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Independent
Does Fidelity International pay interest on uninvested cash as of October 2023?
Yes, Fidelity International pays interest on uninvested cash in one or more currencies.
I've thoroughly tested Fidelity International services with our analyst team by opening a real-money account and these are my most important findings:
- Fidelity International offers interest on your uninvested funds
- Interest helps preserve the value of your cash until you find your next investment target
- Your uninvested cash is as safe at brokers as at most banks
- Watch out for minimum balance requirements or inactivity fees
|
USD maximum cash yield
|
0.0% |
|---|---|
|
GBP maximum cash yield
|
3.4% |
|
EUR maximum cash yield
|
0.0% |
|
Inactivity fee
|
No
|
Data updated on October 10, 2023
How interest on uninvested cash can benefit you
Whenever you have some uninvested cash on your broker account, you may feel the urge to withdraw and/or reinvest it so that it doesn't just lie around, losing its value due to inflation. If this is causing you headaches, we have good news for you: many brokers now offer meaningful interest on your uninvested cash.
There can be significant differences among brokers when it comes to interest on uninvested cash: some don't pay anything, while some brokers pay higher rates than banks. If interest paid by the broker is high enough, it may be worth depositing money even if you don't intend to invest it right away.
Similarly, if you sell a stock or other asset, there's no need to withdraw the proceeds; you can simply keep it in your broker account and therefore avoid withdrawal or conversion fees. If your broker pays a good interest rate, there's less pressure to reinvest your cash, meaning you can avoid potentially ill-timed investment decisions.
In most cases, there's little reason to worry about safety when keeping cash in your broker account. In the US, for example, the default protection scheme by the Securities Investor Protection Corporation (SIPC) insures your cash holdings up to $250,000 in the case of broker bankruptcy. Often, brokers keep clients' uninvested cash in separate accounts at various banks, adding an extra layer of security in the event of broker bankruptcy.
Eager to seek out advice or improve your investment skills? Check out our overview of the most popular learning tools for long-term investors.
Things to watch when managing your cash
Earning interest on your uninvested cash is great, but there are a few things to keep in mind:
- At some brokers, you need a minimum account balance to qualify for interest; this can sometimes be quite high (upwards of $100,000).
- If you maintain a broker account solely for the purpose of earning interest on your cash, choose a broker that doesn't charge an inactivity fee or regular account fee.
Best brokers for long-term investing
Are you in the stock market for the long term? Check out our list of the top brokers for buy-and-hold investors.
Check out this short video for a behind-the-scenes peek into how our experts personally test and evaluate brokers.
Further reading
- Diversifying your investments
- Fidelity International stock conditions as of July 2023 explained
- Fidelity International bond availability as of September 2023
- Fidelity International ETF trading explained as of July 2023
- Fidelity International fractional shares trading conditions explained as of July 2023
- Fidelity International invest $100,000 as of July 2023
- Fidelity International ESG investing as of July 2023
- Fidelity International IPO accessibility
- Fidelity International Mexican stocks trading availability October 2023
- Fidelity International US stock trading details October 2023
