Fidelity's Banking Products
Fidelity does offer both checking and savings accounts, but not in the traditional way most banks do. Fidelity is primarily an investment company—a place where people buy and sell stocks, bonds, and mutual funds. Their checking and savings products exist mainly to hold the money you use for investing, not as standalone banking accounts you'd use for everyday bills.
If you already have a Fidelity investment account, you can add a cash management account to it. This is a hybrid product that combines checking-like features with savings-like features. If you don't have a Fidelity investment account and only want a checking or savings account, Fidelity is probably not the right fit for you—a traditional bank or online bank would serve you better.
Key Takeaways
- Fidelity's checking and savings products are designed for people who already invest with them, not as standalone accounts for everyday banking.
- Fidelity offers a cash management account that combines checking features (like a debit card) with savings features (like interest on your balance).
- You need an existing Fidelity investment account to open a cash management account; Fidelity does not offer checking or savings accounts on their own.
- Fidelity's cash management account typically has no monthly fees and no minimum balance requirement, though terms can change.
How Fidelity's Cash Management Account Works
Fidelity's cash management account is the closest thing they offer to a traditional checking account. It comes with a debit card you can use to withdraw money or pay for things, and you can set up direct deposit so your paycheck goes straight in. You can also write checks from this account, though Fidelity will mail you a checkbook rather than providing one when ready.
The account also earns interest on the money you keep in it—this is the savings part. The interest rate changes based on what the Federal Reserve does with interest rates overall, so it is not fixed. You can move money between your cash management account and your investment accounts within Fidelity when ready, which is useful if you want to buy an investment and then move cash back out.
One important difference from a traditional bank: your cash management account is not held at a bank. Fidelity sweeps the money into partner banks that are FDIC-insured, which means your deposits are protected up to $250,000 per account type. However, the account itself is managed by Fidelity, not a bank.
What You Need to Open One
You must already have a Fidelity brokerage account—an investment account where you can buy stocks or mutual funds. If you do not have one, you would need to open that first. The process is straightforward: you provide your name, address, Social Security number, and employment information, then fund the account with at least some money.
Once your brokerage account is open, you can add a cash management account to it through Fidelity's website or app. There is no separate process process; it is an add-on feature. You will choose a debit card design and set up a PIN, and the card typically arrives within 7 to 10 business days.
Fees and Minimum Balance
Fidelity's cash management account has no monthly maintenance fee and no minimum balance requirement. You do not pay to use the debit card, and there is no fee for direct deposit or transfers between your accounts at Fidelity.
However, you may pay fees for things outside Fidelity's control—for example, if you use an ATM that is not part of Fidelity's network, the ATM operator may charge you a fee. Fidelity reimburses most out-of-network ATM fees, but this is worth confirming before you rely on it. Fees can change, so check Fidelity's current fee schedule on their website.
When Fidelity Makes Sense for You
Fidelity's checking and savings products work best if you already invest or plan to invest with them. If you want to keep your paycheck in one place, buy stocks in another, and move money between them without leaving Fidelity's system, this account does that smoothly. The interest rate on your cash balance is competitive with online savings accounts, so you are not losing money by keeping cash there while you decide what to invest in.
Fidelity also makes sense if you want a straightforward setup: one login, one app, one debit card, and all your money in one place. You do not have to manage accounts at two different companies or move money between them.
When to Choose a Different Bank Instead
If you do not plan to invest and only want a checking or savings account, a traditional bank or online bank is simpler. You can open an account in minutes without having to set up an investment account you will not use. Banks like Ally, Charles Schwab Bank, or your local credit union offer checking and savings accounts as their main product, not as an add-on.
If you need a physical branch location where you can walk in and talk to someone, Fidelity has limited branch locations compared to large national banks. Most of Fidelity's support happens online or by phone. If you prefer in-person banking, a traditional bank is a better choice.
How Fidelity Compares to Other Investment Companies
Charles Schwab, another major investment company, also offers a checking account tied to their brokerage account. Like Fidelity, you need a Schwab investment account to open one. Schwab's checking account has similar features: a debit card, check-writing, direct deposit, and no monthly fee. The main differences are in the interest rate paid on cash balances and the specific features of their investment platform, which vary based on what you want to invest in.
If you use a different investment company like Vanguard or E*TRADE, they may not offer checking accounts at all. In those cases, you would need a separate bank account for your everyday money and your investment account at the investment company.
Frequently Asked Questions
Can I use Fidelity's cash management account if I don't invest?
Technically no—you need an active brokerage account to have a cash management account. However, you do not have to actively trade or invest money. You can open a brokerage account, fund it with a small amount, and then use the cash management account for your everyday banking without ever buying an investment.
Is my money safe in Fidelity's cash management account?
Yes. Fidelity sweeps your cash into FDIC-insured partner banks, so your deposits are protected up to $250,000 per account type. This is the same protection you get at a traditional bank. Fidelity itself is also a well-established, regulated financial company.
Can I get a physical debit card, or is it only digital?
You get a physical debit card that arrives in the mail. Fidelity also offers a digital card number you can use when ready for online purchases while you wait for the physical card to arrive.
What interest rate does Fidelity pay on cash in the account?
The interest rate changes based on Federal Reserve decisions and market conditions. Check Fidelity's website for the current rate, as it is not fixed. The rate is typically competitive with online savings accounts, but it will be lower than rates on high-yield savings accounts at some online banks.
Can I write checks from my Fidelity cash management account?
Yes. Fidelity will mail you a checkbook once your cash management account is open. Checks typically take 5 to 7 business days to arrive. You can also use your debit card or set up bill pay through Fidelity's website if you need to pay someone before your checks arrive.