Fidelity Cash Management Account Can Now Automatically Invest in the SPAXX Money Market Fund

Starting June 15, 2024, balances in Fidelity’s free Cash Management Account can now be set to the government money market fund SPAXX. Previously, this feature was available only for Fidelity brokerage accounts, but not for the Cash Management Account (whose debit card can reimburse ATM fees worldwide).

After switching to SPAXX, your balance will automatically be invested in this fund and earn about 5% in dividends, which is much higher than the default bank interest rate. We strongly recommend changing the default option to SPAXX. SPAXX invests in US government bonds, so the risk is quite low.

If you want to change your core position, log in to Fidelity.com, select “Accounts & Trade,” then go to “Account Positions,” and select your account. There you will see the “Change Core Position” button.