Which one is best under the Roth IRA with Fidelity. SPAXX (Fidelity Government Money Market Fund) or FDIC (Insured Deposit Sweep Program)?
SPAXX vs. FDIC: What’s the Difference?
You have the option to switch between different money market funds, FDIC being one.
Here’s a list of Fidelity Money Market Funds:
- SPAXX
- FDIC
- FZFXX
- FCASH
SPAXX vs. FDIC: Which Is Better?
It really does not matter. The goal of a money market fund is for you to temporarily park your money until they get invested into stocks, options, mutual funds, or ETFs.
SPAXX: One of the most popular money market funds. Money from newly opened Fidelity accounts will be placed into SPAXX automatically. The fund has an expense ratio of 0.42% and an interest rate of 1.25%.
FDIC Insured Deposit Sweep: Your uninvested cash will be put into an actual bank where the funds are FDIC-insured, up to $1M (million).
💬 Community Discussion
Ernest T:
It’s a great choice between nothing in return vs nothing in return. Just pick one and then invest your money.
Huy N:
They both do the same thing. You lose 6.2% of your money due to inflation by letting it sit there doing nothing. Have to invest it as soon as possible.
Isaac W:
I use SPAXX. I recently looked into others, but they were either close to new investors or required a high minimum investment.
Ruksana A:
I’ve bought a couple of Money Market Mutual Funds (SPAXX). I’m not feeling any sort of benefit from them. They feel like a regular no/low interest checking account.
1 post – 1 participant
SPAXX and FDIC are money market funds from Fidelity. When you deposit money into your Fidelity brokerage account, the uninvested cash will be put into SPAXX automatically.
Someone asked:
Which one is best under the Roth IRA with Fidelity. SPAXX (Fidelity Government Money Market Fund) or FDIC (Insured Deposit Sweep Program)?
SPAXX vs. FDIC: What’s the Difference?
You have the option to switch between different money market funds, FDIC being one.
Here’s a list of Fidelity Money Market Funds:
- SPAXX
- FDIC
- FZFXX
- FCASH
SPAXX vs. FDIC: Which Is Better?
It really does not matter. The goal of a money market fund is for you to temporarily park your money until they get invested into stocks, options, mutual funds, or ETFs.
SPAXX: One of the most popular money market funds. Money from newly opened Fidelity accounts will be placed into SPAXX automatically. The fund has an expense ratio of 0.42% and an interest rate of 1.25%.
FDIC Insured Deposit Sweep: Your uninvested cash will be put into an actual bank where the funds are FDIC-insured, up to $1M (million).
💬 Community Discussion
Ernest T:
It’s a great choice between nothing in return vs nothing in return. Just pick one and then invest your money.
Huy N:
They both do the same thing. You lose 6.2% of your money due to inflation by letting it sit there doing nothing. Have to invest it as soon as possible.
Isaac W:
I use SPAXX. I recently looked into others, but they were either close to new investors or required a high minimum investment.
Ruksana A:
I’ve bought a couple of Money Market Mutual Funds (SPAXX). I’m not feeling any sort of benefit from them. They feel like a regular no/low interest checking account.
1 post – 1 participant