Many people assume the cash in a Fidelity account is FDIC insured. Fidelity’s own pages draw a line between several kinds of cash and protection. Figures below are from Fidelity’s SPAXX fund page and account pages, checked September 26, 2026. Yields change daily, so check Fidelity for current numbers.
Which Fidelity cash options are FDIC-insured?
- Money market funds (such as SPAXX and FZFXX): Fidelity states that an investment in the fund is not a bank account and is not insured or guaranteed by the FDIC. It also warns you could lose money, because the fund seeks but cannot guarantee a $1.00 share price. See our SPAXX guide.
- FDIC-Insured Deposit Sweep Program: uninvested cash is swept into interest-bearing accounts at program banks. Fidelity says FDIC insurance generally covers up to $250,000 per depositor, per insured bank, and that spreading deposits across program banks could potentially cover more. Fidelity describes a cap of $245,000 at each program bank. Fidelity lists this option for certain accounts, such as retirement accounts, so check which options your account offers.
- Securities you own (stocks, ETFs, funds): these are not FDIC-insured. They can lose value.
What is SIPC, and how is it different?
SIPC protects against the loss of cash and securities if a brokerage firm fails. It does not protect against a drop in the value of your investments. Fidelity says SIPC coverage is up to $500,000 per customer, including up to $250,000 for cash, and that it carries additional excess protection with a per-customer limit on cash awaiting investment. Fidelity’s account protection page has the current terms.
How can I check what my cash is in?
Open your account’s positions and look at the core position. If it shows a fund symbol such as SPAXX, your cash is in a money market fund and is not FDIC-insured. You can also call Fidelity to confirm.
For a comparison of the two, see SPAXX vs. the FDIC-insured sweep.
Educational information, not financial advice. Money market funds are not FDIC-insured and can lose value.
Frequently Asked Questions
Is my SPAXX money FDIC insured?
No. Fidelity states that money market funds are not FDIC-insured and that you could lose money in one, even though the fund seeks to keep its price at $1.00.
Is Fidelity SIPC insured?
Fidelity brokerage accounts are generally covered by SIPC, which protects against the failure of the brokerage firm, not against investment losses. Limits apply. See Fidelity’s account protection page.
How much FDIC coverage can I get at Fidelity?
FDIC insurance generally covers up to $250,000 per depositor, per insured bank. Fidelity says its sweep program spreads cash across program banks, up to $245,000 at each. Check Fidelity for the current bank list and your options.
Are stocks FDIC insured?
No. Stocks, ETFs and mutual funds are not FDIC-insured and can lose value.