SPAXX vs. FDIC: Risk Comparison & Analysis

Someone asks:

Which one is best under the Roth IRA with Fidelity. SPAXX (Fidelity Government Money Market Fund) or FDIC (Insured Deposit Sweep Program)?

SPAXX vs. FDIC: What’s the Difference?

SPAXX and FDIC are money market funds from Fidelity. When you deposit money into your Fidelity brokerage account, the uninvested cash will be put into SPAXX automatically. You have the option to switch between different money market funds, FDIC being one.

Here’s a list of Fidelity Money Market Funds:

  • FDIC

SPAXX vs. FDIC: Which Is Better?

It really does not matter. The goal of a money market fund is for you to temporarily park your money until they get invested into stocks, options, mutual funds, or ETFs.

SPAXX: One of the most popular money market funds. Money from newly opened Fidelity accounts will be placed into SPAXX automatically. The fund has an expense ratio of 0.42% and an interest rate of 1.25%.

FDIC Insured Deposit Sweep: Your uninvested cash will be put into an actual bank where the funds are FDIC-insured, up to $1M (million).

💬 Community Discussion

Ernest T:

It’s a great choice between nothing in return vs nothing in return. Just pick one and then invest your money.

Huy N:

They both do the same thing. You lose 6.2% of your money due to inflation by letting it sit there doing nothing. Have to invest it as soon as possible.

Isaac W:

I use SPAXX. I recently looked into others, but they were either close to new investors or required a high minimum investment.

Ruksana A:

I’ve bought a couple of Money Market Mutual Funds (SPAXX). I’m not feeling any sort of benefit from them. They feel like a regular no/low interest checking account.

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Diego, a seasoned financial analyst in New York, brings a decade of expertise to guiding financial decisions. As a blogger for, he simplifies finance, offering insights on Fidelity Investments. Beyond numbers, he explores NYC's culture and enjoys capturing moments through his photography.

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