With a Fidelity fractional CD, an investor can purchase CDs with a minimum of $100. Usually, brokered and traditional CDs will require a minimum deposit of $1000, and are available in multiples of $1000.
As an investor, you would be investing in the same CDs that were previously offered, just with a lower minimum investment. Fidelity does note that higher yields may be available on whole CDs (which are sold in $1000 increments).
Fidelity’s inventory of fractional CDs currently includes brokered CDs with maturities of 3, 6, 9, 12, 18, and 24-month periods. Currently, only call-protected CDs are offered in Fidelity’s Fractional CD program.
Fidelity Fractional CD Rates
Here are the current Fidelity CD rates for their Fractional CD program.
| Fractional CD Term Length | APY |
| 9 months | 5.30% |
| 12 months | 4.90% |
| 18 months | 5.15% |
| 24 months | 4.90% |
Are Fidelity Fractional CDs insured?
Yes. All the brokered CDs offered by Fidelity are FDIC-insured up to $250,000 per account owner, per institution.
How do you purchase a Fractional CD from Fidelity?
Purchasing Fractional CDs at Fidelity involves a few steps.
First, log in to your Fidelity account.
Then, make your way to the CDs & Ladders tab on the Fixed Income, Bonds & CDs page.
On that page, you will see a long table of new-issue CDs (you cannot purchase fractional CDs on the secondary market). There will be a column labeled “Fractional CDs”. Search for any CD with the “Yes” label in the Fractional CD column, and click “Buy” on the left-hand side.
You will be brought to a “Preview Order” page. If you wish to buy the Fractional CD with a lower investment than the $1000 increment, you will have to enter a number of less than 1 in the “Quantity” box.
Here is an example.
1 CD equals a $1,000 face value. You can only buy a Fractional CD for only $100 and in increments of $100. Here are a few examples:
- A quantity of 1 means you are buying 1 CD, or an order value of $1,000
- A quantity of 0.1 means you are buying 0.1 CDs, or an order value of $100
- A quantity of 0.3 means you are buying 0.3 CDs, or an order value of $300
Summary of Understanding a Fidelity Fractional CD
A Fidelity fractional CD is a good introduction for investors who are new to brokered CDs, and would like to take advantage of fixed interest rates at a lower minimum investment. In addition, these fractional Fidelity CDs all offer call protection and are non-callable, in addition to being FDIC insured.
