Fidelity daily bank sweep
Main Problem:
- User wants to prevent uninvested cash in their Roth IRA from being swept daily into a money market fund and prefers to keep it in their cash account instead.
Solutions Discussed:
- Fidelity explains that a core position is used for uninvested cash and offers various options for core positions.
- User can refer to resources provided by Fidelity to learn about the mechanics of core positions and explore available options.
Here’s the full thread
Recently opened a Roth IRA and learned that any uninvested cash is swept daily into a money market fund. If I do not want my cash swept daily and I want it just left in my cash account is there a way of doing this of opting out of the fidelity cash sweep. I am aware that I won’t earn any gains if I just leave it as cash but I’m fine with that. Thank you in advance.
We appreciate you opening a new account with us, @Alexxx12321.
When it comes to a Fidelity IRA, you will have a core position where incoming funds are deposited. The core position is where uninvested cash will be placed while waiting to be used for cash transactions, such as withdrawals or purchases of investments. Fidelity IRAs offer several different money core positions. You can learn more about the mechanics of a core position below.
What is a core position? (PDF): https://www.fidelity.com/bin-public/060_www_fidelity_com/documents/mutual-funds/what-is-a-core-position.pdf
Additionally, you can check out a list of available core positions and details about each one in the link below.
Available core positions: https://www.fidelity.com/trading/faqs-about-account#faq_about2
If there is anything we can clarify or if additional questions pop up, please don’t hesitate to ask! We’re always happy to help. 🟢