Fidelity Investments is changing its cash holding policy so that more of customers’ uninvested money ends up in a low-interest savings account. Starting next year, Fidelity will put cash in non-retirement accounts into its FCash product, which pays an interest rate less than half that of some money market accounts. This move applies to grandfathered accounts that are overseen by independent financial advisors and were previously exempt from the cash-sweep policy that Fidelity announced a year ago. Fidelity notes that advisors have other options for clients’ long-term money, such as placing them in money market funds.
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