Quote:
Originally Posted by chassis
It’s possible to have all cash, aka “checking account”, in a Fidelity cash management account earning mid-4% in a money market fund. A Fidelity cash management account functions almost identically as a traditional bank or credit union checking account. I am not aware of anything a Fidelity cash management account can’t do that a bank or CU account can do. So in practical terms they are functionally the same. The difference is the yield that can be earned in a 4+% MM fund vs a nearly zero % checking account.
I use Fidelity for everything, full stop.
I don’t work for Fidelity and have nothing to gain from sharing these thoughts. I have found it to be a far better way to manage day to day cash while earning some return on it.
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I don’t know about the Fidelity product but money market
funds (as opposed to money market
accounts) are generally not FDIC insured.