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  • msf August 2019
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Fidelity Is Giving Customers Higher Rates On Cash. Here’s Why: (SPAXX)

TedTed
in Fund Discussions
FYI: Yields on cash and money-market funds have fallen lately as the Federal Reserve cut interest rates. But Fidelity appears to be bucking the trend, at least temporarily.

Fidelity caused a stir on Wednesday with an announcement that the firm “has challenged conventional industry practices” by automatically defaulting brokerage customers into a government money-market fund yielding 1.9%.

Fidelity didn’t actually reveal anything new with the announcement (triggering some angry responses from advisors on Twitter). The firm has defaulted nonretirement accounts into Fidelity Government Money-Market fund (ticker: SPAXX) since the third quarter of 2015. New retail retirement accounts made the switch in May, 2019. Advisors who custody with Fidelity are still defaulted into F-Cash, rather than the money-market fund.
Regards,
Ted
https://www.barrons.com/articles/fidelity-sweep-accounts-cash-rates-federal-reserve-schwab-merrill-lynch-vanguard-etrade-51565291732?refsec=funds

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