Fidelity CD Rates in May 2024: Compare Top CD Rates

What are the top Fidelity CD rates, and how do they compare to other brokered CDs? In May 2024, Fidelity CD rates today are competitive compared to other brokers. In this article, we recap the highest Fidelity CD rates for this month across callable, non-callable, and fractional CD options.

Fidelity CD Rates

For those new to Fidelity CDs, Fidelity offers brokered certificates of deposit (brokered CDs), distinct from standard bank CDs, as brokered CDs are only accessible to customers with brokerage accounts such as Fidelity. Fidelity does not issue these CDs — they provide both newly issued CDs from different banks and CDs resold by other investors on a secondary market.

The following table displays the top Fidelity CD rates today per maturity term for new issue CDs in Fidelity’s marketplace*:

APYs shown are as of May 3, 2024. Click to expand on mobile.

Fidelity Fractional CD Rates

In addition, here are the Fidelity CD rates for the fractional CDs they offer. These CDs have a minimum investment of $100 instead of $1,000. Fractional CDs are only offered at Fidelity.

APYs shown are as of May 3, 2024. Click to expand on mobile.

*Note: Rates can change. YieldAlley suggests checking Fidelity’s website for the latest information.

Buying CDs on Fidelity

• Fidelity Account Required: You must have a brokerage account with Fidelity to buy and hold Fidelity brokered CDs. These can either be a taxable or individual retirement account (IRA).  
• Fee for buying new-issue CDs: None
• Fee for secondary CDs: Purchases and sales incur a trading fee of $1 per CD, where 1 CD has a par value of $1,000
• Minimum investment per New-Issue CD: $1,000. You can buy more new-issue CDs in increments of $1,000.
• Minimum investment per Fractional CD: $100. You can buy Fidelity Fractional CDs, starting with increments of $100.
• FDIC Insurance: Yes.  Fidelity’s brokered CDs offer FDIC insurance of $250,000 per bank per depositor. As an example, this means you have expanded FDIC coverage if you buy two CDs from two banks for up to $500,000.

You can also check out our step-by-step guide on how to buy CDs on Fidelity.

Fidelity CD Fees and Key Information

Frequency of Interest Payments: It depends. The frequency of interest payments on Fidelity varies depending on the CD. CDs with a maturity of less than 1-year usually pay interest at maturity. 1-year CDs usually also pay interest at maturity, while some may pay interest semiannually. For CDs with longer maturity periods of 18 months or more, interest is typically paid semiannually, quarterly, or monthly. 

Monthly Fees: None. This is common for CDs.

Compounding:  None. Brokered certificates of deposit (CDs) accumulate simple interest, while CDs offered by banks accrue compound interest. With brokered CDs, the interest earned remains constant throughout the duration of the CD, as opposed to increasing with a bank CD.

Early Withdrawal Penalty: None. If you require funds from your CD before its term ends, you must trade it in the secondary market. This transaction may lead to a loss on the CD. 

Auto-Roll: Yes. You can participate in Fidelity’s Auto-Roll Service, which will reinvest your CD when it reaches its maturity date. A different bank may provide a new CD than the one that issued the original CD. Alternatively, you can use a CD ladder to roll over and renew your CDs. 

Fidelity IRA CD: Yes. You can buy brokered CDs in your Fidelity IRA account.

Types of CDs Offered By Fidelity

New Issue CDs: A new issue CD is a type of certificate of deposit issued by a bank or financial institution when a new offering is made available to the public. It often comes with a fixed term and interest rate, allowing investors to earn a return on their investment over a specific period. 

Secondary CDs:  A secondary CD is purchased on the secondary market from an existing owner. This allows investors to acquire a CD before its maturity date.

Callable CDs: A callable CD gives the issuing bank the option to terminate the CD before the end of its maturity date. This means that the bank has the right to “call” or redeem the CD early, usually after a specific period of time. This feature allows the bank to take advantage of lower interest rates.

Non-Callable CDs: A non-callable CD cannot be redeemed by the issuer before its maturity date. This means that once you invest in a non-callable CD, the issuer cannot call it back or return your money until the agreed-upon maturity period, which typically ranges from a few months to several years. This makes non-callable CDs a more secure and predictable investment option. 

Zero-Coupon CDs:  A zero-coupon CD doesn’t pay interest throughout its term but is sold at a discounted price. You buy the initial CD at a discount and receive the full value at maturity.

Step-up CDs: A step-up CD offers an increasing interest rate over its term. The increments and frequency of rate increases vary depending on the terms of the CD. These are usually callable.

Fractional CDs:  Fidelity offers fractional CDs which can be bought with a minimum investment of $100. is a type of certificate of deposit that is divided into smaller, tradable units. Each unit represents a fraction of the total amount, allowing investors to purchase and sell partial shares of the CD. This allows for more flexibility and liquidity compared to traditional CDs, as investors can access their funds before the maturity date by selling their fractional shares. 

Why is My Fidelity CD Losing Money?

It may appear that your CD is losing money because a brokered CD is a tradeable security that can be traded on the secondary market. If a brokered CD is held to maturity, you will receive your original principal plus a guaranteed amount of interest. However, if you sell your CD before maturity on the secondary market, the value you sell at could be lower than what you bought it for due to the market conditions, including the interest rate environment.

You should ignore any fluctuation in the CD value if you plan on holding your CD to maturity.

Fidelity Cash Equivalents and Other Offerings

Cash equivalents are “as good as cash” investments regarding their liquidity and reliability. They are short-term, highly liquid investments readily convertible to known amounts of cash and usually considered virtually risk-free. These are typically investments with a short maturity period of 90 days or less.

Some examples include the CDs mentioned here and Treasury bills, which both pay competitive rates but differ in terms of liquidity. Fidelity also offers a selection of money market funds (including some very popular government money market funds), which Fidelity treats as cash. As a full-service brokerage firm, Fidelity offers a wide variety of these products.

I’ve Reviewed the Fidelity CD Rates. Are These CDs Right for Me?

After checking the Fidelity CD rates, you should consider whether these CDs are an appropriate match for you.

What are some factors that may be relevant for you?

20-30 years of age: At this age, individuals are typically in the early stages of their careers and may have a higher risk tolerance. These individuals might focus more on growth investments that can yield higher returns over the long term, such as stocks or mutual funds. However, a CD might be a good option if they are saving for a short-term goal (like a down payment for a house).

30-40 years of age: Individuals in this age group might be balancing multiple financial goals, such as saving for retirement, children’s education, or a home. CDs could be a part of their portfolio for specific short-term goals or as a low-risk component of their overall investment strategy.

40-60 years of age: As individuals approach retirement, they might shift their portfolios towards more conservative investments to preserve capital. CDs can be a good choice for this, especially if interest rates are favorable as they are today.

60+: For retirees or those nearing retirement, CDs can provide a steady income stream and preserve capital. Individuals may also want to consider a Fidelity CD ladder to take advantage of CD rates while having consistent access to cash from maturing CDs.

In a period of volatile interest rates, CDs allow you to lock in a guaranteed amount of return. We also recommend looking at other cash equivalents such as money market funds, which won’t be guaranteed like the Fidelity CD rates but generally offer more flexibility.