The Cash Balance1 in your core position that is swept to Program Banks 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.
The interest rates for amounts that are swept to the Program Banks are:
|FDIC-Insured Deposit Sweep Balances2||Interest Rate (as of 03/31/2023)||APY (as of 03/31/2023)|
|$0.00 - $99,999.99||2.44%||2.47%|
|$100,000.00 - AND ABOVE||2.44%||2.47%|
Money Market Mutual Fund Overflow
The Money Market Mutual Fund Overflow ("Money Market Overflow") is a component of the FDIC Sweep Program which provides that, for cash balances that exceed FDIC insurance coverage limits, or cannot be swept to a Program Bank due to either a lack of bank capacity or unavailability of FDIC insurance, your funds will instead be swept into the Money Market Overflow feature. Funds swept into the Money Market Overflow will be held in the Fidelity Government Money Market Fund* – Class S (FZSXX | Get Prospectus).
Once your funds are placed in the Money Market Overflow fund, these funds will be the first funds that are used to settle any debits or withdrawals from your account.
Note: Funds held in the Money Market Overflow are not FDIC Insured. The MMKT Overflow is not available for purchase as a stand-alone investment but is a component of the FDIC Insured Deposit Sweep Program.
Please see the FDIC Insured Deposit Sweep Program Disclosure for more details.
Listed below are examples of the Fidelity money market funds available and their rates of return. See more information on these and other money market funds.
|Fidelity Money Market Fund||7-day Yield3 (as of 03/31/2023)||Effective Yield (as of 03/31/2023)|
|Fidelity Government Money Market||4.48%||4.57%|
|Fidelity Government Cash Reserves||4.51%||4.59%|
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.
*Fidelity Government Cash Reserves or Fidelity Government Money Market Fund are also available as a core position in Fidelity IRA Accounts.
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 IRA 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, 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 into an FDIC-Insured interest bearing account at one or more program banks and, under certain circumstances, a money market mutual fund (the "Money Market Overflow"). 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/IRACoreBanks to see a list of Program Banks and the FDIC Disclosure Document.
- 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.