Fidelity helps more than 40 million people invest their money for just about anything: planning for retirement, paying for college or simply building wealth. The company offers a wide range of products depending on your risk tolerance -- from bonds and certificates of deposit on the low end to crypto and stocks on the high end.
Fidelity’s CD offerings are unique compared with the majority of CD accounts at banks and credit unions. These are brokered CDs, which means you’ll buy them via your Fidelity brokerage account. Fidelity, however, doesn’t actually issue them -- they come from FDIC-insured banks.
Fidelity CDs: At a glance
| CD types offered | Brokered CDs |
| Minimum deposit | $100, higher yields reserved for $1,000 investments |
| Term lengths | 3 months to 60 months (5 years) |
| Compounding schedule | None -- Interest on new issue CDs |
| Early withdrawal penalties | None, but they’ll be sold on a secondary market, which may create a gain or loss depending on market conditions |
| Grace period | None -- your CD will automatically mature unless you sign up for Fidelity’s Auto Roll program, which automatically reinvests your money (ideal for CD laddering) |
Fidelity CD rates
Fidelity’s CD offerings can be significantly more complicated than standard bank CDs with typical terms. Fidelity’s selection includes callable and step-rate CDs, which carry a range of different considerations. With that in mind, it’s important to read the fine print of each CD to make sure it fits your saving goals.
Fidelity CD terms and payout
One of the key points of distinction with Fidelity’s CD offerings is fractional investing. Many of the best bank CD rates come with high minimum deposit requirements, but you can purchase some of the CDs offered on Fidelity’s platform with just $100. That can be useful, though it’s important to remember that smaller deposits will reap smaller earnings. Plus, Fidelity's rates for fractional CDs are lower than the standard $1,000 chunks.
For CDs that are one-year or shorter, customers will receive their interest at maturity. Longer-term CDs come with recurring interest payouts -- monthly, quarterly, semiannually or annually, depending on the issuing bank.
What happens after your Fidelity CD matures?
There aren’t any grace periods with Fidelity CDs. The bank’s default option is that your CD simply reaches its maturity date, and the principal amount plus your interest earnings will be deposited into your settlement account. However, Fidelity also offers an Auto Roll program. If you opt in to the program, your CD will automatically renew with a CD of the same maturity length. Fidelity’s service automatically searches for the highest-yielding comparable CD. So, if you’re planning to build a CD ladder, the service can remove any of your work.
Early withdrawal penalties
If you need the money in your CD before it reaches its maturity date, you may be able to sell it on Fidelity’s secondary market without incurring a typical withdrawal penalty that you would from a bank or credit union. However, there’s a $1 fee for every $1,000 of value. Additionally, Fidelity points out that it isn't always easy to actually find a buyer for CDs on the secondary market. While you might not pay an upfront cost labeled “early withdrawal penalty,” you'll likely still lose money via the potential for markdowns and interest rate changes that make buying it look not all that appealing. So, the same rule that you should follow with standard bank CDs still applies here: Only open a CD if you’re totally comfortable with leaving the money in for the full term.
Example: How much can you earn with a Fidelity CD?
While Fidelity’s website indicates that it also offers CDs of up to 20 years, the company currently lists annual percentage yields for the following CDs. Here’s a rundown of your earning power based on an initial investment of $10,000, all purchased in amounts of at least $1,000 rather than fractionally invested.
| CD term | APY | Total interest |
| 3 months | 5.00% | $125 |
| 6 months | 5.05% | $252.50 |
| 9 months | 5.05% | $378.75 |
| 12 months | 5.00% | $505 |
| 18 months | 4.95% | $742.50 |
| 2 years | 4.80% | $960 |
| 3 years | 4.60% | $1,380 |
| 4 years | 4.55% | $1,820 |
| 5 years | 4.45% | $2,225 |
APY rates are as of April 26, 2023.
How do Fidelity CD rates compare?
Fidelity’s CD rates are higher than many banks and credit unions included in our roundup of the best CD rates. This is a great choice for opening a CD, especially if you’re looking for short-term accounts. For example, Fidelity’s 5% APY on six-month CDs tops Alliant Credit Union, Bask Bank and Marcus by Goldman Sachs -- three of the banks and credit unions that are known for offering high yields.
How to open a Fidelity CD
Before you can open a CD with Fidelity, you’ll need to open a brokerage account with the investment firm. It’s an easy process you can complete online. Just be ready to hand over your personal information, including your employment information, and input your bank account information to initiate a transfer to fund the CD.
What other savings options does Fidelity offer?
While Fidelity focuses on investing opportunities -- that is, products that do carry some degree of the risk of not actually getting your money back -- the Fidelity Cash Management Account can act as a substitute for your savings or checking account. It pays a 2.47% yield, which is significantly higher than most checking accounts, and it reimburses all ATM fees. Plus, there are no minimum balance requirements or monthly fees to worry about.
