Is it safe to keep money in Fidelity SPAXX? (2024)

Is it safe to keep money in Fidelity SPAXX?

Although the fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. An investment in the fund is not a bank account and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency.

How safe is the Fidelity government money market fund?

Stability & safety

While not insured by the FDIC, the funds are required by federal regulations to invest in short-maturity, low-risk investments, making them less prone to market fluctuations than many other types of investments.

Is SPAXX safe default?

Is SPAXX safe? SPAXX holds ultra short term, high quality debt instruments, and is thus very safe.

Does Fidelity automatically put your money in SPAXX?

SPAXX is Fidelity Investment's prime money market fund. If you have a Fidelity brokerage account, your idle cash is automatically invested in SPAXX to earn its dividend. SPAXX is the FDIC-Insured Deposit Sweep program.

Is it safe to have all my money at Fidelity?

Protecting your assets

With our Customer Protection Guarantee, we reimburse you for losses from unauthorized activity in your accounts. We also participate in asset protection programs such as FDIC and SIPC to help provide the best service possible. See our protection guarantee and account coverage.

What is the safest money market fund?

Vanguard Treasury Money Market Fund

This fund only invests in US Treasuries and repurchase agreements insured by the federal government, making it among the safest in a category of relatively safe investments. The weighted average maturity of the fund's holdings is 43 days.

Is Spaxx insured?

Although the fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. An investment in the fund is not a bank account and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency.

Should my core position be SPAXX or FDIC?

The bottom line is that SPAXX pays better interest rates, while FDIC rates are slightly more stable. In practice, both core positions are as liquid and as safe as you could need. The better core position for most people, therefore, is SPAXX.

How much interest does SPAXX pay?

What does SPAXX 7 day yield mean?

This is referenced as the 7-day yield which is defined as the average income return over the previous seven days, assuming the rate stays the same for one year. It is the Fund's total income net of expenses, divided by the total number of outstanding shares and includes any applicable waiver or reimbursem*nt.

Is SPAXX compounded monthly?

Money market funds like Fidelity Government Money Market (SPAXX) accrue interest daily, and the system deposits this interest on the last business day of the month. Previous payments can be reviewed via your "Activity & Orders" tab on Fidelity.com.

Is SPAXX a cash account?

Fidelity Government Money Market Fund (SPAXX), a taxable money market mutual fund investing in U.S. Government Agency and Treasury debt, and related repurchase agreements. Intended for investors seeking as high a level of current income as is consistent with the preservation of capital and liquidity.

What happens to my money if Fidelity goes under?

Key Takeaways. If a brokerage fails, another financial firm may agree to buy the firm's assets and accounts will be transferred to the new custodian with little interruption. The government also provides insurance, known as SIPC coverage, on up to $500,000 of securities or $250,000 of cash held at a brokerage firm.

What is the downside to Fidelity?

In most situations, you will find what you need at Fidelity. There are a few downsides. Fidelity does not offer cryptocurrency investing. The company is also missing some features found on other investment platforms, like futures trading and paper trading, where you can practice trading.

Is Fidelity at risk of a bank run?

Yes. Fidelity Bank is safe, sound and well-capitalized. We are and have been a safe haven since 1909, surviving the Great Depression, the Savings and Loan crisis, the Great Recession, and World Wars, and our balance sheet is built so that we can be here for at least another 100 years.

Is Fidelity financially stable?

Fidelity was voted the most trusted wealth management company for 2023 by the readers of Investor's Business Daily,⁹ earning top rankings for "financial soundness, quality of products and services, protecting privacy and security, and sensitivity to customer needs."

Has anyone ever lost money in a money market fund?

However, this only happens very rarely, but because money market funds are not FDIC-insured, meaning that money market funds can lose money.

How does SPAXX work?

It normally invests at least 80% of its assets in U.S. government securities and repurchase agreements for those securities. The fund invests in U.S. government securities issued by entities that are chartered or sponsored by Congress, but whose securities are neither issued nor guaranteed by the U.S. Treasury.

Is SPAXX tax exempt?

FMR normally invests the fund's assets in securities whose interest is specifically exempt from state and local income taxes under federal law; such interest is not exempt from federal income tax.

How much dividend does SPAXX pay?

What is SPAXX core balance?

The Fidelity Government Money Market Fund (SPAXX) is a money market mutual fund, often the default core position for Fidelity Brokerage accounts. The core position is where uninvested cash sits until you use it to purchase securities or make withdrawals.

What is the difference between SPAXX and fdrxx?

SPAXX is available in Non-Retirement Brokerage Accounts (other than Fidelity Cash Management Accounts) and Retirement Accounts, such as IRAs. FDRXX is available in Retirement Accounts. While these funds have some similar characteristics, there are differences in their asset composition and underlying structure.

Is SPAXX an investment?

The fund invests in U.S. government securities issued by entities that are chartered or sponsored by Congress, but whose securities are neither issued nor guaranteed by the U.S. Treasury.

Do I need a core position in Fidelity?

Opening a Fidelity account automatically establishes a core position which is needed for processing cash transactions and for holding uninvested cash. It's a position in your account that acts like a wallet.

What is the minimum balance for SPAXX?

To answer your question, no, there is not a minimum purchase or balance requirement for the Fidelity Government Cash Reserves (SPAXX).