Why I'm Leaving My Bank for the Fidelity Cash Management Account
Video Overview & Insights
I've decided to move most of our checking account funds to the Fidelity Cash Management Account. In this video I'll walk through why I'm making this move.
It's a convenience decision, not a financial game-changer.
If you switched to Fidelity, you wouldn't suddenly:
Make more money.
Build wealth automatically.
Get passive income.
Spend less.
You'd still:
Get your paycheck.
Pay your bills.
Buy groceries.
Use a debit card.
Repeat every two weeks.
The "perks" are relatively modest:
Potentially higher interest on cash that's sitting in the account.
Broad ATM access with fee reimbursements.
Easy integration with Fidelity's investment and retirement accounts if you ever want them.
If none of those matter to you today, then there's no compelling reason to leave a credit union that you're happy with.
A good analogy is this:
Toyota Camry vs. Honda Accord.
Both get you to work every day. One may have a few features you like better, but neither changes your life just because you switched.
Fidelity CMA: https://www.fidelity.com/spend-save/fidelity-cash-management-account/overview
Fidelity SPAXX: https://fundresearch.fidelity.com/mutual-funds/summary/31617H102
An educational video
Finance Buff Article 1: https://thefinancebuff.com/fidelity-cash-management-checking-savings.html
Finance Buff Article 2: https://thefinancebuff.com/best-fidelity-money-market-fund-your-tax-rates.html
Could you do both at same time or just stick to one
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I checked my SPAXX account today and it only paid $1
*Financial tools I use:*
*I track all of my investments, performance, fees, and asset allocation with Empower. It's Free:*
Does fidelity cash management account pay interest monthly
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*My retirement plan comes from New Retirement, the most robust retirement planner available at a reasonable cost:*
How much did Fidelity pay you to put this video up?
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*I used Capitalize for my last 401(k) rollover. They did all of the work, and it's Free:*
Cma spaxx sounds great but is there taxes to be paid at the end of the year for those earnings ???
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*My budgeting tool of choice is Tiller. It downloads all your banking data to Excel or Google Sheets:*
Opened my CMA last week and followed the advice to PUSH my money there, within 2-3 days max it was showing. Still keeping a checking account at my local bank cause I like to use Zelle and also when I need cash. I dislike using an atm!
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*We save and invest our credit card rewards. Here are some of my favorite credit cards:*
As of today, May 2026, I seven day yield is 3.26%
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*My Book (Retire Before Mom and Dad):*
Does anyone reccomend this for young people? I am 22 and thinking of using this as my primary checking account.
https://amzn.to/4d9qbhA
Timestamps
ah the good ole days when you could get 4.96% on your SPAX
0:00 - Fidelity Cash Management Account
1:45 - SPAXX
Break the buck is a racist term
4:43 - FDIC Insurance/Partner Banks
7:54 - Downsides
It's not insured money
10:36 - Other money market funds
11:40 - Finance Buff article
Is it possible for an American citizen living abroad to open an account?
12:17 - Recap
#fidelity #cash #robberger
how does this work if youre constantly using and pulling from it though are you taxed on the returns when you make a transaction?
ABOUT ME
While still working as a trial attorney in the securities field, I started writing about personal finance and investing In 2007. In 2013 I started the Doughroller Money Podcast, which has been downloaded millions of times. Today I'm the Deputy Editor of Forbes Advisor, managing a growing team of editors and writers that produce content to help readers make the most of their money.
I've been listening to financial and retirement podcasts and videos for years and came across your channel today. I have learned more from you today than I have in past months combined. I've been dying to learn new things. Thank you!!
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Fidelity is not a bank. Once your money goes in they refuse to give it back. It's like a black hole...
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Expense ratio at 0.42%...ouch.
So, why do the legacy, brick and mortar local banks, not pay a similar, equal, or even a better rate, than many online companies?
One would think keeping the funds locally would be a boon for the surrounding population.
Twitter: https://twitter.com/Robert_A_Berger
DISCLAIMER: I am not a financial adviser. These videos are for educational purposes only. Investing of any kind involves risk. Your investment and other financial decisions are solely your responsibility. It is imperative that you conduct your own research and seek professional advice as necessary. I am merely sharing my opinions.
Their hold time for deposited checks has gotten absurdly long. Yeah, I know they did it to reduce fraud by crooked customers. Our Fidelity guy told us to deposit checks at our credit union, then push the money to our FCM account. That works, but what a pain.
AFFILIATE DISCLOSURE: Some of the links on this channel are affiliate links, meaning at no cost to you I earn a commission if you click through and make a purchase and/or subscribe. However, I only recommend products or services that (1) I believe in and (2) would recommend to my own mom.
Thank you for this great video! If I chose the FDIC account when opening the account, am I able to switch to the non-FDIC account?
More User Perspectives
Have 2 major issues:
1.Essentially a 3 week hold on ALL electronic deposits. Regardless of account know and used for Fidelity funding in past.
<which means if traveling most keep a larger amount in account or not be able to pay expenses when abroad or larger balance for kidnappers and fraud>
2. No Zelle is a deal breaker for me as everyday banking institute.
dumb question, but how does this option compare to high yield savings accounts? different returns and different caps/limitations?
@yakuzaronin7090Is a billpay feature included? payees, schedule dates etc ??
@TomMcLaughlin-v4iTHEY HAVE FEES. YOU WLL HAVE FEES. IS ALL A LIE.
@HeydaCarrerasHello Rob, thank you so much for this video. My wife and I are new to this and been banking with Wells Fargo for the last 20 years. We are looking to make a move to Fidelity or any online bank that we will get a better return on our checking and savings. I've been doing research and I'm still a beginner so please for anybody else on here. My apologies for my ignorance because I'm still learning. My question to You Rob, aside from what you mentioned in your videos which I truly appreciate. I am your everyday regular guy with a checking and savings account. Would you recommend this to your average person that's trying to increase on the interest from their money that's direct deposited into their account from their employer. Thank you in advance
@kevinhenlon8100Wolverines! Go blue!! 😁
@Balbert99AtYahooUp to 5M can be FDIC insured? And it would be free insurance because no charge for having that account, is that correct? That's incredible. Just as long as you don't have a separate account in any of those listed institutions. How long does the reimbursement process typically take?
@artieboy244.96% yield??? How far they have fallen 😢
@jyg9504There ARE fees! .42% is the Fee!
@Klem-z2oHow concerning is the lack of fdic insurance on the spaxx money management option? Especially when you talk about parking your emergency fund there?
@bn9891So what happens when you write a check? Since Fidelity has to sell some shares of SPAXX to provide that money, does it mean you pay short term capital gains tax on the interest you’ve gained? This isn’t immediately clear to me.
@jc_alphaOne thing I'm having trouble figuring out with these Money Market funds is the expense ratios. I believe the SPAXX had an e/r of .42%? So does that mean I'm paying $4.20 for every $1000 invested?
So 100k would cost me $420 in fees per year, yet I see since this video was made, the current 7-day yield has dropped to 3.44%, however the e/r has remained the same. So they're going to take the same amount in fees regardless of the yield?
My bank just lowered my interest rate from 3% to just .10% overnight, so I'm looking for other options.
just switched to 3.44% at beginning of 2026 :(
@gd_xlthank you!!
@petergerges8551One year later, the account pays 4.01% annualized interest.
@ghostl1124I also have credit union account for cash deposits and Zelle. My Credit Union and Fidelity account are linked.
@timlinatorI've already moved most of my money to Fidelity Cash Management account.
@timlinator@rob berger
1.why not open fidelity brokerage account instead of fidelity cash management account? any advantages over cash account, any disadvantages over cash account?
2.I usually set 10-20 stock limit orders. I assume at most 1-2 will execute as I set the prices very low. does the cash management account allow me to set 10-20 stock limit orders. most competitor accounts do not have the fidelity automatic roll over to money market feature. you manually roll over uninvested cash to money market and roll back when cash is needed. because of the manual roll over nature, all competitor accounts do not allow me to set up 10-20 limit orders. doing so may potentially trigger margin call. they only allow 10-20 limit orders if I sign up for margin. the manual roll over to money market and back to cash and the subsequent margin requirement is a way for them to profit more. even if I have a lot of money in money market, they still trigger margin call. MY QUESTION TO YOU: DOES THE CASH MANAGEMENT ACCOUNT ALLOWS ME TO SETUP 10-20 LIMIT ORDERS WITHOUT TRIGGERING MARGIN CALL BY ROLLING BACK MONEY MARKET INTO CASH?
3.this brings me to this question. does cash management account even allow margin in the first place? not that I need margin. just in case margin triggers then I am covered.
This is analogous to vanguard cash plus, right?
@ericgeurkink1648We have this but trying to find a budgeting app that connects with Fidelity and actually works with importing transactions. Watched your Monarch Money video but cannot get the transactions to import.
@equam92Been using Fidelity for several years now and LOVE it! Kicked our big name bank to the curb (US Bank) and don’t regret it. Interest rates were terrible at that bank. I transferred my HSA to fidelity as well. Have access to everything via my Fidelity account. One stop shopping!
@davidrogers3072Update in December 2025?
@Gilmore_RulesWow SPAXX is at 3.42% now.
@TheCheapNomadHow does the Expense Ratio affect the 「net rate return」?
@jerrychao9742Thanks!
@angelitorivera6976Retired and living in the Philippines since 2022. Every time I used my Fidelity ATM card here ATM fees have been reimbursed to my account.
@marvinphillips1326Can Social Security direct deposit my monthly benefit into this cash management account?
@JimmyBrockHow do you like this account vs the one at Vanguard?
@Skyturtle-0Too bad Empower doesn't recognize fidelity's cash management as a bank account. No budget tracking
@masoncncEverything perfect, but no Zelle is a pain
@lycherasbry