# Fidelity new policy for new accounts & cash

**URL:** <https://community.clark.com/t/fidelity-new-policy-for-new-accounts-cash/3798>\
**Category:** Investing\
**Created:** [November 9, 2023, 9:11pm UTC](https://community.clark.com/t/fidelity-new-policy-for-new-accounts-cash/3798 "2023-11-09T21:11:55Z")\
**Posts on this page:** 4\
**Page:** 1

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**Author:** ![LastDays10000](https://avatars.discourse-cdn.com/v4/letter/l/e47c2d/32.png) [@LastDays10000](https://community.clark.com/u/LastDays10000)\
**Post date:** [November 9, 2023, 9:11pm UTC](https://community.clark.com/t/fidelity-new-policy-for-new-accounts-cash/3798/1 "2023-11-09T21:11:55Z")

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Understand come mid-Dec, Fidelity new accounts will have cash balances put in “FCASH” instead of automatic sweep into various money funds. FCASH will pay a mere 2% in a 5% short rate environment. A page out of the Schwab playbook!  
Unimpressed.

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**Author:** ![ochotona](https://sea2.discourse-cdn.com/flex016/user_avatar/community.clark.com/ochotona/32/293_2.png) [@ochotona](https://community.clark.com/u/ochotona)\
**Post date:** [November 10, 2023, 8:26pm UTC](https://community.clark.com/t/fidelity-new-policy-for-new-accounts-cash/3798/3 "2023-11-10T20:26:20Z")

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It looks like it doesn’t apply to accounts opened by individuals… and not retirement accounts.

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Fidelity Removes High-Yield Fund as Cash Sweep Option for RIAs

Effective later this year, FCASH will be the only sweep account option for all new, non-retirement brokerage accounts opened by custody clients.

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**Author:** ![LastDays10000](https://avatars.discourse-cdn.com/v4/letter/l/e47c2d/32.png) [@LastDays10000](https://community.clark.com/u/LastDays10000)\
**Post date:** [November 10, 2023, 10:19pm UTC](https://community.clark.com/t/fidelity-new-policy-for-new-accounts-cash/3798/4 "2023-11-10T22:19:37Z")

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It effects indiv accts… not retire accts

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**Author:** ![Lancie01](https://avatars.discourse-cdn.com/v4/letter/l/c57346/32.png) [@Lancie01](https://community.clark.com/u/Lancie01)\
**Post date:** [November 24, 2023, 5:21pm UTC](https://community.clark.com/t/fidelity-new-policy-for-new-accounts-cash/3798/5 "2023-11-24T17:21:12Z")

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The financial lesson to be learned is NOT to use FCASH (or any other brokerage cash account) as a savings account. Use those brokerage cash accounts only for what they were set up for, to temporarily hold cash until the owner can select an investment for it.