Is Fidelity FDIC Insured? Complete Breakdown of Coverage Limits

Someone asks:

If I deposit my money into a Fidelity account, is it insured by the FDIC like a normal bank would?

Short answer: The cash position in your accounts are FDIC insured, yes!

Fidelity brokerage accounts are generally SIPC insured. Any investment is not a guarantee and can lose value. Money inside of the Cash Management Account is FDIC-insured. The cash that is held in the Core spot may be FDIC-insured (the uninvested cash if you chose a core holding that is FDIC-insured) .

What Are the Coverage Limits?

Fidelity have accounts that are FDIC-insured up to 1 million. Call and ask to have your cash management be under FDIC. What they do under the covers is hold it separate banks < 250,000 so it’s insured under FDIC. The interest is nothing but it’s protected.


Jaren G:

Money markets are SIPC insured while brokered CDs and Cash are FDIC insured. Fidelity actually labels the type of account “FDIC” to eliminate any doubt or confusion.

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Hi! I'm Diego, 38, and I currently reside in New York. I work as a financial analyst. I primarily focus on initiatives involving research and data analysis.

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