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Fidelity sells brokered CDs, which work similarly to regular CDs but differ in how they're opened, closed and insured. Customers can choose from nine terms for new CDs and six terms for fractional CDs or purchase CDs sold by other investors through Fidelity's secondary market. New CDs require a minimum deposit of $100 or $1,000.
The Fidelity Certificates of Deposits are competitive with top banks. New issue CD rates are listed below. Secondary CD rates, terms and minimum deposit requirements vary depending on availability and market conditions. Rates are accurate as of Sept. 5, 2023.
Fidelity issues brokered CDs, which are investment products rather than deposit accounts. These CDs are sold by traditional banks to brokerage firms before being sold to investors.
New-issue Fidelity CDs are available in terms ranging from three months to five years, with a minimum opening deposit requirement of $1,000 for most CDs. Fidelity offers some new-issue fractional CDs with minimum opening deposit requirements of $100 and terms ranging from three to 24 months.
Secondary CDs are sold by other investors on Fidelity's secondary market and may be priced at, below or above face value. Minimums and term lengths vary.
Fidelity does not permit early withdrawal, but you can try to sell your CD on the secondary market. There is no guarantee it will sell, and there's a chance you will receive less than the expected value, but you might also profit depending on the rate environment and market conditions. Fidelity will also mark the price of your CD down when listing it for sale and charge a $1 trading fee.
Fidelity CD interest is paid monthly, quarterly, semi-annually or at maturity according to the terms of the issuing bank. Brokered CDs earn simple interest rather than compound interest.
Fidelity CD deposits are sold in increments and held with multiple insured institutions rather than just one, which allows the brokerage to offer FDIC coverage beyond the permitted $250,000 limit. Because FDIC coverage is assessed per depositor, per issuer, each participating bank offers coverage up to the maximum -- which means higher limits for individual consumers. Only the principal and accrued interest are eligible for FDIC insurance, so any premium paid above face value is not covered.
The rate you'll earn on your Fidelity CD depends on several factors, including your term length and the amount you deposit. Brokered CDs do not earn compound interest automatically since interest earnings are credited directly to your brokerage account, so you would need to move earnings to another certificate yourself if you want them to compound.
Use the CD calculator below to estimate your return. Actual earnings may differ.
Fidelity's CD rates are competitive when compared to the best CD rates currently available and much higher than the national average rates for CDs. Still, you might be able to earn a more favorable APY on the term you need with another institution. Research your options carefully before deciding.
As brokered CDs, Fidelity CDs offer additional benefits that might make them the better choice for you, such as the ability to sell them early. Fidelity might also be a good fit for those interested in browsing secondary CDs and those looking to deposit as little as $100. However, opening a brokered CD can be more involved than opening a bank CD, as you'll need to have a brokerage account.
Fidelity Investments is a brokerage firm offering a wide variety of products and services, from investment accounts to advisory services. Fidelity serves over 43 million investors and has around $11.7 trillion in assets under management. The firm operates over 200 Investor Centers across the U.S.
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