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Yes, you protect yourself by having multiple accounts. Which you conceptually treat as one account.
With these Fidelity accounts you essentially have a checking account that earns money market rates. And no hoops to jump through, like having to make 10 debit card transactions a month and direct deposit $x00 a month and keep $X000 minimum balance.
#1 is a CMA ("Spend & Save") which you write checks on. Core (sweep) account is FCASH, pays 2.7%. Free checks, debit card reimburses fees. All withdrawals come from this account.
#2 is an "Investment" account. Core (sweep) account is SPAXX, pays 5%. All deposits go to this account.
#3 optional. Another CMA or invest account, your choice. This is your "real" savings account.
Set cash management on #1 to self-funded overdraft, & minimum balance $10, using #2 as the source of funds.
Overdrafts from checks instantly pull money from #2, from the core account SPAXX.
Nightly, if the balance of #1 is below the minimum ($10), they automatically pull $250 from #2.
To move money from #1 to #2, you have to do that manually. But you never have to do that.
Direct deposits (paycheck, pension, SS, etc.) get deposited into #2.
The maximum that bad guys can drain is the total balance of #1 & #2. Essentially, your checking account. Same as any normal bank account which you have a debit card for.
Mentally decide on the high water mark of how much cash you want to keep in #1+#2. When you hit that, manually transfer the excess to the #3 ("savings") account.
If #3 is a CMA, FCASH is the core sweep, 2.7%.
If #3 is an "Investment" account. Core (sweep) account is SPAXX, pays 5%.
Oh, you can also have account #4. You "real" investment account, where you own stocks & mutual funds.
You would have $0 to $250 in #1, $2000 in #2, and $100,000 in #3, and the most a bad guy could hit you for is $2250.
I used to play this game in Alliant CU. Checking pays 0.25%, savings pays 3.10%. Direct deposit went into checking. Then after paying the bills I would move the remaining balance into savings. You can set checking overdraft protection to have them pull money from a savings account, but I suspect that if this happened often they would slap your hand. Banks don't like it when you never deposit money into your checking account except for automatic overdraft protection.
Fidelity encourages you to set it up, so no risk of handslapping.
