Fidelity Cash Management changed the game... June 15, 2024 you can have Money Market as Core

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Well Fidelity Cash Management changed the game. As of June 15, the customer can choose to have the Cash Management core be SPAXX Fund Money Market Fund (4.95% yield), instead of the FDIC insured core (2.72% yield).

Sigh… I’m being bribed. I think I’ll make more use of Fidelity Cash, but my reservations about lockouts and suspensions remain. Not my post, but clearly wildly popular and widely read. I will treat the Cash account with kid gloves.

It would be nice to distribute from my IRA once a year or once a quarter, and just pour it into SPAXX in the Cash Account, and not worry about moving it around to get a decent yield on cash. This was a brilliant move, and it really drives yet another stake into the hearts of Monster Megabanks.

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I just checked and my cash mgt account states no new core positions when I attempted to change it?

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After June 15

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I understand but I checked for press releases and seen nothing. Not a big deal since I move money back and forth to my brokerage account and obtain the better rate. I look forward to the change

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From account statement footnotes:

Please note that on or around June 15, 2024, you’ll have the option to elect Fidelity(R) Government Money Market Fund (SPAXX) as your core sweep investment vehicle. You will not need to take any action if you wish to retain the Bank Sweep as your core position. For additional information on your core position options, including the current yields on the Bank Sweep and money market funds, please visit Cash Management Account | More Than A Bank Account | Fidelity and
SPAXX - Fidelity ® Government Money Market Fund | Fidelity Investments

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The option appeared on my account yesterday, and I changed my core position to SPAXX last night.

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I was notified recently that my Vanguard brokerage sweep account can be switched over from the old default Vanguard Federal Money Market Fund to a bank-backed “Cash Deposit” account that currently pays 3.7% (subject to change.) The Cash Deposit fund is also FDIC insured to $1.25M, or $2.5M for a joint account.

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I have had my cash management account in spaxx for a few years now. We just recently put some outside money into that account and it was deposited into the sweep and then I had to transfer it into the spaxx. I merged my Vanguard into my Fidelity and the VANGUARD CASH RESERV FED MMKT ADMIRAL 7 day yield is 5.286%.

[Return to drawer position row](javascript:void(0):wink:

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I did mine today. Thanks for the info. I still have not seen any press on it but me happy