Is Fidelity FDIC insured for my investments?

Fidelity is not a bank, but it offers FDIC insurance coverage on certain cash balances through its FDIC Deposit Sweep Program.

The FDIC insurance only applies to uninvested cash balances in eligible Fidelity accounts, such as the Fidelity Cash Management Account, and not to investment products like stocks, bonds, or mutual funds.

The FDIC insurance coverage limit is $250,000 per depositor, per insured bank.

This means Fidelity can spread your cash across multiple banks to maximize FDIC coverage.

Fidelity brokered certificates of deposit (CDs) are also eligible for FDIC insurance, but other investment products like the Fidelity Government Money Market Fund are not covered.

If your cash balances exceed the $250,000 FDIC limit, Fidelity may place the excess in non-FDIC insured accounts, which carry different risk profiles.

The FDIC insurance only protects against the failure of the member bank, not against losses in your investment portfolio.

Fidelity's FDIC Deposit Sweep Program automatically moves your uninvested cash into FDIC-insured accounts at participating banks, providing protection without any action required on your part.

The specific banks used in the FDIC Deposit Sweep Program can change over time, so it's important to review the program details regularly.

Fidelity's FDIC insurance coverage does not apply to accounts held at other financial institutions, even if they are linked to your Fidelity account.

In addition to FDIC insurance, Fidelity accounts are also protected by the Securities Investor Protection Corporation (SIPC) for up to $500,000 in securities and cash per customer.

The FDIC insurance only covers the principal amount of your deposits, not any interest earned or potential investment gains.

If you have multiple Fidelity accounts, such as an individual and a joint account, the FDIC insurance coverage can be combined up to the $250,000 limit per depositor, per insured bank.

Fidelity's FDIC insurance program is designed to provide a safe haven for your cash balances, but it's important to understand the coverage limits and exclusions.

The FDIC Deposit Sweep Program is managed by Fidelity, but the actual FDIC insurance is provided by the participating banks, not Fidelity itself.

Fidelity customers can contact the company to inquire about the specific banks used in the FDIC Deposit Sweep Program and their current coverage limits.

The FDIC insurance coverage applies to both personal and business accounts held at Fidelity, as long as they meet the eligibility requirements.

It's important to note that the FDIC insurance does not protect against losses in your investment portfolio, such as declines in the value of stocks or mutual funds.

Fidelity's FDIC insurance coverage is designed to provide a level of protection for your cash balances, complementing the SIPC coverage for your investment assets.

The FDIC Deposit Sweep Program is a feature of the Fidelity Cash Management Account, but it may also be available in other Fidelity account types.

Customers should regularly review the details of Fidelity's FDIC insurance program to ensure they understand the coverage limits and any changes that may occur over time.