Fidelity Cuts Capital One from Sweeps
Fidelity Investments says in a recent "FDIC Insured Deposit Sweep Program" disclosure, "Capital One Bank removal: As a result of the recent program bank list consolidation, Capital One Bank ('Capital One') will no longer participate in the Fidelity FDIC – Insured Deposit Sweep Program (the 'Program'). This change will affect Fidelity Cash Management Accounts and eligible Individual Retirement Accounts ('Retirement Accounts') that utilize the Program." They explain, "As a result, Fidelity will take the following steps: All eligible Fidelity Cash Management Accounts and Fidelity Retirement Accounts with a Program Bank list that includes Capital One as the first bank (the Primary Core Bank) will be assigned an updated Program Bank list with a new Primary Core Bank. For Fidelity Cash Management Accounts, on or around September 14, 2026, customers will be assigned the bank list with Leader Bank as the Primary Core Bank. For Fidelity Retirement Accounts, on or around September 21, 2026, customers will be assigned the bank list with Santander, Morgan Stanley, Morgan Stanley Private, or Leader Bank as the Primary Core Bank. Customers will receive a Revised Account Profile which will include the updated bank list." It states, "For Fidelity Cash Management Accounts, Fidelity will withdraw all customers' Program Deposits (other than accrued interest) from Capital One on or around September 16, 2026. For Fidelity Retirement Accounts, Fidelity will withdraw all customers' Program Deposits (other than accrued interest) from Capital One on or around September 23, 2026. These funds will be swept to the banks on the Program Bank List assigned to their account. Any accrued interest earned on Program Deposits at Capital One up through the date of the transfer will remain at the bank until it is posted to the customer's account and swept to the banks on the Program Bank List. This will occur on or around October 1, 2026."
