Fidelity is not a bank and brokerage accounts are not FDIC insured, but uninvested cash balances are eligible for FDIC insurance. Keep in mind that investing involves risk. The value of your investment will fluctuate over time and you can earn or lose money. Just remember that although Fidelity offers a lot of similar features, they're not technically a bank.
They don't have the same options and money markets are not FDIC insured. I still have a separate current account in a real bank just in case. They should be able to authorize it up to your daily spending limits and there should be no charge (you may want to check with Fidelity about the charges). Fidelity Investments, one of the world's largest financial firms for assets under management (AUM), offers the Fidelity Cash Management Account among its product portfolio.
Please note that you will no longer be subject to or under the protection of the privacy and security policies of the Fidelity Bank website. Because Fidelity specializes in investment accounts, it wanted to offer an option to clients who need to keep a portion of their money safe and easily accessible. I use Fidelity for 100% of my banking operations (checks, savings, brokerage, IRA, ROTH IRA, 401k, credit card, debit card). Compare your banking needs to those offered by Fidelity Cash Management Accounts to determine if this account is right for you.
The transfer program allows you to make cash management deposits to multiple bank accounts, allowing Fidelity to protect deposits in your cash management account far beyond a standard bank account. You can pay bills with your checkbook or set up a Fidelity BillPay account to make mobile bill payments. As with most cash management accounts, Fidelity “sweeps its customers' deposits with these banks and deposits receive FDIC insurance by extension. The Fidelity Cash Management account is technically a brokerage account, which means that it is not a bank account and does not have the same regulations that a bank would have.
Fidelity will use all information you provide solely for the purpose of sending the email on your behalf. In addition to online banks, community banks and credit unions, many brokerage firms have begun to offer their customers a range of financial services similar to those found in conventional banks and Fidelity is one of them. Although it doesn't have much advertising on the Fidelity website, the cash management account is an interest-bearing account. Fidelity clients can open brokerage accounts to invest in mutual funds, stocks, bonds and more.
Fidelity Cash Management accounts are accessible online through the Fidelity website or its mobile application. I do all my banking transactions faithfully, but I have a savings account or other checking account at another bank where I have most of my funds.