Fidelity money market accounts are FDIC insured up to $250,000 per depositor, per bank, but only if held at an FDIC-member bank

Fidelity itself is not a bank—it is a brokerage and investment firm. That means Fidelity money market accounts are not automatically FDIC insured just because Fidelity holds them. Instead, the insurance depends on where Fidelity actually places your money.

When you open a money market account through Fidelity, the cash typically goes to one or more FDIC-member banks that Fidelity partners with. Those partner banks provide the FDIC coverage. The standard limit is $250,000 per depositor, per bank. If you have $250,000 or less in a Fidelity money market account at a single partner bank, that full amount is covered. If you have more than $250,000, the amount above that threshold is not covered by FDIC insurance.

The catch: Fidelity may use multiple partner banks for a single account. If your money is split across two or more FDIC-member banks, you may have separate $250,000 coverage at each bank. Fidelity's website and account statements should show you which banks hold your funds, but you may need to contact Fidelity directly to confirm the exact breakdown if you are holding a large balance.

Key Takeaways

  • Fidelity money market accounts held at FDIC-member partner banks are covered up to $250,000 per depositor, per bank.
  • Fidelity is a brokerage, not a bank, so FDIC coverage comes from the partner banks where your money actually sits, not from Fidelity itself.
  • If Fidelity splits your deposit across multiple FDIC-member banks, you may have separate $250,000 coverage at each one.
  • Balances above $250,000 at a single bank are not FDIC insured and carry the risk of loss if that bank fails.

How to check which banks hold your Fidelity money market funds

Log into your Fidelity account online or through the mobile app and navigate to your money market account details. Look for a section labeled "Bank Information," "Account Details," or "FDIC Coverage." Fidelity typically displays the name of the partner bank or banks and the amount held at each one.

If you cannot find this information in your account, call Fidelity's customer service at the number on the back of your statement or on Fidelity.com. Have your account number ready. A representative can tell you exactly which banks hold your funds and how much is at each one. This is especially important if you are holding more than $250,000 and need to understand whether your full balance is covered.

What happens if your balance exceeds $250,000 at one bank

Any amount over $250,000 at a single FDIC-member bank is not insured. If that bank fails, you would lose the uninsured portion. This is rare—bank failures are uncommon in the United States—but it is a real risk for large balances.

If you have more than $250,000 to deposit, you have two main options. First, you can spread the money across multiple Fidelity accounts or multiple financial institutions, each keeping the balance under $250,000 at any single bank. Second, you can ask Fidelity whether it will split your deposit across multiple partner banks within a single account. Some brokerages offer this service, sometimes called "sweep" or "multi-bank" accounts, but the availability and mechanics vary. Contact Fidelity to ask whether this option is available for your situation.

FDIC coverage does not apply to investment losses

FDIC insurance protects your principal balance if the bank holding your money fails. It does not protect you from investment losses or poor performance. Money market accounts typically hold very stable, low-risk investments like short-term Treasury bills and commercial paper, so the principal is rarely at risk from market swings. However, if the interest rate environment changes or the money market fund's holdings decline in value, your account balance could fall—and FDIC insurance would not cover that loss.

This is an important distinction. FDIC insurance is about bank failure, not investment performance. If you are concerned about both safety and returns, review the specific holdings and strategy of the Fidelity money market fund you are considering, not just the FDIC coverage.

Other protections beyond FDIC insurance

Fidelity itself is a member of the Securities Investor Protection Corporation (SIPC), which is a separate insurance program. SIPC covers brokerage accounts if Fidelity itself fails, protecting up to $500,000 per customer account (with a $250,000 limit on cash). SIPC and FDIC insurance are different and can work together.

In practice, this means your Fidelity money market account has two layers of protection: FDIC coverage from the partner bank holding the cash, and SIPC coverage from Fidelity as your broker. You are not double-insured for the same dollar, but if something goes wrong at either level, you have a safety net.

Money market accounts versus money market funds

Fidelity offers both money market accounts and money market funds. Money market accounts are bank products held at FDIC-member banks and come with FDIC insurance. Money market funds are investment products that are not FDIC insured, though they are typically very stable and low-risk. If FDIC insurance is important to you, make sure you are opening a money market account, not a money market fund.

When you search Fidelity's site or speak to a representative, ask specifically whether the product is a "money market account" or a "money market fund." The names are similar, but the insurance and risk profile are different. Your account statement will also make this clear.

Frequently Asked Questions

If I have $300,000 in a Fidelity money market account, how much is insured?

If all $300,000 is held at a single FDIC-member bank, only $250,000 is insured. The remaining $50,000 is not covered. If Fidelity splits the money across two partner banks, you may have $250,000 insured at each bank, covering the full amount. Contact Fidelity to confirm how your balance is distributed.

Is Fidelity itself FDIC insured?

No. Fidelity is a brokerage firm, not a bank. FDIC insurance comes from the partner banks where Fidelity places your money, not from Fidelity itself. Fidelity is covered by SIPC, a different insurance program that protects brokerage accounts if the firm fails.

What if the bank holding my Fidelity money market account fails?

The FDIC would step in and pay you up to $250,000 of your balance at that bank. Fidelity would work with the FDIC to transfer your account or return your insured funds. Amounts above $250,000 at that bank would not be covered and could be lost.

Can I get FDIC coverage above $250,000 with Fidelity?

Yes, if Fidelity splits your deposit across multiple FDIC-member partner banks within a single account. Each bank would provide separate $250,000 coverage. Ask Fidelity whether this option is available and how to set it up for your balance.

Is a Fidelity money market account the same as a Fidelity money market fund?

No. A money market account is a bank product with FDIC insurance. A money market fund is an investment product without FDIC insurance. Both are offered by Fidelity, but they have different protections. Confirm which one you are opening.