Fidelity Money Market Fund Premium Class (FZDXX): 7-Day Yield 3.68% and Review (October 2026)
Written & reviewed by Hans Goldstein, EA, independent licensed insurance producer · CA license 4273294 · NPN 20602398Admitted to practice before the IRS
Yield and expenses re-checked against fundresearch.fidelity.com on October 3, 2026 (holdings as of 08/31/2026) · Reviewed
Short answer
FZDXX's 7-day yield was 3.68% as of October 2, 2026, per Fidelity, with a 0.30% net expense ratio (0.36% gross) and a $100,000 minimum. It is Fidelity's prime money market fund for larger balances and paid 0.19 points more than SPAXX (3.49%) that day, because it holds commercial paper and bank CDs and can charge a fee when you sell. Vanguard's Treasury fund, VUSXX, still paid more (3.82%).
Money market fund vs MYGA, after tax
What $100,000 earns in 5 years: money market fund vs MYGA, after tax
Rates used: Money market fund 3.76%, the highest 7-day yield we tracked (VUSXX, fund sites, September 23, 2026); yields change daily; change it to the rate you are offered. MYGA 5.95%, the best A-rated rate we track as of October 13, 2026: Delaware Life Pinnacle Plus 5-year (AM Best A-, negative outlook, 7/31/2026), $100,000 and up, effective October 6, 2026 (Delaware Life rate sheet).
| Money market fund, interest taxed every year | $115,550 |
|---|---|
| MYGA, tax-deferred, before tax | $133,507 |
| MYGA after paying tax on all the interest at withdrawal | $126,136 |
| Tax deferral alone adds about | $674 |
| MYGA ahead of the money market fund, after tax | $10,586 |
Assumes 22% federal and 0% state income tax, no withdrawals, rates held for the whole term. MYGA interest is taxed as ordinary income when you withdraw it, not as capital gains. Gains taken before age 59 1/2 can owe a 10% IRS penalty, and cashing out early can cost a surrender charge. In an IRA both grow tax-deferred, so the edge there is the rate alone. A MYGA is backed by the issuing insurer's claims-paying ability and your state's guaranty association up to its limits, not the FDIC. General education, not tax, legal or financial advice.
FZDXX at a glance
| FZDXX fact | Value | As of |
|---|---|---|
| 7-day yield | 3.68% | 10/02/2026 |
| NAV | $1.00 | 10/02/2026 |
| Expense ratio, net / gross | 0.30% / 0.36% | 04/30/2026 / 06/29/2026 |
| Minimum to invest | $100,000 | current |
| Portfolio net assets | $133.2 billion | 08/31/2026 |
| Weighted average maturity / life | 15 days / 20 days | 09/22/2026 |
| Average annual return, 1 / 3 / 5 / 10 yr | 3.62% / 4.40% / 3.68% / 2.39% | 09/30/2026 |
What FZDXX holds
| Instrument | Weight |
|---|---|
| U.S. Treasury debt | 33.67% |
| U.S. Treasury repurchase agreements | 22.77% |
| U.S. government agency repurchase agreements | 18.47% |
| Other repurchase agreements | 9.11% |
| Financial company commercial paper | 9.35% |
| Certificates of deposit | 5.04% |
| Asset-backed commercial paper | 2.25% |
| Non-negotiable time deposits | 2.10% |
| Non-financial company commercial paper | 0.21% |
| Net other assets | -2.97% |
FZDXX vs SPAXX and Treasury funds (October 2, 2026)
| Fund | Type | 7-day yield | Expense | Minimum |
|---|---|---|---|---|
| FZDXX | Prime | 3.68% | 0.30% net | $100,000 |
| SPAXX | Government | 3.49% | 0.42% | $0 |
| VUSXX (Vanguard) | Treasury | 3.82% | 0.07% | $3,000 |
| SNSXX (Schwab) | Treasury | 3.54% | 0.34% | None |
- The prime premium is small. You get 0.19% over SPAXX, and for that you take on credit exposure to banks and corporate issuers plus a possible redemption fee.
- A low-cost Treasury fund paid more. VUSXX's 3.82% beat FZDXX on October 2, 2026, with Treasury income that may be partly state-exempt.
- The maturity is short. With a 15-day weighted average maturity, the yield resets quickly when the Fed moves.
Rates expire like milk.
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FZDXX vs. a 5-year MYGA: $250,000 math
FZDXX is a cash tool, with daily access and a yield that resets every day. For money that can sit five years, a multi-year guaranteed annuity (MYGA) fixes the rate for the term. A-rated-or-better insurers paid roughly 5.50% to 6.05% on 5-year MYGAs on October 14, 2026.
| $250,000 for 5 years | FZDXX at 3.68% (held constant) | 5-yr MYGA at 5.50% |
|---|---|---|
| Value after 5 years, after 24% federal tax | ~$287,000 | ~$308,300 (tax paid at the end) |
| Rate | Variable, resets daily | Fixed for the term |
| Access | Daily | Free-withdrawal amount yearly; surrender charge above it; IRS 10% penalty before 59½ |
| Protection | Not FDIC insured; seeks $1.00 NAV | Insurer claims-paying ability + state guaranty association (limits vary by state) |
About $21,300 more after federal tax on the MYGA, and the FZDXX column assumes today's yield never falls, which flatters it. Fixed annuity benchmark: carriers rated A or better topped out around 5.50% to 6.05% on 5-year compound-interest MYGAs, per public carrier rate sheets, October 14, 2026. Rates vary by state, premium and carrier.
Current MYGA rates · Annuity vs CD · HYSA vs money market fund
FZDXX vs SPAXX vs FDRXX: 7-day yield today
FDRXX (Fidelity Government Cash Reserves) is the middle option: a government fund with no minimum that paid 3.56% on October 2, 2026, versus 3.49% for SPAXX and 3.68% for FZDXX. If you are choosing between SPAXX and FDRXX for a core position, the comparison is in SPAXX vs FDRXX.
| Fidelity fund | Type | 7-day yield (10/02/2026) | Expense | Minimum |
|---|---|---|---|---|
| FZDXX Money Market Premium Class | Prime | 3.68% | 0.30% net (0.36% gross) | $100,000 |
| SPRXX Money Market Fund | Prime | 3.56% | 0.42% gross | $0 |
| FDRXX Government Cash Reserves | Government | 3.56% | 0.37% gross | $0 |
| SPAXX Government Money Market | Government | 3.49% | 0.42% | $0 |
FZDXX and SPRXX hold the same kind of prime portfolio; FZDXX's lower expense ratio is why it paid 0.12 points more for $100,000-plus balances. A $100,000 balance earning that 0.12-point edge is about $120 a year.
How often does FZDXX pay dividends?
Like Fidelity's other money market funds, FZDXX accrues dividends daily and pays them monthly; you can reinvest them or take them as cash. Example: $250,000 at the 3.68% yield of October 2, 2026 earns about $767 a month before tax if the yield held for the month.
Is Fidelity FZDXX a good investment?
For a Fidelity investor with $100,000 or more in cash who does not mind prime credit exposure, FZDXX was the highest-yielding Fidelity money fund we checked on October 2, 2026. Three things count against it: it is a prime fund (bank and corporate paper, not just government debt), it may impose a liquidity fee on sales in stressed markets, and almost none of its income is exempt from state tax. In a high-tax state, a Treasury fund such as FDLXX or VUSXX can net more after tax. The difference between the two fund types is in government vs prime money market funds.
From my desk: how I compare this to locked rates
A $100,000 minimum usually means the money is not spending money. When I see a six-figure balance in FZDXX that has been there more than a year, I run the same comparison every time: what does that balance earn floating and taxed yearly, versus locked and tax-deferred.
Example: $250,000 held five years at FZDXX’s 3.68% (assumed constant) ends near $287,000 after 24% federal tax. A 5-year MYGA at 5.50% (low end of the A-rated range on October 14, 2026) ends near $308,300, with tax deferred until withdrawal and a surrender charge if you leave early. The MYGA rate is backed by the claims-paying ability of the issuing insurer, not the FDIC. I do not sell or advise on money market funds; this is the insurance side of the comparison.
FZDXX: FAQ
What is the FZDXX 7-day yield?
3.68% as of October 2, 2026, per Fidelity's fund research page.
What is the FZDXX expense ratio and minimum?
0.30% net (annual or semi-annual report, 04/30/2026) and 0.36% gross (06/29/2026), with a $100,000 minimum to invest.
Is FZDXX a government or prime money market fund?
Prime. Besides Treasury debt and repurchase agreements it holds bank CDs, time deposits and commercial paper (about 9.6% financial and non-financial commercial paper as of August 31, 2026). Fidelity's disclosure says the fund may impose a fee upon the sale of your shares.
FZDXX vs SPAXX: which pays more?
FZDXX: 3.68% vs 3.49% on October 2, 2026. The extra 0.19% comes with a $100,000 minimum, prime (non-government) holdings and possible redemption fees. SPAXX is a government fund with no minimum.
Is FZDXX income exempt from state tax?
Mostly not. Only the portion from direct U.S. Treasury obligations may be state-exempt; income from commercial paper, CDs and repurchase agreements is generally taxable by states.
Is FZDXX FDIC insured?
No. It is a money market fund, not a bank deposit, and can lose value.
More: SPAXX review · VUSXX review
My take
FZDXX pays a little more than SPAXX for $100,000-plus Fidelity balances, in exchange for prime holdings and a possible sale fee. It is still a variable-rate cash tool. For money you won't touch for five years, a fixed annuity locks in a higher rate.
Hans Goldstein is an independent licensed insurance producer (CA license 4273294, NPN 20602398). He is not affiliated with Fidelity, does not sell money market funds or other securities, and gives no advice on them. Fund data is copied from the fund company's website as of the dates shown. Money market funds are not FDIC insured and can lose value. Past performance does not predict future results. MYGA figures are illustrations, not quotes.
A multi-year guaranteed annuity (MYGA) is the insurance version of a CD: one fixed rate for a set term. As of October 14, 2026, A-rated-or-better insurers were paying about 5.50% to 6.05% on 5-year MYGAs. The best nationally available 5-year CDs paid about 4.70% to 5.00% APY, and big-institution 5-year CDs less (as of September 24, 2026: Capital One 360 60-month 3.60%, Navy Federal 5-year 3.85 to 3.90%). A MYGA also defers the tax, where a CD or money market fund is taxed every year on interest you have not spent.
The trade is liquidity: breaking a MYGA early costs a surrender charge, not a few months of interest, and it is backed by the insurer and your state guaranty association rather than the FDIC. See the side-by-side · Current MYGA rates
Sources: public carrier rate sheets (MYGAs, as of October 14, 2026; rates vary by state, premium and carrier); Bankrate 5-year CD table (as of October 14, 2026); capitalone.com; navyfederal.org (as of September 24, 2026). Rates change often; confirm before you buy.
$100K+ in FZDXX? Compare a locked rate
Talk to Hans Goldstein, a licensed independent insurance producer.
FZDXX yielded 3.68% on October 2, 2026, and that rate floats. A-rated 5-year MYGAs were paying about 5.50% to 6.05% on October 14, 2026, fixed for the term and tax-deferred.
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Hans Goldstein · 213-414-2808 · NPN 20602398, independent licensed insurance producer appointed with multiple A-rated carriers
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Disclosure
This review reflects publicly available fund prospectuses, fact sheets, and approximate 7-day SEC yields as of the date stated above. Money market fund yields change daily and reset roughly in line with the federal funds rate; always confirm current yield, expense ratio, holdings, and weighted average maturity against the most recent fund disclosure document before committing capital. Money market funds are not FDIC-insured. Government and Treasury money market funds historically maintain a stable $1.00 NAV but are not guaranteed to do so. See the "breaking the buck" history. Prime money market funds may impose liquidity fees or redemption gates during market stress. This is general education, not a personal recommendation or an offer of any product. Hans Goldstein is an independent licensed insurance producer (NPN 20602398) and does not sell securities or money market funds; comparisons to multi-year guaranteed annuities (MYGAs) are provided for informational context only. No compensation has been received from any fund company in connection with the publication of this review. Always read the actual fund prospectus and consult a licensed advisor before investing. Past yield does not predict future yield. State income tax treatment of U.S. Treasury obligations varies and is subject to change. Tax discussion reflects federal and California law as of 2026 and is subject to change.