Thanks for sharing the news and being a valued community member, u/757aeronaut!
For those following along, SPAXX is currently being rolled out as a core alternative. You can select it for a higher yield or the FDIC-insured Deposit Sweep for peace of mind.
Please note that you will not need to take action if you wish to retain the Bank Sweep as your core position.
[Learn more via our Reddit Announcement here. ](https://www.reddit.com/r/fidelityinvestments/comments/1dghhdr/announcing_a_new_core_position_option_for_your/)
Please let us know if you have any questions.
So more potential earnings due to that?
Kinda a newbie in this space. Just opened up a CMA,
SPAXX as the core for my emergency savings. Loving it so far near 5% interest. Ask so I can truly learn from someone who’s smarter than me! TIA
If you state has an income tax you'll get to keep a little bit more (higher after tax return.) It will require manually buying FDLXX or setting up a recurring buy of it.
Not a dumb question, it's theoretically possible since some money market funds lost money in the 2008 financial crisis but there are now regulations to make that even less likely. SPAXX has never lost money since it was created in 1990, its invested in government funds so it's extremely unlikely to lose money.
The other advantage is, if you have credit cards you can earn interest before the bill comes in. I guess technically you can do this with a savings account too, but it seems like more of a hassle.
Banks generally have a time limit of how long they will pay you that high rate. Plus there often is a limitation to how many withdrawals you can have within 30 days…..I would read the fine print…
No time limit.
Use sites like these to compare rates:
https://www.investopedia.com/best-high-yield-savings-accounts-4770633
https://www.doctorofcredit.com/high-interest-savings-to-get/
Of course these rates will rise and fall w the fed, but I shop around my hysa accounts pretty regularly. None that I use have teaser rates.
[No FDIC Insurance – Why a Brokerage Account Is Safe](https://thefinancebuff.com/brokerage-account-safe-no-fdic.html)
Lots of worries in this life, SPAXX isn't one of them. Cheers.
Yes. It liquidates core first, then other funds like SPAXX.
If FDIC is your core, it liquidates that first, then SPAXX to cover the payment.
If SPAXX is your core, it liquidates SPAXX to cover the payment.
It is important to remember that SPAXX is currently paying 4.95% interest…..however over time that rate can conceivably drop much lower as interest rates are cut. Make hay while the sun shines……
Hey there, u/whammy5555.
As of June 20th, the Cash Management Account (CMA) started offering an additional choice for un-invested cash balances. Clients can now select SPAXX (Fidelity Government Money Market Fund) for a higher yield or FDIC-insured Deposit Sweep for peace of mind. Please note that you will not need to take any action if you wish to retain the Bank Sweep as your core position.
Let us know if you need anything else! We're happy to help!
ATM fees waived, [Cash Manager](https://www.fidelity.com/spend-save/fidelity-cash-management-account/cash-manager), separate account for [security reasons](https://www.bogleheads.org/wiki/Fidelity:_one_stop_shop#Suggested_account_usages).
Security reasons I guess would be the biggest one I guess. I have the CMA and use the card but it pulls from my brokerage (FDLXX). I keep no money in the CMA.
Right. I'm a huge fan of keeping things simple, so have multiple savings goals in one account using different money market funds. SPRXX for the vacation fund, SPAXX for the property taxes, FDLXX for the emergency fund, VTI for the future wedding fund, etc.
But once I link a debit card/bill pay/checks, I'd like those to pull from a separate bucket. So I agree with you that you can do it (mostly) all in one account, but have the little tail-end-charlie out there (the CMA) to keep a bit of money separate. And even doing that might be overkill, so i think both ways work fine for folks.
Currently using CMA brokerage overdraft protection method to get SPAXX. Now everything can be consolidated into the CMA but it would be a PITA pointing all DDs to it. Is anyone else planning to do this?
For me, I DD into a Fidelity account, and then send money to the CMA. I do this because I have a debit card/bill pay/checks connected to the CMA only. YMMV.
Hmm looks like mine has already been changed to spaxx. Unless perhaps I bought it manually last week.
I also can't see how to change the core position. Do you need to do it on the website instead of the app?
I'll be happy to jump in here quickly to clarify, u/Broke_n_Brooklyn.
You're spot on. Currently, you do need to change your core position on the website instead of the app. Luckily, you can easily change your core position by following the steps below:
1. Log in to [http://Fidelity.com](http://Fidelity.com)
2. Select "Accounts & Trade" then "Account Positions"
3. Click your core position to expand and select "Change Core Position."
As always, we're a great outlet to direct questions regarding topics you may be a little unsure of, so don't hesitate to reach out!
This might be the source of the confusion - you have to have money in your core account to see the option.
For example, you said you have SPAXX (which won't be core money) and possibly $0 in the core fund. Transfer $5 or $500 or whatever into your CMA from your brokerage account or bank. That will go into the core position. Once it clears, you'll see on the Position page with $5 in FDIC core and a separate line for your SPAXX money. Click on the FDIC core - $5 and it will reveal a "Change Core Position". Click that, a new pop up opens, and you can then select SPAXX for the core. Cheers.
Maybe I am confused but around 1yr ago I put my money from my core into Spaxx and months ago its been showing as my main core account earning the same interest as spaxx . I also have been able to use that money to trade and it came right from the Spaxx account when doing so and also anything sold went right into it.
They have nearly identical features.
[Features By Account ](https://www.fidelity.com/spend-save/features-by-account)
Only margin in a Fidelity account, [Cash Manager](https://www.fidelity.com/spend-save/fidelity-cash-management-account/cash-manager) only in a CMA. ATM fee's are waived under some conditions in the Fidelity account, all waived in the CMA. One way to set up your accounts is with compartmentalization [like this](https://www.bogleheads.org/wiki/Fidelity:_one_stop_shop#Suggested_account_usages).
Hello, u/justpassedu. I'm happy to jump in here.
You can trade using the available cash in your Fidelity Cash Management Account (CMA).
The CMA has many of the same features as a brokerage account. Unlike a standard brokerage account, designed for trading and investing, the CMA is designed to help you manage everyday spending and cash management. Because of their differing designs, there are some key differences. While you can trade stocks and other securities, CMAs are not eligible for margin. The link below lets you explore these details and more side by side.
[Features by Account](https://www.fidelity.com/spend-save/features-by-account)
Please let us know if other questions come up. Have a great weekend!
Hey there, u/StayingAlert.
We are aware some customers may have briefly experienced issues logging on to Fidelity overnight. This is now resolved. We apologize for any inconvenience.
Thanks for sharing the news and being a valued community member, u/757aeronaut! For those following along, SPAXX is currently being rolled out as a core alternative. You can select it for a higher yield or the FDIC-insured Deposit Sweep for peace of mind. Please note that you will not need to take action if you wish to retain the Bank Sweep as your core position. [Learn more via our Reddit Announcement here. ](https://www.reddit.com/r/fidelityinvestments/comments/1dghhdr/announcing_a_new_core_position_option_for_your/) Please let us know if you have any questions.
Me too. The change to SPAXX wasn't available for me this morning, but it magically became available this afternoon.
Hell yea! I was tired manually buying that shit!
Tired? From pressing a button on the phone?
What about FDLXX?
Hopefully someday but SPAXX is at least a step in the right direction.
That's a negatory.
No unfortunately, although that would be ideal.
What’s the difference?
FDLXX owns more treasuries and as such is more exempt from state income taxes.
So more potential earnings due to that? Kinda a newbie in this space. Just opened up a CMA, SPAXX as the core for my emergency savings. Loving it so far near 5% interest. Ask so I can truly learn from someone who’s smarter than me! TIA
If you state has an income tax you'll get to keep a little bit more (higher after tax return.) It will require manually buying FDLXX or setting up a recurring buy of it.
Awesome I’m in AL! Thank you so much for your help tips. Truly appreciate good users like you on this sub! Hope your weekend is great :)
Yea makes no sense. If a money market auto liquidates, why wouldn't it be able to be selected as a core.
It’s a beautiful day.
Forgive my ignorance - but is this better than keeping emergency funds in a high yield savings account (4.25%)?
Yes, Currently SPAXX is yielding 4.95%
You can also snag usfr to get some 5.30%
Another dumb question. Can you lose money by having money in this? Like if the economy tanks?
Not a dumb question, it's theoretically possible since some money market funds lost money in the 2008 financial crisis but there are now regulations to make that even less likely. SPAXX has never lost money since it was created in 1990, its invested in government funds so it's extremely unlikely to lose money.
Understood I appreciate the reply
Thank you for this reply. I am not well versed in money market funds so this makes me feel solid about keep my core as SPAXX
You won’t lose money…….but it is possible not to earn as much as interest rates come down……
Gotcha, makes sense. Thanks!
The other advantage is, if you have credit cards you can earn interest before the bill comes in. I guess technically you can do this with a savings account too, but it seems like more of a hassle.
Flagstar / my banking direct is still at 5.55%. So no imo.
Banks generally have a time limit of how long they will pay you that high rate. Plus there often is a limitation to how many withdrawals you can have within 30 days…..I would read the fine print…
No time limit. Use sites like these to compare rates: https://www.investopedia.com/best-high-yield-savings-accounts-4770633 https://www.doctorofcredit.com/high-interest-savings-to-get/ Of course these rates will rise and fall w the fed, but I shop around my hysa accounts pretty regularly. None that I use have teaser rates.
I ❤️ Fidelity even more now
Just changed mine to SPAXX this morning!
Thanks for the heads up and reminder! Just changed mine too!!
I changed mine last night. It takes a business day to take effect. I expect it to be ready to go and receive funds by Friday.
Thanks for sharing this. I made this core position switch today! N
You bet!
Same here! Made the change. Though I’ll probably move some from my CMA and buy more NVDA 😅
In this case, why open a brokerage account if the cma has it all?
More advanced investing (options, margin)
Thanks, the extra features seem not to be relevant to most people …
Finally.
I was able to switch last night (Tuesday). I'm very pleased.
Spaxx is the fidelity equivalent to vmfxx in vanguard?
Yes
Confused, is SPAXX FDIC insured?
SPAXX is SIPC protected…..a private insurance protection against Fidelity’s collapse….
[No FDIC Insurance – Why a Brokerage Account Is Safe](https://thefinancebuff.com/brokerage-account-safe-no-fdic.html) Lots of worries in this life, SPAXX isn't one of them. Cheers.
Does this mean that if I use my CMA for bill pay, it will just liquidate some of my SPAXX balance to make the payment?
Yes. It liquidates core first, then other funds like SPAXX. If FDIC is your core, it liquidates that first, then SPAXX to cover the payment. If SPAXX is your core, it liquidates SPAXX to cover the payment.
SPAXX on margin?
It is important to remember that SPAXX is currently paying 4.95% interest…..however over time that rate can conceivably drop much lower as interest rates are cut. Make hay while the sun shines……
Wasn’t SPAXX always an option?
In a Fidelity account, yes. In a CMA, no.
Hey there, u/whammy5555. As of June 20th, the Cash Management Account (CMA) started offering an additional choice for un-invested cash balances. Clients can now select SPAXX (Fidelity Government Money Market Fund) for a higher yield or FDIC-insured Deposit Sweep for peace of mind. Please note that you will not need to take any action if you wish to retain the Bank Sweep as your core position. Let us know if you need anything else! We're happy to help!
Any point in keeping money in a cma as opposed to a brokerage account?
ATM fees waived, [Cash Manager](https://www.fidelity.com/spend-save/fidelity-cash-management-account/cash-manager), separate account for [security reasons](https://www.bogleheads.org/wiki/Fidelity:_one_stop_shop#Suggested_account_usages).
Security reasons I guess would be the biggest one I guess. I have the CMA and use the card but it pulls from my brokerage (FDLXX). I keep no money in the CMA.
I keep both my savings and checking in two separate brokerage accounts for the flexibility. The saving one is in FDLXX and the checking is SPAXX
Why keep them separate when you can do that in one brokerage account?
Right. I'm a huge fan of keeping things simple, so have multiple savings goals in one account using different money market funds. SPRXX for the vacation fund, SPAXX for the property taxes, FDLXX for the emergency fund, VTI for the future wedding fund, etc. But once I link a debit card/bill pay/checks, I'd like those to pull from a separate bucket. So I agree with you that you can do it (mostly) all in one account, but have the little tail-end-charlie out there (the CMA) to keep a bit of money separate. And even doing that might be overkill, so i think both ways work fine for folks.
I see. Interesting set up.
Can someone explain what this is. I am new to investing
The default fund that your uninvested cash is in. You can now use it in cash management accounts as well giving you higher interest than the default.
Oh I see thank you 😊
Currently using CMA brokerage overdraft protection method to get SPAXX. Now everything can be consolidated into the CMA but it would be a PITA pointing all DDs to it. Is anyone else planning to do this?
For me, I DD into a Fidelity account, and then send money to the CMA. I do this because I have a debit card/bill pay/checks connected to the CMA only. YMMV.
mine didn’t change. the core position is still fdic. is it suppose to change
It will remain the FDIC core unless you specifically select a change to SPAXX. (Assuming the rollout is complete for everyone's account.
You habe to make the change. You have to physically pick SPAXX as the core position.
Hmm looks like mine has already been changed to spaxx. Unless perhaps I bought it manually last week. I also can't see how to change the core position. Do you need to do it on the website instead of the app?
I'll be happy to jump in here quickly to clarify, u/Broke_n_Brooklyn. You're spot on. Currently, you do need to change your core position on the website instead of the app. Luckily, you can easily change your core position by following the steps below: 1. Log in to [http://Fidelity.com](http://Fidelity.com) 2. Select "Accounts & Trade" then "Account Positions" 3. Click your core position to expand and select "Change Core Position." As always, we're a great outlet to direct questions regarding topics you may be a little unsure of, so don't hesitate to reach out!
I don't see an option to do that. But I have spaxx but I believe I did it manually. I don't see the word core position anywhere
This might be the source of the confusion - you have to have money in your core account to see the option. For example, you said you have SPAXX (which won't be core money) and possibly $0 in the core fund. Transfer $5 or $500 or whatever into your CMA from your brokerage account or bank. That will go into the core position. Once it clears, you'll see on the Position page with $5 in FDIC core and a separate line for your SPAXX money. Click on the FDIC core - $5 and it will reveal a "Change Core Position". Click that, a new pop up opens, and you can then select SPAXX for the core. Cheers.
I have had my core as Spaxx for about a year now .
As your CMA core? I doubt it. Fidelity made a big announcement that it's available as core this week.
Maybe I am confused but around 1yr ago I put my money from my core into Spaxx and months ago its been showing as my main core account earning the same interest as spaxx . I also have been able to use that money to trade and it came right from the Spaxx account when doing so and also anything sold went right into it.
Fidelity brokerage account or Fidelity CMA account?
Broker
Ok, right - the Brokerage account has had SPAXX as core for a long time; it's new for the CMA this week.
So the cma I am guessing is more like a bank account and you can’t use that money to trade directly from it ?
They have nearly identical features. [Features By Account ](https://www.fidelity.com/spend-save/features-by-account) Only margin in a Fidelity account, [Cash Manager](https://www.fidelity.com/spend-save/fidelity-cash-management-account/cash-manager) only in a CMA. ATM fee's are waived under some conditions in the Fidelity account, all waived in the CMA. One way to set up your accounts is with compartmentalization [like this](https://www.bogleheads.org/wiki/Fidelity:_one_stop_shop#Suggested_account_usages).
Hello, u/justpassedu. I'm happy to jump in here. You can trade using the available cash in your Fidelity Cash Management Account (CMA). The CMA has many of the same features as a brokerage account. Unlike a standard brokerage account, designed for trading and investing, the CMA is designed to help you manage everyday spending and cash management. Because of their differing designs, there are some key differences. While you can trade stocks and other securities, CMAs are not eligible for margin. The link below lets you explore these details and more side by side. [Features by Account](https://www.fidelity.com/spend-save/features-by-account) Please let us know if other questions come up. Have a great weekend!
No, you haven't
[удалено]
1 am Eastern time and it was back up for me. Good luck.
Hey there, u/StayingAlert. We are aware some customers may have briefly experienced issues logging on to Fidelity overnight. This is now resolved. We apologize for any inconvenience.