Fidelity is a multi-national financial services corporation based out of Boston, Massachusetts. They are one of the top 10 AMC (asset management companies) in the world with $2.46 trillion in assets under management and a combined customer asset value of $6.7 trillion.
Fidelity 5 Year CD Rates. Note that the CDs offered are brokered CD instead bank CDs and can be traded on the secondary market. It is FDIC insured. The rate of 1.80% is 0.41% higher than the average 1.39%. Also it is 0.95% lower than the highest rate. Certificates of Deposit. United Fidelity Bank has a savings plan for all types of savers. Commit your money to increased earnings with a CD. Earn higher interest rates with our CD’s that offer a variety of.
Fidelity offers a wide range of services, products and tools to suit investors of varying experience levels and risk tolerances.
In this review we will focus on the brokered CDs offered through Fidelity. These can be found under their fixed income and bonds category.
It is important to note that Fidelity is not a bank, but a brokerage firm. Therefore Fidelity does not issue any certificates of deposit themselves, but rather “brokers” or resells them to their clients. The deposits are still obligations of the issuing bank, and thus come with FDIC-insurance up to $250,000 per depositor. That said, because Fidelity is a brokerage service, you can hold multiple CDs in your brokerage account with them, effectively expanding your FDIC coverage past the $250,000 limit. This is also true for their cash management account which allows for FDIC coverage up to $1.25 million.
You can open new issue CDs and/or secondary market CDs through Fidelity. New issue CDs are typically sold at par and clients do not pay a trading fee to purchase them. Purchases (and sales) of secondary CDs incur a trading fee of $1 per CD (1 CD = $1,000 par value). Download Fidelity’s CD disclosure document for a full understanding of their terms and conditions.
Fidelity offers seven standard term CDs ranging from 3 months to 5 years that come with a minimum deposit requirement of $1,000.
To give Fidelity’s certificate of deposit rates some context, the current national average for a 12 month CD and 5 year CD sit at just 0.14% and 0.31% APY, respectively. And the best rates on 12 month and 5 year CDs from online banks and nationally available credit unions still top 1.00% APY (albeit just barely).
How is Interest Calculated?
Interest on new issue Fidelity CDs do not compound. This is true with most brokered CDs as they require an immediate distribution of interest.
Fidelity CDs that are purchased on the secondary market may be based on other interest rate calculations. You will need to contact the Firm with questions concerning the interest rate calculation on a secondary market CD.
Fidelity Auto Roll Program
Fidelity also has an “Auto Roll Program” that comes with some helpful features. The most notable being the ability to make early withdrawals on your CD without incurring steep fees. This is in contrast to bank or credit union CDs which generally take a portion of your interest as a fine.
The second stand-out feature of the Auto Roll Program is that it allows you to sell part of your CD (or add to it) prior to its maturity date.
You can also keep track of your earnings, set up alerts and auto-renew your CDs based on your chosen asset allocation.
If you would not like to be a part of the Auto Roll Program, you may cancel at any time.
Brokered CDs offered through Fidelity come with some benefits and downsides. For starters, the current rates offered (shown above) are less competitive than those found at top online banks and credit unions.
Second, while new CDs don’t come with any fees, CDs purchased on the secondary market will be subject to a trading fee similar to buying or selling a stock.
Fidelity’s brokered CDs also come with some distinct advantages.
Fidelity Money Market Rates
The biggest being liquidity. If you need your funds prior to maturity you can simply sell it during any trading day on the open market. Keep in mind though that the market prices will fluctuate based on rates. This means it’s also possible to sell your deposit for less (or more) than you purchased it for.
For example, if you open a 5 year deposit and need the funds after year 2, during which time interest rates have risen considerably, you may have a tough time selling your deposit for your full purchase price because consumers can get better rates through new issue CDs.
Conversely, if you purchase a 5 year deposit and rates drop significantly (which they have) then you may find investors willing to offer a premium on your CD in the secondary market.
- 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.
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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.
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% |
Fidelity Interest Rate
Should You Get a Fidelity CD Account?
Fidelity Cd Rates Ira
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.