Fidelity Government Money Market Fund (SPAXX): 7-Day Yield 3.49% 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
SPAXX's 7-day yield was 3.49% as of October 2, 2026, per Fidelity, with a 0.42% expense ratio, no minimum and a $1.00 NAV. SPAXX is the Fidelity Government Money Market Fund, the default core cash position in many Fidelity accounts. The same day, lower-cost Vanguard Treasury (VUSXX) paid 3.82%, and Fidelity's own FDRXX paid 3.56% with the same $0 minimum.
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.
SPAXX at a glance
| SPAXX fact | Value | As of |
|---|---|---|
| 7-day yield | 3.49% | 10/02/2026 |
| NAV | $1.00 | 10/02/2026 |
| Expense ratio, gross / net | 0.42% / 0.42% | 06/29/2026 / 04/30/2026 |
| Minimum to invest | $0 | current |
| Portfolio net assets | $461.3 billion | 08/31/2026 |
| Weighted average maturity / life | 39 days / 109 days | 09/22/2026 |
| Average annual return, 1 / 3 / 5 / 10 yr | 3.44% / 4.22% / 3.48% / 2.14% | 09/30/2026 |
What SPAXX holds
| Instrument | Weight |
|---|---|
| U.S. Treasury bills | 32.51% |
| U.S. Treasury coupons | 7.97% |
| Agency fixed-rate securities | 8.78% |
| Agency floating-rate securities | 19.50% |
| U.S. government repurchase agreements | 33.53% |
| Net other assets | -2.29% |
SPAXX invests at least 99.5% of assets in cash, U.S. government securities and fully collateralized repurchase agreements. With a 39-day weighted average maturity, its yield follows Federal Reserve moves within weeks.
SPAXX vs other money funds (October 2, 2026)
| Fund | Type | 7-day yield | Expense | Minimum |
|---|---|---|---|---|
| SPAXX (Fidelity Government MMF) | Government | 3.49% (10/02) | 0.42% | $0 |
| FZDXX (Fidelity MMF Premium Class) | Prime | 3.68% (10/02) | 0.30% net | $100,000 |
| VUSXX (Vanguard Treasury MMF) | Treasury | 3.82% (10/02) | 0.07% | $3,000 |
| SNSXX (Schwab U.S. Treasury Money Fund) | Treasury | 3.54% (10/02) | 0.34% | None |
- Cost is the gap. SPAXX's 0.42% expense ratio is six times VUSXX's 0.07%, which explains most of the 0.33% yield difference.
- Convenience is the reason to stay. SPAXX settles trades automatically in a Fidelity account; moving cash to another fund is a manual step.
- No redemption fee. Fidelity says its government and Treasury money market funds will not impose a fee on the sale of shares.
Rates expire like milk.
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SPAXX vs. a 5-year MYGA: $250,000 math
SPAXX is a cash tool: 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 | SPAXX at 3.49% (held constant) | 5-yr MYGA at 5.50% |
|---|---|---|
| Value after 5 years, after 24% federal tax | ~$285,000 | ~$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 $23,300 more after federal tax on the MYGA, and the SPAXX 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
What is SPAXX on Fidelity?
SPAXX is the ticker for the Fidelity Government Money Market Fund. In many Fidelity brokerage accounts it is the core position: uninvested cash and sale proceeds land there automatically, and buys are paid out of it. You do not have to buy it on purpose; if you have cash in a Fidelity account, it is often already in SPAXX. Some account types let you pick a different core fund, which is the choice compared in SPAXX vs FDRXX.
Do you make money on SPAXX? How it pays you
Yes. SPAXX earns interest from the Treasury bills, agency notes and repurchase agreements it holds and passes it to you as dividends. Fidelity money market funds accrue dividends daily and pay them monthly, and in a core position the dividend is reinvested in more SPAXX shares unless you change that. The share price stays at $1.00, so all of your return shows up as more shares, not a higher price.
Example: $100,000 in SPAXX at the 3.49% 7-day yield of October 2, 2026 earns about $291 a month before tax, if the yield held for the month. It will not hold exactly: the yield moves with short-term rates, which is explained in how money fund yields follow the Fed.
Is it smart to keep money in SPAXX?
For cash you will spend or invest soon, SPAXX is a reasonable place: government-only holdings, daily access, no minimum and no redemption fee. The cost is the 0.42% expense ratio. On October 2, 2026 that left SPAXX 0.33 points behind VUSXX, which on $250,000 is roughly $825 a year of yield at those rates. For a balance that will sit for years, compare it with the funds on this month's money market fund ranking and with a fixed rate.
FDLXX vs SPAXX, and the rest of Fidelity's money funds (October 2026)
FDLXX (Fidelity Treasury Only Money Market Fund) paid the same 3.49% as SPAXX on October 2, 2026. The difference is what they hold: FDLXX owns only U.S. Treasury securities, while SPAXX also holds agency debt and repurchase agreements. More of FDLXX's income can be exempt from state income tax, which matters in high-tax states. See the FDLXX review and how state tax works on Treasury interest.
| Fidelity fund | Type | 7-day yield (10/02/2026) | Gross expense | Minimum |
|---|---|---|---|---|
| SPAXX Government Money Market | Government | 3.49% | 0.42% | $0 |
| FDRXX Government Cash Reserves | Government | 3.56% | 0.37% | $0 |
| FDLXX Treasury Only Money Market | Treasury | 3.49% | 0.42% | $0 |
| FZFXX Treasury Money Market | Treasury | 3.53% | 0.42% | $0 |
| SPRXX Money Market Fund | Prime | 3.56% | 0.42% | $0 |
| FZDXX Money Market Premium Class | Prime | 3.68% | 0.36% (0.30% net) | $100,000 |
From my desk: how I compare this to locked rates
When someone sends me a Fidelity statement, the line I look at first is how long the cash has been sitting in SPAXX. Money you will need in the next few months belongs in a money fund. Money that has not moved in a year or more is the part I compare with a locked rate, because SPAXX resets every day and is taxed every year.
Example: $250,000 held five years at SPAXX’s 3.49% (assumed constant) ends near $285,000 after 24% federal tax. The same money in a 5-year MYGA at 5.50% (the 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. MYGA rates are 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.
SPAXX: FAQ
What is the SPAXX 7-day yield?
3.49% as of October 2, 2026, per Fidelity's fund research page. Money market yields change daily with short-term rates.
What is the SPAXX expense ratio?
0.42%, both gross (as of 06/29/2026) and net (annual or semi-annual report, 04/30/2026), per Fidelity.
Is there a minimum for SPAXX?
No. Fidelity lists a $0 minimum. SPAXX is a common core (cash sweep) position in Fidelity brokerage accounts.
What does SPAXX hold?
As of August 31, 2026: U.S. Treasury bills 32.51%, Treasury coupons 7.97%, agency fixed-rate 8.78%, agency floating-rate 19.50%, and U.S. government repurchase agreements 33.53%. Weighted average maturity was 39 days on September 22, 2026.
Is SPAXX income exempt from state tax?
Only partly. The share of income from direct U.S. government obligations may be state-exempt; income from repurchase agreements generally is not. Fidelity publishes the percentage each year for tax filing.
SPAXX or FZDXX?
On October 2, 2026 FZDXX (Fidelity Money Market Fund Premium Class) yielded 3.68% versus 3.49% for SPAXX, but FZDXX needs $100,000, is a prime fund that holds commercial paper and CDs, and may impose a fee on redemptions. SPAXX is a government fund and Fidelity says its government funds will not impose that fee.
Is SPAXX FDIC insured?
No. It is a money market fund, not a bank deposit. It seeks to preserve $1.00 per share but cannot guarantee it.
More: FZDXX review · SPAXX vs FDRXX · VUSXX review
My take
SPAXX is a convenient, government-only place for Fidelity cash at 3.49%. Its 0.42% expense ratio is the cost of that convenience. For larger balances, compare lower-cost Treasury funds; for five-year money, compare a fixed annuity.
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.
Cash sitting in SPAXX for years? See what a MYGA pays
Talk to Hans Goldstein, a licensed independent insurance producer.
SPAXX yielded 3.49% on October 2, 2026, variable and taxed every year. A-rated 5-year MYGAs were paying about 5.50%-6.05% on October 14, 2026, fixed 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.