Fidelity outlines seven alternatives for savers as money market yields drop from 5.42% to 3.83%
By
Damilola Esebame
Slow-proofed and worth the wait. Worth its weight in flour.
Summary
Fidelity Investments published a guide highlighting the low returns on typical U.S. checking (0.07%) and savings accounts (0.38%), compared to government money market funds which dropped from 5.42% in December 2023 to 3.83% by December 2025. The article outlines seven investment vehicles designed to help savers earn more on idle cash as yields continue declining across the market.
Key quotes
· 3 pulledThe average U.S. checking account yields just 0.07%, while the typical savings account delivers only 0.38% in annual returns, according to FDIC data.
Government money market funds that averaged a 5.42% seven-day yield in December 2023 dropped to 3.83% by December 2025, according to SEC Money Market Fund Statistics.
Those falling returns create urgency for savers who want their uninvested dollars working harder before yields decline any further across the market.
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