How to Open a High Yield Savings Account at Fidelity

What Fidelity's high yield savings account actually is

Fidelity offers a high yield savings account called the Fidelity Government Money Market Fund (ticker: SPAXX), which sits inside a Fidelity brokerage or retirement account rather than standing alone as a traditional savings account. This matters because you cannot walk into a Fidelity branch and open "just" a savings account the way you would at a bank. You open a Fidelity account first, then move money into the money market fund within it.

The account holds cash and pays interest daily, with the rate changing as the Federal Reserve adjusts short-term rates. Fidelity also offers a Cash Management Account that functions more like a traditional high yield savings account—you can deposit money directly and it sweeps into FDIC-insured partner banks automatically. Both routes exist; which one you use depends on whether you already have a Fidelity brokerage account and how you plan to use the money.

Money in either account is not locked in. You can withdraw it the same day you request it, though the actual transfer to your bank account takes one to three business days depending on your bank.

Key Takeaways

Fidelity's high yield savings sits inside a brokerage account (the Government Money Market Fund) or a standalone Cash Management Account, not as a separate product.
You need a Social Security number, a valid ID, and a bank account to link for deposits and withdrawals.
The entire process—from starting the account to depositing money—takes about 10 minutes online, with full access usually available the same day.
Money in the account earns interest daily and can be withdrawn anytime without penalty, though transfers to your bank take one to three business days.
If you already have a Fidelity brokerage account, you can move money into the Government Money Market Fund without opening anything new.

Opening a Fidelity brokerage account to access the money market fund

Go to fidelity.com and click "Open an Account." Select "Brokerage Account" from the options. Fidelity will ask for your name, date of birth, Social Security number, address, phone number, and email. This takes about five minutes. You will also choose a username and password.

Next, Fidelity asks about your employment and income—this is standard for all brokerages and does not affect whether you can open the account. Answer honestly. Then link a bank account for deposits and withdrawals. Fidelity will make two small test deposits (usually under $1 each) to verify the account is yours; you confirm the amounts in your bank statement, and the link is complete.

Once the account is open and your bank is linked, you can when ready transfer money into it. The money will land in your brokerage cash balance, which you can then move into the Government Money Market Fund (SPAXX) with a single click. The fund shows up in the "Invest" or "Trade" section of your account.

Using Fidelity's Cash Management Account instead

If you do not want to open a full brokerage account, Fidelity's Cash Management Account is simpler. It functions like a high yield savings account at a traditional bank: you deposit money, it earns interest, and you withdraw it. Behind the scenes, Fidelity sweeps your cash into FDIC-insured accounts at partner banks, but you see only one account number.

To open it, go to fidelity.com and select "Cash Management Account" during account creation. The information you provide is identical—name, Social Security number, address, phone, email, employment details. Link your bank account the same way. The entire process takes about 10 minutes.

The advantage of the Cash Management Account is simplicity: you do not need to understand money market funds or move money between accounts yourself. The disadvantage is that if you later want to invest in stocks or mutual funds, you will need to open a separate brokerage account. Many people open the Cash Management Account first, then add a brokerage account later if they decide to invest.

What you need before you start

Have these items ready: a valid government-issued photo ID (driver's license, passport, or state ID), your Social Security number, your current address, and a bank account you control. Fidelity will verify your identity using information from credit bureaus, so the process is faster if your information matches what is already on file with them.

You do not need an existing Fidelity account, a minimum deposit amount, or any prior investing experience. Fidelity has no monthly fees for brokerage or Cash Management accounts, and no minimum balance requirement.

Moving money in and earning interest

Once your account is open and your bank is linked, you can transfer money in when ready. From your Fidelity account, select "Transfer Funds" and choose your linked bank account. Fidelity will ask how much you want to transfer and when. Most transfers arrive within one business day, though some banks take longer.

If you opened a brokerage account, your money lands in the cash balance. To move it into the Government Money Market Fund (SPAXX), go to the "Invest" section, search for SPAXX, and click "Buy." You can buy as many shares as you want—there is no limit. The fund begins earning interest the same day you buy it.

If you opened a Cash Management Account, your money automatically earns interest as soon as it arrives. You do not need to do anything else. Fidelity shows your current interest rate on your account dashboard, and it updates whenever the Federal Reserve changes rates.

Withdrawing money and moving it back to your bank

To withdraw money, log into your Fidelity account and select "Transfer Funds." Choose your linked bank account and enter the amount. If you are withdrawing from the Government Money Market Fund in a brokerage account, you will need to sell the shares first (this takes seconds), then transfer the cash to your bank.

Fidelity processes withdrawal requests the same business day you submit them, but the actual money takes one to three business days to appear in your bank account. This depends on your bank's processing speed, not Fidelity's. If you need money urgently, check your bank's transfer policies before opening the account.

There is no penalty for withdrawing money, no matter how much or how often. The interest rate you earn is based on how long your money sits in the account, but Fidelity does not charge you for taking it out early.

Interest rates and how they change

Fidelity's Government Money Market Fund and Cash Management Account both track short-term interest rates set by the Federal Reserve. When the Fed raises rates, Fidelity's rate rises within days. When the Fed cuts rates, Fidelity's rate falls. You can see the current rate on Fidelity's website or in your account dashboard.

The exact rate varies slightly between the Government Money Market Fund and the Cash Management Account because they hold different underlying investments, but both are competitive with other high yield savings accounts. Fidelity does not charge a fee to hold either account, so the full rate you see is what you earn.

Interest is calculated daily and paid monthly. This means your balance grows slightly each day, and at the end of the month, Fidelity deposits the accumulated interest into your account. You can reinvest it or withdraw it.

Frequently Asked Questions

Can I open a Fidelity account if I do not have a Social Security number?

No. Fidelity requires a Social Security number for all account types. If you are a non-citizen with an Individual Taxpayer Identification Number (ITIN), contact Fidelity directly to ask about alternatives, though most brokerages have the same requirement.

How long does it take to start earning interest?

Interest begins accruing the day your money arrives in the account. If you transfer money on a Monday and it lands Tuesday morning, you start earning interest Tuesday. The interest is paid to you at the end of the month.

Is my money safe at Fidelity?

Money in the Government Money Market Fund is held in short-term U.S. Treasury securities and cash, which carry virtually no credit risk. Money in the Cash Management Account is swept into FDIC-insured accounts at partner banks, so each account is insured up to $250,000. If you have more than $250,000, it spreads across multiple banks automatically.

What happens if Fidelity goes out of business?

Fidelity is a large, established brokerage that has operated since 1946. If it were to fail, your cash and investments would be protected by the Securities Investor Protection Corporation (SIPC) up to $500,000 per account type. Your money would not disappear.

Can I use a Fidelity high yield savings account for my business?

Fidelity offers separate business brokerage and Cash Management accounts with different features and tax treatment. You would need to open a business account rather than a personal one. Contact Fidelity's business team or visit their business account section to start.

This guide is for general information only and is not medical, financial, legal, or other professional advice. For decisions specific to your situation, consult a qualified professional. See our Editorial Policy.