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) .
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.
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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