Is FCASH FDIC Insured? Try Our FCASH vs. SPAXX Calculator
Fidelity investors can hold uninvested cash in their brokerage accounts until they are ready to trade.
FCASH is an interest-bearing cash option offered through Fidelity’s brokerage platform. It is treated differently from deposits held at an FDIC-insured bank.
| Option | FDIC-Insured? | SIPC-Protected? |
|---|---|---|
| FCASH | No | Generally yes |
| SPAXX | No | Yes, as an investment |
| FDIC Sweep | Yes, up to $250K per bank* | No |
1. What is FCASH?
FCASH is Fidelity’s taxable interest-bearing cash option.
In many Fidelity brokerage accounts, it serves as the core position where uninvested cash sits until you use it to buy investments, pay expenses, or withdraw money.
- Held as broker liability: FCASH is not a bank deposit; it’s a liability on Fidelity’s books payable on demand.
- Interest rate: Fidelity sets an interest rate on FCASH that can change over time.
- Sweep options: In a standard Fidelity brokerage account, your uninvested cash can be held in FCASH or swept into other core options.
- Usage: Any money you deposit, or sale proceeds not invested, goes into your core position until used for trades, bills, etc. FCASH simply sits in your account, earning interest and available for immediate use.
Example: How FCASH Holds Uninvested Money
Suppose you transfer $5,000 into a Fidelity brokerage account but don’t immediately invest it. If FCASH is your core position, the money can remain there and earn interest while you decide what to do next.
Is Fidelity FDIC Insured?
Find out which Fidelity accounts and cash balances qualify for FDIC insurance, how SPAXX and the FDIC sweep differ, and what the coverage limits mean for your money.
Understand Fidelity FDIC CoverageIs FCASH Protected by SIPC?
Yes, FCASH is protected by SIPC when held as cash in an eligible Fidelity brokerage account.
- Coverage limit: Up to $500,000 total, including a maximum of $250,000 for eligible cash claims.
- What it protects against: Fidelity’s brokerage failure if customer assets are missing.
- What it doesn’t protect against: Investment losses or declines in value.
- FDIC insurance: FCASH itself is not FDIC-insured.
So, SIPC covers the loss of assets if the brokerage fails and assets are missing, but it does not insure market losses or protect uninvested cash exceeding limits.
Which Fidelity Core Position Should You Choose?
SPAXX, FZFXX, FCASH or the FDIC sweep? Compare interest, safety, taxes and cash access to find the right core position for your Fidelity account.
FCASH vs. SPAXX
For uninsured brokerage cash, SPAXX is extremely safe due to U.S. government backing and strict fund rules, and historically has preserved $1 NAV.
FCASH is also very low-risk in practice since it’s simply cash, but carries the broker’s credit risk rather than a government guarantee.
But neither is FDIC-insured by default.
How to get FDIC insurance
Step 1: Log in to Fidelity
Go to Fidelity.com and open the account holding your cash.
Step 2: Check your core position
Open the account’s Positions page and look for the cash or core position. Check whether it says FDIC-Insured Deposit Sweep or SPAXX.
Step 3: Select the FDIC sweep if available
If your cash is in SPAXX and you want FDIC insurance, check whether you can change your core position to the FDIC-Insured Deposit Sweep Program. If the option is not available, contact Fidelity to ask about an eligible account or position.
Step 4: Verify the deposits
Once the sweep is selected, check your account’s assigned program banks and confirm that your cash is being deposited through the program.
FCASH FDIC Coverage FAQ
No, FCASH is not FDIC-insured by default; eligible brokerage cash may have SIPC protection.
SIPC generally covers up to $500,000 per customer, including a $250,000 limit for cash, while FDIC insurance generally covers $250,000 per depositor, per insured bank, per ownership category.
Coverage depends on the account type, ownership structure, and beneficiaries, so joint and trust accounts may qualify for different limits.
Eligible uninvested cash is generally swept to program banks on business days, according to Fidelity’s program rules.
Depending on the account and sweep program, excess cash may be invested in a money market fund such as SPAXX, which is not FDIC-insured.
Check your Fidelity account’s cash or program-bank details and use the FDIC’s EDIE calculator to estimate your coverage.
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