EXHIBIT M(8)


DISTRIBUTION AND SERVICE PLAN
FIDELITY NEWBURY STREET TRUST: TAX-EXEMPT FUND
CAPITAL RESERVES CLASS

 1. This Distribution and Service Plan (the "Plan"), when effective in
accordance with its terms, shall be the written plan contemplated by
Securities and Exchange Commission Rule 12b-1 under the Investment
Company Act of 1940, as amended (the "Act") for the Capital Reserves
Class shares (the "Capital Reserves Class"), a class of shares of
Tax-Exempt Fund (the "Fund"), a series of Newbury Street Trust (the
"Trust").

 2. The Trust has entered into a General Distribution Agreement on
behalf of the Fund with Fidelity Distributors Corporation (the
"Distributor"), under which the Distributor uses all reasonable
efforts, consistent with its other business, to secure purchasers of
the Fund's shares of beneficial interest (the "Shares"). Such efforts
may include, but neither are required to include nor are limited to,
the following:

  (1) formulation and implementation of marketing and promotional
activities, such as mail promotions and television, radio, newspaper,
magazine and other mass media advertising;

  (2) preparation, printing and distribution of sales literature;

  (3) preparation, printing and distribution of prospectuses of the
Fund and reports to recipients other than existing shareholders of the
Fund;

  (4) obtaining such information, analyses and reports with respect to
marketing and promotional activities as the Distributor may from time
to time, deem advisable;

  (5) making payments to securities dealers and others engaged in the
sales of Shares or who engage in shareholder support services
("Investment Professionals"); and

  (6) providing training, marketing and support to Investment
Professionals with respect to the sale of Shares.

 3. In consideration for the services provided and the expenses
incurred by the Distributor pursuant to the General Distribution
Agreement and paragraph 2 hereof, all with respect to Capital Reserves
Class shares, Capital Reserves Class of the Fund shall pay to the
Distributor a fee at the annual rate of up to 0.50% of average daily
net assets of Capital Reserves Class throughout the month, or such
lesser amount as may be established from time to time by the Trustees
of the Trust, as specified in paragraph 6 of this Plan; provided that,
for any period during which the total of such fee and all other
expenses of the Fund (or of Capital Reserves Class), would exceed the
gross income of the Fund (or of Capital Reserves Class), such fee
shall be reduced by such excess. Such fee shall be computed and paid
monthly. The determination of daily net assets shall be made at the
close of business each day throughout the month and computed in the
manner specified in the Fund's then current Prospectus for the
determination of the net asset value of shares of Capital Reserves
Class, but shall exclude assets attributable to any other Class of the
Fund. The Distributor may, but may not be required to, use all or any
portion of the fee received pursuant to the Plan to compensate
Investment Professionals who have engaged in the sale of Capital
Reserves Class Shares or in shareholder support services with respect
to Capital Reserves Class Shares pursuant to agreements with the
Distributor, or to pay any of the expenses associated with other
activities authorized under paragraph 2 thereof.

 4. The Fund presently pays, and will continue to pay, a management
fee to Fidelity Management & Research Company (the "Adviser") pursuant
to a management agreement between the Fund and the Adviser (the
"Management Contract"). It is recognized that the Adviser may use its
management fee revenue, as well as its past profits or its resources
from any other source, to make payment to the Distributor for expenses
incurred in connection with the distribution of Capital Reserves Class
Shares, including the activities referred to in paragraphs 2 and 3
hereof. To the extent that the payment of management fees by the Fund
to the Adviser should be deemed to be indirect financing of any
activity primarily intended to result in the sale of Capital Reserves
Class Shares within the meaning of Rule 12b-1, then such payment shall
be deemed to be authorized by this Plan. In addition to the payments
made under paragraph 3, the Distributor may use all or any portion of
the payments received from the Adviser pursuant to this paragraph to
compensate Investment Professionals in connection with the
distribution of Capital Reserves Class Shares; such payments shall not
exceed on an annual basis the management fee set forth in the
Management Contract.

 5. This Plan shall become effective upon the approval by a vote of a
majority of the Trustees of the Trust, including a majority of
Trustees who are not "interested persons" of the Trust (as defined in
the Act) and who have no direct or indirect financial interest in the
operation of this Plan or in any agreement related to the Plan (the
"Independent Trustees"), cast in person at a meeting called for the
purpose of voting on this Plan.

 6. This Plan shall, unless terminated as hereinafter provided, remain
in effect until April 30, 2000, and from year to year thereafter;
provided, however, that such continuance is subject to approval
annually by a vote of a majority of the Trustees of the Trust,
including a majority of the Independent Trustees, cast in person at a
meeting called for the purpose of voting on this Plan. This Plan may
be amended at any time by the Board of Trustees, provided that (a) any
amendment to increase materially the fee provided for in paragraph 3
hereof shall be effective only upon approval by a vote of a majority
of the outstanding voting securities of Capital Reserves Class, and
(b) any material amendment of this Plan shall be effective only upon
approval in the manner provided in the first sentence of this
paragraph 6.

 7. This Plan may be terminated at any time, without the payment of
any penalty, by vote of a majority of the Independent Trustees or by a
vote of a majority of the outstanding voting securities of the Class.

 8. During the existence of this Plan, the Trust shall require the
Adviser and/or the Distributor to provide the Trust, for review by the
Trustees, and the Trustees shall review, at least quarterly, a written
report of the amounts expended in connection with financing any
activity primarily intended to result in the sale of Capital Reserves
Class Shares (making estimates of such costs where necessary or
desirable) and the purposes for which such expenditures were made.

 9. This Plan does not require the Adviser or Distributor to perform
any specific type or level of distribution activities or to incur any
specific level of expenses for activities primarily intended to result
in the sale of Capital Reserves Class Shares.

 10. Consistent with the limitation of shareholder liability as set
forth in the Trust's Trust Instrument, any obligation assumed by
Capital Reserves Class pursuant to this Plan or any agreement related
to this Plan shall be limited in all cases to Capital Reserves Class
and its assets and shall not constitute an obligation of any
shareholder of the Trust or of any other class of the Fund, series of
the Trust or class of such series.

 11. If any provision of the Plan shall be held or made invalid by a
court decision, statute, rule or otherwise, the remainder of the Plan
shall not be affected thereby.