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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
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 4.60% 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 | 4.20% |
| 6 months | 4.15% |
| 9 months | 4.20% |
| 1 year | 4.30% |
| 18 months | 4.35% |
| 2 years | 4.40% |
| 3 years | 4.45% |
| 4 years | 4.50% |
| 5 years | 4.50% |
| 10 years | 4.60% |
| 20 years | N/A |
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
Fidelity CDs vs. Synchrony Bank CDs
Synchrony Bank CD rates are 0.25% to 4.25% 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 3.50% to 4.00% 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, security, miscellaneous features, mobile app quality, and customer service.
We assign each category a rating between 0 and 5, and star ratings can be anywhere from one to five stars.
We use a weighted average to get our star rating, which means we weigh certain features, like interest rates and fees, at a higher weight percentage than others. We understand that these areas can more heavily impact a person's overall banking experience.
Fidelity CD Rates FAQs
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.
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.
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.
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.
Yes, you must have a Fidelity brokerage account to invest in CDs. Brokered CDs are specifically for brokerage customers.
Editorial Note: Any opinions, analyses, reviews, or recommendations expressed in this article are the author’s alone, and have not been reviewed, approved, or otherwise endorsed by any card issuer. Read our editorial standards.
Please note: While the offers mentioned above are accurate at the time of publication, they're subject to change at any time and may have changed, or may no longer be available.
**Enrollment required.
*Earn 4.75% APY when you deposit at least $250 per month, earn 3.75% standard APY if minimum isn't met.
**Accounts with $250,000 or less will earn 4.35% APY, accounts with over $250,000 will earn 4.65% APY . Rate are determined by balance tiers and amount deposited.
***SoFi members with Direct Deposit or $5,000 or more in Qualifying Deposits during the 30-Day Evaluation Period can earn 4.00% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. There is no minimum Direct Deposit amount required to qualify for the stated interest rate. Members without either Direct Deposit or Qualifying Deposits, during the 30-Day Evaluation Period will earn 1.20% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Only SoFi members with direct deposit are eligible for other SoFi Plus benefits. Interest rates are variable and subject to change at any time. These rates are current as of 12/3/24. There is no minimum balance requirement. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet.
