SPAXX - Fidelity ® Government Money Market Fund (2024)

FAQs

What is SPAXX Fidelity government money market? ›

Fidelity Government Money Market Fund (SPAXX)

The fund is typically 99.5% or more invested in cash or cash equivalents in the form of short-term U.S. government securities or repurchase agreements that are fully collateralized by cash or such securities.

You could lose money by investing in the fund. 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 insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency.

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.

The withdrawal will automatically come from the cash core in your account. We can walk you through it step by step in an online chat: http://go.fidelity.com/kaq5 or take care of the transfer for you over the phone at 800-544-6666. I hope this helps. I'm glad you were able to get it taken care of, Greg.

If money does end up in the core position, since this is an investment account you want to optimize growth. Interest rates are currently extremely low, but if they rise in the future, SPAXX will provide higher returns, so choose it. TL;DR: It doesn't matter, but pick SPAXX.

SPAXX Dividend Yield: 1.95% for March 9, 2023.

Fidelity U. S. Treasury money market fund is the safest of the lot while Fidelity U. S. Government Reserves and Fidelity Government Money Market Fund are a close second. Money market funds investing in commercial paper or debt issued by municipalities tend to carry a bit more risk.

Schedule monthly income from dividend stocks with a monthly payment frequency. Diversify across sectors or allocate more towards a bullish sector thesis. Quickest stock price recoveries post dividend payment.

What is the return on SPAXX? ›

Because money market funds are investments and not savings accounts, there's no guarantee on earnings and there's even the possibility you might lose money.

Fidelity Balanced Fund (FBALX) While no mutual fund is risk-free, one of the safer Fidelity funds is this balanced fund, which carries average risk vs. the above-average risk seen with the typical stock fund. About 60% of its holdings are in stocks, with the rest in bonds and other debt securities.

However, the money is liquid, unlike money that's held in a CD. But you can still lose money in some cases, like if your money market account has high fees. Funds in a money market account can also lose purchasing power due to inflation. One of the best money market accounts can help you avoid these risks.

Yes, all the options for the Fidelity Core Position earn interest.

You can withdraw money from your Fidelity brokerage account and: Transfer it to another account you own using the Fidelity Electronic Funds Transfer account service, or. Have the money sent to your mailing address via check.

Trades must be fully settled in a cash account before you can withdraw the proceeds to your bank.

Different types of money market funds include: Treasury funds, which are 99.5% invested in cash and US Treasury securities. Government money funds that invest more than 99.5% of their assets in government securities or cash, or in repurchase agreements collateralized by either.

Yes, SPAXX and FZFXX have slightly higher interest than the FCASH account, so that's what I would choose.

FDRXX: This is extraordinarily similar to SPAXX. In fact, the composition, description, overview, yield, and historical yield are virtually identical.

Is Fidelity government money market tax exempt? ›

Fund Overview

Seeks to provide as high a level of current income, exempt from federal income taxes, as is consistent with liquidity and stability of principal.

Government money market funds are defined as money market funds that invest 99.5% or more of their total assets in very liquid investments, namely, cash, government securities, and/or repurchase agreements that are collateralized fully with government securities.

Over the most recent year-to-date, one-, three-, five- and 10-year periods, FLCEX has outperformed the S&P 500, despite a sustained turnover ratio above 80%.

The Fund seeks as high a level of current income as is consistent with preservation of capital and liquidity. It will Normally invest at least 99.5% of total assets in cash, U.S. Government securities and/or repurchase agreements that are collateralized fully (i.e., collateralized by cash or government securities).

Income generated by a money market fund can be either taxable or tax-exempt, depending on the types of securities in which the fund invests. Regulations from the U.S. Securities and Exchange Commission (SEC) define 3 categories of money market funds based on investments of the fund—government, prime, and municipal.

Electronic funds transfers (EFT) from Fidelity accounts are generally received within 2 business days. EFTs sent to Fidelity accounts are typically available within 4 business days, but the funds are usually available for trading before settlement.

Key return on investment statistics

Average annual return on stocks: 13.8 percent. Average annual return on international stocks: 5.8 percent. Average annual return on bonds: 1.6 percent.

The Securities Investor Protection Corporation (SIPC) is a nonprofit organization that protects stocks, bonds, and other securities in case a brokerage firm goes bankrupt and assets are missing. The SIPC will cover up to $500,000 in securities, including a $250,000 limit for cash held in a brokerage account.

How long should you keep money in a money market fund? ›

Six to 12 months of living expenses are typically recommended for the amount of money that should be kept in cash in these types of accounts for unforeseen emergencies and life events. Beyond that, the money is essentially sitting and losing its value.

Money market investing can be very advantageous, especially if you need a short-term, relatively safe place to park cash. Some disadvantages are low returns, a loss of purchasing power, and that some money market investments are not FDIC insured.

Due to the nature of the short-term investments, these are considered to be highly liquid, which means they can be exchanged for cash easily, giving investors access to their money when they need it. Money market funds in general offer better returns than those available from a standard bank savings account.

Your 401k rate of return may be negative due to market downturn, poor investment choices, high fees, or economic recession.

Fidelity and Vanguard both do a good job keeping costs fairly low, but Fidelity has a slight edge overall. Both brokers charge zero commission for stock and ETF trades, but Fidelity charges $0.65 per contract on options trades, while Vanguard charges $1 per contract for customers with less than $1 million in assets.

If you want to earn a higher APY and you can meet a higher account minimum, a money market account is a good choice. It's also a smart option for people who need easy access to their money. If you know that you won't need the money for a while, and you want to earn an even higher APY, a CD works well.

Both money market accounts and checking accounts represent a safe place to keep your money. They are insured by the Federal Deposit Insurance Corporation, which means that if the bank declares bankruptcy, you won't lose your money. With either account, you can write checks to pay clients or bills.

Money market accounts and savings accounts are equally safe places for consumers to keep their savings. However, it's important to open accounts at banks that are covered by FDIC insurance. You can check if your bank is FDIC-insured here.

SPAXX: This is a money market fund. Basically a mutual fund (a fund that pools everyone's money) that invests in cash and cash-like stuff… like CDs.

How much interest does a fidelity government money market pay? ›

It's the amount of cash available to invest

It's the same thing as cash, it'll show up as your available for use money to invest.

Because money market funds are investments and not savings accounts, there's no guarantee on earnings and there's even the possibility you might lose money. When interest rates are low, money market rates are also low, earning investors very little.

What is Fidelity's safest fund? The safest Fidelity funds are those in the lowest-risk categories. While it's not possible to determine which specific fund has the absolute lowest risk, the categories with the lowest Morningstar risk ratings are cash reserve and money market funds.

The bottom line

Yes, SPAXX and FZFXX have slightly higher interest than the FCASH account, so that's what I would choose.