SUPPLEMENT TO THE FIDELITY     
   CASH RESERVES AND FIDELITY     
   U.S. GOVERNMENT RESERVES     
   PROSPECTUS
    
   DATED JANUARY 11, 1994    
   The following information     
   replaces similar information     
   found in the     "EXPENSES" 
   section  on page 5:    
   The following are projections     
   based on historical expenses     
   adjusted to reflect the current     
   contract for Cash Reserves     
   and the revised management     
   fee structure for U.S.     
   Government Reserves, and are     
   calculated as a percentage of     
   average net assets.    
       CASH RESERVES       
    Management fee     .20%   
    
    12b-1 fee     None   
    
    Other expenses      .34%   
    
        Total fund operating expenses        .54
%       
       U.S. GOVERNMENT RESERVES       
    Management fee (after agreement)     
       .20%   
    
   12b-1 fee     None   
    
   Other expenses       .30%   
    
       Total fund operating expenses        .50%       
       EXAMPLES   : Let's say,     
   hypothetically, that each fund's     
   annual return is 5% and that its     
   operating expenses are exactly     
   as just described. For every     
   $1,000 you invested, here's     
   how much you would have paid     
   in total expenses if you closed     
   your account after the number     
   of years indicated:    
       CASH RESERVES       
    After 1 year     $ 6   
    
    After 3 years     $ 17   
    
    After 5 years      $ 30   
    
        After 10 years        $ 68       
       U.S. GOVERNMENT RESERVES       
    After 1 year     $  5   
    
    After 3 years     $ 16   
    
    After 5 years       $ 28   
    
        After 10 years        $ 63       
   FMR has voluntarily agreed to     
   adopt a revised management     
   fee structure for U.S.     
   Government Reserves. If this     
   agreement were not in effect     
   for U.S. Government Reserves,     
   the management fee, other     
   expenses, and total operating     
   expenses would be .45%,     
   .30%, and .75%, respectively.    
   SUPPLEMENT TO THE FIDELITY     
   CASH RESERVES AND FIDELITY     
   U.S. GOVERNMENT RESERVES     
   PROSPECTUS
    
   DATED JANUARY 11, 1994    
   The following information     
   replaces similar information     
   found in the     "EXPENSES" 
   section  on page 5:    
   The following are projections     
   based on historical expenses     
   adjusted to reflect the current     
   contract for Cash Reserves     
   and the revised management     
   fee structure for U.S.     
   Government Reserves, and are     
   calculated as a percentage of     
   average net assets.    
       CASH RESERVES       
    Management fee     .20%   
    
    12b-1 fee     None   
    
    Other expenses      .34%   
    
        Total fund operating expenses        .54
%       
       U.S. GOVERNMENT RESERVES       
    Management fee (after agreement)     
       .20%   
    
   12b-1 fee     None   
    
   Other expenses       .30%   
    
       Total fund operating expenses        .50%       
       EXAMPLES   : Let's say,     
   hypothetically, that each fund's     
   annual return is 5% and that its     
   operating expenses are exactly     
   as just described. For every     
   $1,000 you invested, here's     
   how much you would have paid     
   in total expenses if you closed     
   your account after the number     
   of years indicated:    
       CASH RESERVES       
    After 1 year     $ 6   
    
    After 3 years     $ 17   
    
    After 5 years      $ 30   
    
        After 10 years        $ 68       
       U.S. GOVERNMENT RESERVES       
    After 1 year     $  5   
    
    After 3 years     $ 16   
    
    After 5 years       $ 28   
    
        After 10 years        $ 63       
   FMR has voluntarily agreed to     
   adopt a revised management     
   fee structure for U.S.     
   Government Reserves. If this     
   agreement were not in effect     
   for U.S. Government Reserves,     
   the management fee, other     
   expenses, and total operating     
   expenses would be .45%,     
   .30%, and .75%, respectively.    
   CAS-94-1 March 25, 1994    
   CAS-94-1 March 25, 1994