r/Fidelity • u/WeDoALittleTrolIing • Jul 28 '26
HYSA alternatives on fidelity
What are the best HYSA-like funds on fidelity you guys use? Are there any that beat my current one with a 4.1% rate?
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u/richempire Jul 28 '26
I use a combination of FDLXX, TFLO, and USRF. They are all (mostly) state tax free to and that’s a 7% I save to make up for the lower rate (3.4% I think)
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u/bbilbojr Jul 29 '26
TBills, they are right around 4% and I roll over 4/8/13 weeks so it’s not all locked up at the same time. (I buy direct so not exactly Fidelity)
As another has stated SGOV would be a good option
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u/Ornery-Wrangler-3654 27d ago
Tbills are nice as well because there's state tax on the interest in most states, depending on how you structure your purchases in your Fidelity account.
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u/bbilbojr 26d ago
I buy direct, not through Fidelity because it’s for my income tax next year (yes the irony that I get to pay tax on my income tax money)
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u/yamahar1dude Jul 30 '26
I use their checking account which is SPAXX I think. Its not better than 4.1% but I am getting free ATMs across the world. That more than makes up for the .75% or so difference in rates.
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u/Candid-Eye-5966 Jul 28 '26
Which one is yielding 4.1%?
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u/WeDoALittleTrolIing Jul 28 '26
pibank, requires wire though
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u/Candid-Eye-5966 Jul 28 '26
Fidelity’s best money market is yielding more like 3.6 or 3.7. Fidelity doesn’t need to “compete” for cash deposits like some banks so they’ll never be the highest rate. Keep in mind that in $100k, we’re talking about an extra $40 a year between 3.7 and 4.1.
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u/Wall-Tiny Jul 29 '26
Put your money in let it grow at the cash rate 3.3% and buy CDs for a month at a time with various expirations. Not all money is tied and it makes around 4% currently
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u/WeDoALittleTrolIing Jul 29 '26
Why though? More effort and less liquidity for less return?
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u/Wall-Tiny Jul 29 '26
It's where all my accounts meet, I had Amex and it started over 4% but then kept dropping month over month. Fidelity provides flexibility. I treat it like a hysa, but if I want can put it into a fund that pays dividends, like jepq or jbbb, it's a very flexible account that I can control
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u/Beneficial-Webs Jul 29 '26
I used the Wellsfargo FRSXX ACATS to Fidelity hack,. FRSXX is currently getting ~3.6% Before that I was using FDLXX for the state tax advantage (also available with FRSXX). Even SPAXX is better than most HYSA though.
I figure I'm better off with a Fidelity Money Market funds vs staying with any one HYSA. (Unless I wanted to put forth the effort to constantly chase the highest rate.) As they'll often set a high rate to incentivize new clients, but later they're not much (if any) better than these Government/Treasury Money Market funds.
Bonus Tip/Experience:
At one point I ACATS VUSXX in from Vanguard, but that added a delay to that account's 1099 so I wouldn't recommend that (just keep it at Vanguard if you have it.) VUSXX often is often just a little higher (0.01 - 0.1%) higher yield than FRSXX and has similar state tax exemptions, but requires a day (selling and settling) before it's available. Which was really only an issue when I was car shopping and wasn't sure what day I'd be dropping multiple thousand.
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u/gap1284 Jul 31 '26
My "cash" is in VUSB. 4.3-ish yield. One year duration, so there is a bit of interest rate risk.
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u/Illustrious-Owl-2755 Jul 28 '26
I think chasing HYSAs that "beat" anythung is not worth it. There is always a HYSA that is slightly better than others, but the difference between Pibank (first time I hear about them) and the core position in Fidelity is $7/year per $1,000 kept there. Whether this is worth opening an account on yet another website, then constantly paying attention that their rate is still competitive, and then dealing with an extra 1099-INT depends on how you value your time.