Table of Contents
Table of Contents
Fidelity CD Rates
Fidelity CDs: Key Features
About Fidelity Investments
Compare CD Account Rates
FAQ
Your Guide to CDs
- Banking
- Certificate of Deposits (CDs)
Fidelity's brokered CDs offer competitive rates but also different risks
By
Ben Luthi
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Full Bio
Ben Luthi has been writing about credit cards and personal finance for six years and has written for U.S. News, NerdWallet, CreditCards.com and Experian, among others. Ben has developed many of Investopedia's in-depth credit card reviews and enjoys collecting and redeeming credit card miles and points in his everyday life and international travels.
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Updated March 22, 2024
Fact checked by
Hans Daniel Jasperson
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Fact checked byHans Daniel Jasperson
Full Bio
Hans Daniel Jasperson has over a decade of experience in public policy research, with an emphasis on workforce development, education, and economic justice. His research has been shared with members of the U.S. Congress, federal agencies, and policymakers in several states.
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Fidelity CD Rates
Fidelity offers brokered certificates of deposit (CDs), which function similarly to traditional bank CDs for the most part. Brokers purchase bank CDs in large denominations, then resell them to their customers in smaller denominations.
Fidelity offers two types of CDs—standard new issue CDs and fractional CDs—with varying terms. Fidelity’s CD rates are competitive, but it's important to understand how they work and their potential risks before you open one.
The APYs listed below are up to date as of the date of publication of this article. We review CD rates every two weeks and update the information below accordingly.
| New Issue CD Rates Overview | ||
|---|---|---|
| CD Term | APY | Minimum Deposit |
| 3 months | 5.35% | $1,000 |
| 6 months | 5.30% | $1,000 |
| 9 months | 5.25% | $1,000 |
| 12 months | 5.15% | $1,000 |
| 18 months | 5.05% | $1,000 |
| 24 months | 4.85% | $1,000 |
| 36 months | 4.70% | $1,000 |
| 48 months | 4.50% | $1,000 |
| 60 months | 4.35% | $1,000 |
| Fractional CD Rates Overview | ||
|---|---|---|
| CD Term | APY | Minimum Deposit |
| 3 months | 5.35% | $100 |
| 6 months | - | $100 |
| 9 months | 5.25% | $100 |
| 12 months | 5.10% | $100 |
| 18 months | 5.05% | $100 |
| 24 months | 4.85% | $100 |
See thebest CD ratestoday before choosing the CD that is best for you.
Fidelity CDs: Key Features
| New Issue CD Key Features | |
|---|---|
| APY Range | 4.35%–5.35% |
| Minimum Deposit | $1,000 |
| Term Range | 3–60 months |
| Trading Fee Upon Sale | $1 per CD |
Fidelity's new issue CDs are sold in $1,000 increments—if you want to invest $10,000, for instance, you'd buy 10 CDs. You can also purchase prepackaged CD ladders with varying terms. There are typically from 50 to 100 new issue offerings at any point in time. There's no trading fee to purchase a new issue CD.
There's also no early withdrawal penalty if you decide to liquidate your CD. Instead, you'll sell the CD on the broker's secondary market. If you do so, there's a fee of $1 per CD.
Because interest rates on brokered CDs can fluctuate daily, though, your CD may be worth less than its original value on the secondary market, which means you may get less than your original investment if you decide to sell.
| Fractional CD Key Features | |
|---|---|
| APY Range | 4.85%–5.35% |
| Minimum Deposit | $100 |
| Term Range | 3–24 months |
| Trading Fee Upon Sale | $1 per CD |
Fidelity's Fractional CD differs from its traditional new issue CDs by offering lower minimums—each CD starts at $100. However, interest rates are a bit different, and term options are more limited.
There's no fee to purchase a fractional CD; if you decide to sell, the same trading fee and potential risks apply as with new issue CDs.
Your ability to sell your CD on the secondary market depends on whether there are investors interested in buying it. As a result, there's no guarantee that you'll be able to sell your CD when you want to, which increases your liquidity risk compared to a bank CD.
About Fidelity Investments
Fidelity Investments offers brokered CDs to its customers nationwide, but you'll need to have a brokerage account to buy them. Compared to CD rates offered by banks, the best Fidelity CD rates are quite competitive and worth exploring.
While the brokerage firm offers a cash management account, which offers a high APY and can be used like a checking account with a debit card and check-writing privileges, it doesn't offer any typical bank account products or services.
Compare CD Account Rates
Fidelity's CDs are safe investments that can guarantee a certain return, and some have very competitive APYs. But they come with certain limitations, as well. See a broader selection of savings accounts below to find the right place for your money.
Are Fidelity CD Rates Competitive?
Yes, CD rates at Fidelity Investments are competitive with the top CD rates from traditional banks and credit unions. Before you invest in a brokered CD with Fidelity, shop around to ensure you get the best rate based on your deposit and liquidity needs.
What Is the Minimum Deposit for Fidelity CDs?
For Fidelity’s standard new issue CDs, the minimum investment is $1,000, and you have to purchase CDs in $1,000 increments. If you want more flexibility, you can opt for a fractional CD, which has a minimum investment of just $100. Learn more about the pros and cons of brokered CDs.
How Do You Open a Fidelity CD Account?
You can open a Fidelity brokerage account online through the broker's website. To do so, you'll need to provide some basic information about yourself, including your name, date of birth, Social Security number, and employment information.
If you'd like to transfer funds from your bank or another brokerage account to your new Fidelity account, you can do so during the account opening process.
Are Fidelity CDs FDIC-Insured?
Yes, because Fidelity buys large-denomination CDs from banks, your investment is technically an obligation of the issuing banks and, therefore, FDIC-insured.
What's more, because Fidelity purchases CDs from various issuing banks, you may be able to get more than the standard limit of $250,000 in FDIC coverage per account owner, per issuer, without needing to open multiple brokerage accounts.
Your Guide to CDs
- What Is a Certificate of Deposit (CD)?
- What Is a Brokered CD?
- What Is a CD Ladder?
- Pros and Cons of CDs
- How to Invest With CDs
- How to Open a CD
- How to Close a CD
- CDs vs. Annuities
- CDs vs. Stocks
- CDs vs. Mutual Funds
- CDs vs. ETFs
- CDs vs. Savings Accounts
- Short-Term vs. Long-Term CDs
- CD Rates News
- Best 1-Year CD Rates
- Best 18-Month CDs
- Best Jumbo CD Rates
- Best 6-Month CD Rates
- Best 3-Month CD Rates
- Best Bank CD Rates
Article Sources
Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in oureditorial policy.
Fidelity. "Certificates of Deposit (CDs)."
Fidelity. "Fractional CDs."
Fidelity. "Fixed Income, Bonds & CDs."
Fidelity. "Fixed Income."
Fidelity. "Open an Account."
Fidelity. "Go Beyond Banking With Fidelity Cash Management."
Fidelity. "Let's Open Your Brokerage Account."
Related Terms
Types of Specialty Certificates of Deposit (CDs) Explained
Specialty CDs offer features such as the ability to add to the principal or avoid early withdrawal fees. Some options offer more flexibility but may have lower rates than standard CDs.
more
Brokered CD Definition, Pros/Cons, Other Types
A brokered certificate of deposit is a CD that an investor purchases through a brokerage firm or from a sales representative other than a bank.
more
Add-On CDs: Meaning, Pros and Cons, Example
Add-on CDs are specialty CDs that allow you to add more funds to your CD after the initial deposit. Learn whether an add-on or standard CD is a better choice for you.
more
What Is a Certificate of Deposit (CD) and What Can It Do for You?
A certificate of deposit (CD) is a type of savings account offered by banks and credit unions that pays a fixed interest rate on money held for an agreed upon period of time.
more
CD Early Withdrawal Penalty
You may have to pay an early withdrawal penalty to take money out of a certificate of deposit before its term ends. Here's what you need to know.
more
Fixed-Rate Certificate of Deposit (CD): What It Is, How It Works
A fixed-rate certificate of deposit (CD) is a low-risk investment instrument that has a set interest rate over its entire term.
more
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