Fidelity does not issue CDs itself. It sells brokered CDs, which are CDs issued by banks and sold through its brokerage platform. Rates depend on the issuing bank and the term and change as new issues come out, and Fidelity’s CD search requires a login, so this page does not list APYs. Log in to Fidelity’s CD marketplace to see current offerings.
How Fidelity’s CD Marketplace Works
Per Fidelity’s CD page:
- Issued by banks, sold through Fidelity — the deposits are obligations of the issuing bank, not Fidelity, so FDIC insurance applies at the issuing bank.
- Insurance limit — Fidelity says both bank CDs and brokered CDs are FDIC-insured up to $250,000 per account owner, per issuer, and that buying from different issuing banks can expand your protection beyond $250,000 in a single account registration type, such as an individual account or an IRA.
- New issue vs. secondary — a new-issue CD can be traded on the secondary market, so it does not have to be held to maturity. Fidelity says investors do not pay a trading fee to buy new-issue CDs, and that secondary-market purchases and sales cost $1 per CD (1 CD = $1,000 par value).
- Price risk — secondary CDs may be priced at, above or below par, so your overall return may be higher or lower than at maturity. Selling before maturity is how you exit a brokered CD, rather than paying a bank’s early withdrawal penalty.
- Interest — Fidelity says brokered CDs pay simple interest, deposited into your cash core account. For new-issue CDs, the interest rate shown equals the APY. Brokered CDs come with a variety of coupon payment frequencies.
- Minimums — Fidelity says some new-issue CDs are Fractional CDs that can be bought in minimums and increments of $100. Check each CD’s listing for its minimum.
- Callable CDs — some CDs are callable, meaning the issuer can redeem them on a set date before maturity. That can leave you reinvesting at a lower rate.
Fidelity Brokered CD vs. Direct Bank CD
| Feature | Fidelity Brokered CD | Direct Bank CD |
|---|---|---|
| FDIC coverage | At the issuing bank, up to $250K per owner, per issuer | At that bank, up to $250K per depositor, per category |
| Early exit | Sell on the secondary market (price risk) | Fixed early withdrawal penalty |
| Multiple banks in one account | Yes | No (one account, one bank) |
| Where to open | Fidelity account | The bank’s own website |
For rates on direct bank CDs we read ourselves, see best CD rates. Compare the rate on a Fidelity listing against those for the same term, remembering the price risk on a sale before maturity.
How to Buy a CD at Fidelity
- Log in to your Fidelity account, or open one.
- Find the CD search under Fixed Income, Bonds & CDs.
- Check each listing for the issuing bank, rate, maturity date and whether it is callable.
- Purchase and track the maturity date. Fidelity describes an Auto Roll Program for new-issue CDs that can reinvest maturing principal.
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