Fidelity Cd Rates
Current Rates as of February 28, 2021. CD Specials above are in bold and italics. Other restrictions apply. See bank for details. Annual percentage yield effective November 2, 2020 and subject to change without notice. Penalty for early withdrawal for CDs. Fees may reduce earnings. Increase your savings security with a Fidelity Bank Certificate of Deposit (CD) account. Competitive rates and fixed terms ensure your money is safe and building for a better tomorrow. Compounded, competitive interest rates.
Pros- Extremely competitive rates
- Auto Roll Program allows for early withdrawals
- No monthly fee
- Minimum deposit might be too high for some
- Trading risks and fees
- Those who want to take a more investing-centered approach to CDs
Overview
Fidelity Bank CDs differ from typical bank certificates of deposit in that they are brokered for brokerage firm customers. You can purchase a brokered CD from multiple banks but hold it with Fidelity. This allows you to have a higher amount insured by the FDIC.
Fidelity Brokered CDs have just about the highest rates in the industry, too. They can provide great earnings no matter what you’re saving for. Fidelity Bank doesn’t have the widest range of CD terms, with only seven options available. However, it does make for an easily created CD ladder. You could open every CD account at the same time and benefit from a payout at the end of each.
| Fidelity Brokered CD | Minimum Deposit | Rate |
| 3 Month | $1,000 | 0.05% |
| 6 Month | $1,000 | 0.02% |
| 9 Month | $1,000 | 0.05% |
| 1 Year | $1,000 | 0.05% |
| 2 Year | $1,000 | 0.05% |
| 3 Year | $1,000 | 0.15% |
| 5 Year | $1,000 | 0.45% |
Overview of Fidelity CDs
You can open a brokered CD in two ways. The first is to open it as new issue offerings. This allows you to avoid paying trading fees to purchase new issue offerings. Your second option is to open a brokered CD from the secondary market. You will face trading fees here, though, of $1 per CD. However, you have the perk of being able to access your secondary market brokered CDs before it reaches maturity.
Fidelity also offers its Fidelity Auto Roll Program, which offers a couple of handy perks. For starters, this program automatically renews your CDs according to your chosen asset allocation. It also allows for early withdrawals without incurring heavy penalties. This feature sets it apart from most other bank CDs which charge a penalty for all early withdrawals. The penalty usually negates the perks of an early withdrawal since it charges a portion of interest earned.
Each Fidelity CD also comes with the flexibility to sell part of your funds or add onto them thanks to the Auto Roll Program. Then to keep track of your accounts and earnings, you can set up Fidelity Alerts for periodic alerts. You can cancel the Auto Roll program at any time.
Fidelity Cd Rates Ira
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How Much You Earn With Fidelity Certificate of Deposits Over Time
If you choose to open a Fidelity Brokered CD and not fiddle with it and the market, your money will be growing at some great rates. These rates blow many banks’ regular CD rates out of the water. However, don’t forget that these are still brokered CDs that are connected to the market.
It’s important to note that these amounts reflect your possible final balances at the end of the term. Your exact earnings, however, depend on your initial deposit and how often Fidelity chooses to compound your interest. We’ve calculated the numbers below as though interest is compounded daily.
| Initial Deposit | 3-Month CD | 12-Month CD | 60-Month CD |
| $2,500 | $2,500.62 | $2,501.50 | $2,556.76 |
| $5,000 | $5,001.25 | $5,002.50 | $5,113.52 |
| $10,000 | $10,002.50 | $10,005 | $10,227.03 |
How Fidelity CDs Rates Compare to Other Banks
Don’t forget that Fidelity CDs are different in that they are brokered. That means they can be traded on the market, either with new issue offerings or on the secondary market. Your deposit will still earn according to the given interest rate.
Fidelity Cd Rates At Banks
Competitors like Discover Bank, Ally Bank, and Marcus offer a more standard approach to CDs and bank accounts in general. So if you’re looking to keep all your bank accounts with one institution, Fidelity wouldn’t be the right option.
| CD Account | Fidelity | Discover | Ally Bank | Marcus by Goldman Sachs |
| 6 Month | 0.05% | 0.25% | 0.25% | 0.15% |
| 1 Year | 0.05% | 0.50% | 0.60% | 0.55% |
| 3 Year | 0.15% | 0.55% | 0.65% | 0.55% |
| 5 Year | 0.45% | 0.60% | 0.85% | 0.60% |
Should You Get a Fidelity CD Account?
You should get a Fidelity CD account if you’re comfortable working with brokered CD accounts, rather than a specific bank’s own accounts. This means you do have access to a wider variety of CDs from various locations. You can also sell your CDs on the secondary market if you choose to. However, this also means you can lose money with these CDs according to the market and its rates.
Fidelity CD Rates are very competitive. How much interest you can earn depends on the term lengths and deposits. One thing for sure is that the longer the term, the more money you’ll make over time.
Of note, if you’re looking to earn more money on your investment, it might make sense to consider Vanguard mutual funds.
See the best Fidelity CD rates that are available for you below:
Fidelity CD rates: an overview
Fidelity CD rates are the best and among the most competitive out there. They offer higher rates than most Bank CDs.
And you will certainly earn considerably more interest than a regular savings account or money market fund.
While Fidelity CDs offer a higher rate, it requires a much bigger deposit (a minimum of $1,000).
If you can afford that hefty deposit, then keep reading.
One thing you must know is that Fidelity offers brokered CDs. That is one of the reasons its rates are higher than Bank CDs.
What is a certificate of deposit (CD)?
CDs are certificates that banks or credit unions sell to you. Banks issue them to you for a specific dollar amount for a specific length of time.
The time period could be anywhere from 1, 6, 12 or 24 months to several years.
The bank pays you some interest. You get your full principal back plus interest you earn once the CD matures or “comes due.” If you want your money back before it matures, you can withdraw it.
But you will get hit with a penalty for early withdrawal. However, there are some banks, like CIT Bank, that offer CDs with no penalty.
Certificate of deposits just like bank savings accounts are very safe. That is because they are FDIC insured for up to $250,000.
So, if you’re looking for safety for your cash and competitive yield, CDs are some of the best short term investments to consider.
What is the difference between a bank CD and a brokerage CD?
Two types of certificates of deposits exist. One is Bank CD; the other is brokered CD.
Fidelity issues “brokered CDs”. Banks offer “bank CDs.” Brokered CDs are issued by banks. They are sold in bulk through brokerage firms such as Vanguard and Fidelity.
Just like Bank CDs, brokered CDs are FDIC insured up to $250,000.
Even though Fidelity CD rates are usually competitive and among the best, Fidelity brokered CDs don’t always provide higher yields than bank CDs.
But longer term brokered CDs such as the Fidelity 10-year CD offer high rates.
Are Fidelity CDs right for you?
Given that Fidelity CD rates are very competitive, they may be a good choice for you.
So, you may want to consider them if:
- You’re investing for a short-term goal, such as buying a house, in the next few years.
- You are looking for peace of mind knowing that your money is insured by the FDIC.
- You’re looking for an investment that provide higher yields than banks savings accounts;
- You want a low-risk place to keep your cash.
What are the Fidelity CD rates?
Fidelity offers brokered CDs ranging from 1 month to 10 years. As you can see, the longer the term of the CD, the higher the rate. For example, a Fidelity CD for a 7-year term offers a 1.50% yield.
Whereas a Fidelity CD’s rate for a 1-year term is only 1.20%. You can buy Fidelity CDs commission free and you can sell them commission free before they mature.
Fidelity 5-Year CD Rates
The applicable rate for a 5-Year Fidelity CD is currently 0.45%. And it requires a minimum deposit of $1,000.
This is the longest Fidelity CD term out there. And its interest rate exceeds most CD rates you’d get from banks.
Learn more about this product and apply on Fidelity Group’s secure website.
Fidelity 3-Year CD Rates
This 3-year Fidelity CD also requires a minimum deposit of $1,000. This CD’s yield is a little less than the Fidelity 5-year CD. Nonetheless, it’s still higher than most bank CDs. The yield is currently is 0.25%.
Fidelity 5-Year CD Rates
The applicable yield for a 5-Year Fidelity CD is still very competitive. It’s 1.50% and requires a $10,000 deposit.
Fidelity 2-Year CD Rates
The rate for a 2-Year Fidelity CD is 0.15% and a minimum deposit of $1,000 is required.
Fidelity 1-Year CD Rates
The yield for a 1-Year Fidelity CD is 0.10% and a minimum deposit of $1,000 is required. Compare this with CIT Bank’s 1-Year CD of 1.25% APY.
Fidelity 9-Month CD Rates
The applicable yield for a 9-Month Fidelity CD is still very competitive. It’s 0.10% and requires a $1,000 deposit.
Fidelity 6-Month CD Rates
The yield for a 6-month Fidelity CD is currently 0.10%. Fidelity brokerage CD requires a $1,000 minimum deposit.
Fidelity 3-Month CD Rates
For a 3-Month Fidelity CD, the yield is 0.10%. The minimum deposit is $1,000.
Best Vanguard Mutual Funds: Alternative to Fidelity CDs
If Fidelity CDs do not do it for you, or you’re looking to get more return on your money, then try to invest in the best Vanguard mutual funds out there. That way your money is still safe and you get more money.
Mutual funds are some of the best ways to invest your money. One thing to be aware is that mutual funds invest in stocks and bongs.
These securities tend to be volatile. Therefore, you might lose some or most of your investment if the market goes down. So, beginner investors wishing to invest in these Vanguard Funds should also consider learning how the stock market works.
Bottom line
Fidelity CDs might be a good choice for you if you want to avoid risky investments and you are saving your money for a short-term goal such as going on a vacation.
Indeed, Fidelity CD rates are better than bank savings accounts and money market funds. But the money is only available after the CD “matures.” On the other hand, if access to your money at anytime is a priority, check out the best Vanguard Mutual Funds.
Tips for Maximizing Your Savings
If you have questions beyond Fidelity CD rates, you can talk to a financial advisor who can review your finances and help you reach your goals. Find one who meets your needs with SmartAsset’s free financial advisor matching service. You answer a few questions and they match you with up to three financial advisors in your area. So, if you want help developing a plan to reach your financial goals, get started now.