Fidelity Government Cash Reserves fund and their respective rates of return. Other money market funds may also be available to you as liquid investment options. To learn more, call us at 800-544-6666.
|Fidelity Money Market Fund||7-day Yield4 (as of 08/07/2020)||Effective Yield (as of 08/07/2020)|
|Fidelity Government Money Market||0.01%||0.01%|
|Fidelity Government 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 HSA 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 Government 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.
You could lose money by investing in a money market fund. Although the fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. An investment in the fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Fidelity Investments and its affiliates, the fund's sponsor, have no legal obligation to provide financial support to money market funds and you should not expect that the sponsor will provide financial support to the fund at any time.
Fidelity's government and U.S. Treasury money market funds will not impose a fee upon the sale of your shares, nor temporarily suspend your ability to sell shares if the fund's weekly liquid assets fall below 30% of its total assets because of market conditions or other factors.
- The Cash Balance in the FDIC-Insured Deposit Sweep is swept to an FDIC-Insured interest-bearing account at a Program Bank. The deposit at the Program Bank is not covered by SIPC. The deposit is eligible for FDIC insurance subject to FDIC insurance coverage limits. All assets of the account holder at the depository institution will generally be counted toward the aggregate limit. For more information about FDIC insurance coverage, please visit the FDIC Web site at www.FDIC.gov or call 877-ASK-FDIC. As referenced in the FDIC-Insured Deposit Sweep Program Disclosures, customers are responsible for monitoring their total assets at a Program Bank to determine the extent of available FDIC insurance. All FDIC insurance coverage is in accordance with FDIC rules. Go to Fidelity.com/HSACoreBanks to see a list of Program Banks and the FDIC Disclosure Document.
- See your Fidelity Brokerage HSA Customer Agreement for details on the core position of your Fidelity HSA.
- To determine the interest rate tier you are eligible to receive, we look at the Cash Balance in your FDIC-Insured Deposit Sweep as-of the end of business each day. Interest rates may change at any time. See the FDIC-Insured Deposit Sweep Program Disclosures for more information.
- The rate reflects 7-day yield with no compounding and is also published on Fidelity.com/moneymarketfunds.