Fidelity has a BU that is a "bank", dk if its still called National Financial, would think those products would be technically in that BU and FDIC insured, but not positive.
Used to work for Fid, they are good, but a slow dying dinosaur, because they are so large, been around forever, and pretty safe is the reason they will not fall quickly. If AJ still runs the show for another 20yrs they will become irrelevant.
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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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Originally Posted by RickFLM4
I don’t know about the Fidelity product but money market funds (as opposed to money market accounts) are generally not FDIC insured.
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