Fidelity CDs: Pros, Cons, and Current Rates
- Understanding Fidelity CDs
- Fidelity CD Rates Today
- What Influences Fidelity CD Earnings
- Pros and Cons
- Should You Invest in Fidelity CDs?
- How Fidelity CD Rates Compare
- Why You Should Trust Us
- FAQs
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Fidelity is an investment, retirement planning, and financial advisory firm with locations around the U.S. It offers a wide range of financial products, including CDs.
If you're considering buying CDs to boost your savings, Fidelity CDs may be a smart option. Here's what to know about Fidelity CD rates before making your decision.
Understanding Fidelity CD Options
Types of CDs Available Through Fidelity
Fidelity offers brokered CDs, meaning the company purchases its CDs from other financial institutions and resells them to the customer. This allows consumers to open CDs with several banks at once — all with one point of contact through Fidelity.
Brokered CDs typically have higher interest rates than traditional CDs do, though interest doesn't compound as it usually does with regular CDs. Brokered CDs also don't charge early withdrawal penalties, and you can sell your CD any time if you need cash before it matures.
How to Buy CDs on Fidelity
To open a CD with Fidelity, you'll need a brokerage account or retirement account with the company first. This is where your CDs will be held and your interest deposited upon maturity. You can also select an "auto-roll" option that lets you roll your money — plus the interest you earned on it — into a new brokered CD once an old one matures.
Fidelity CD Rates Today
Note: Fidelity CD rates change frequently. We check rates every Monday to keep the rates in this article up to date.
Fidelity CD rates are significantly higher than the average CD rates, and some even rival or beat the highest CD rates on the market.
Fidelity's CD terms range from three months to twenty years and pay up to 5.20% APY (Annual Percentage Yield). Here's a look at how Fidelity CD rates break down by term:
| CD Term | APY (Annual Percentage Yield) |
| 3 months | 5.20% |
| 6 months | 5.05% |
| 9 months | 5.00% |
| 1 year | 5.05% |
| 18 months | 4.90% |
| 2 years | 4.95% |
| 3 years | 4.95% |
| 4 years | 4.80% |
| 5 years | 4.90% |
| 10 years | 5.00% |
| 20 years | 4.30% |
What Influences Fidelity CD Earnings
Trying to figure out if it's the right time to get a brokered CD? We'll explain important factors that influence CD earnings so you can see if a Fidelity CD is a suitable option for you.
Call Risk in CD Earnings
Brokerage firms like Fidelity can offer callable CDs. These CDs can be called back by the financial institution before your account reaches maturity. If your CD is called back, you won't earn the total interest you would've received if the CD had fully matured.
Financial institutions usually call back an account when CD rates drop. If rates are steady or rising, callable CDs are less likely to get called back.
Fidelity Partner Banks
Fidelity has CDs issued by banks. Brokerage customers benefit from this because they can get competitive CD rates that are significantly higher than average CD rates.
Market Fluctuations and the Fed's Actions
The Fed's actions can also impact Fidelity CD rates. CD rates fluctuate when the Federal raises or lowers the federal funds rate. Paying attention to upcoming Fed meetings can help you gauge whether CD rates might change in the future.
Fidelity CD Pros and Cons
Fidelity CD Pros
- High interest rates
- Many term options
- FDIC-insured
- No early withdrawal penalties
- You may sell your CDs at any time
- Auto-roll feature lets you automatically invest in a new CD at maturity
Fidelity CD Cons
- Interest does not compound
- You must have an existing brokerage or retirement account with Fidelity
- You may lose money if you sell your CD before maturity
Should You Invest in CDs Through Fidelity?
Fidelity CDs may be a good option if you're looking for brokered CDs with high interest rates. You must have a Fidelity brokerage account in order to get CDs.
Some of Fidelity's CD rates rival the best CD rates on the market — though like any brokered CD, they do not compound interest.
Fidelity CD Alternatives
Featured Nationally Available Deposit Rates
| Account Name | APY (Annual Percentage Yield) Accurate as of 7/31/2024 | Minimum Account Opening Balance |
| Western Alliance Bank High-Yield Savings Premier | 5.31% | $500 |
| Sterling Federal Bank 3 Month CD | 5.10% | $1 |
| Barclays 6 Month Online CD | 4.85% | $0 |
| SkyOne Federal Credit Union 1 Year No Penalty CD | 4.75% | $1 |
Fidelity CDs vs. Synchrony Bank CDs
Synchrony Bank CD rates are 0.25% to 5.15% APY, which aren't as high as Fidelity rates — though they're traditional CDs, so interest compounds daily. Synchrony also offers more CD options than Fidelity. While there are no brokered CDs, there are bump-up CDs and no-penalty CDs, and terms range from three months to five years. Both Fidelity and Synchrony Bank CD rates are higher than national averages.
Fidelity CDs vs. Capital One 360 CDs
Capital One 360 CD rates are high overall, but they're not quite as high as those offered by Fidelity. Capital One 360 CD rates are 3.90% to 5.00% APY. Capital One 360 CDs are traditional CDs with interest that compounds monthly.
Why You Should Trust Us: How We Reviewed Fidelity CDs
To review Fidelity CDs, we used Business Insider's certificate of deposit methodology. Our methodology considers interest rates, minimum deposit requirements, CD term variety, the company's overall ethics, mobile app quality, and customer service. We assign each category a rating on a scale of one to five, then average the scores together to reach an overall CD rating.
Note: We typically consider early withdrawal penalties, but we omitted this category when reviewing Fidelity CDs. As a general rule, brokered CDs do not carry early withdrawal penalties.
Fidelity CD Rates FAQs
Are Fidelity CDs legit? Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options.Yes, Fidelity CDs are legitimate certificates of deposit. They allow you to earn a preestablished interest rate on a single deposit if held to maturity — anywhere from three months to twenty years.
Does Fidelity offer competitive CD rates? Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options.Fidelity is a good choice for CDs, as its interest rates are much higher than the national average. Fidelity CDs are not a good choice if compounding interest is important to your savings strategy, though, as these are brokered CDs that offer only simple interest.
Do Fidelity CDs typically have fees? Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options.It depends on the CD. If you're purchasing or selling a CD on the secondary market, there may be a $1 trading fee for CDs.
Are Fidelity CDs FDIC-insured? Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options.Fidelity CDs are insured by the FDIC. All Fidelity CDs are bought through FDIC-insured banking institutions, so consumers are protected on up to $250,000 in deposits at each individual bank.
Do I need a Fidelity account to invest in CDs? Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options.Yes, you must have a Fidelity brokerage account to invest in CDs. Brokered CDs are specifically for brokerage customers.
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