Yes, Fidelity offers certificates of deposit through its brokerage and banking services

Fidelity offers CDs (certificates of deposit) through two main routes: its brokerage platform and Fidelity Bank. A CD is a savings product where you deposit money for a fixed period — typically three months to five years — and receive a set interest rate. You cannot withdraw the money before the term ends without paying a penalty, which is why CDs pay more interest than regular savings accounts.

Fidelity's brokerage CDs come from partner banks and are listed on the platform so you can compare rates and terms side by side. Fidelity Bank also offers its own CDs directly. The choice between them depends on whether you want to shop multiple banks' rates or stick with one institution.

Key Takeaways

  • Fidelity brokerage lets you search and purchase CDs from multiple banks on one platform, making rate comparison straightforward.
  • Fidelity Bank offers its own CDs with rates that change based on market conditions and the term length you choose.
  • All CDs through Fidelity are FDIC-insured up to $250,000 per depositor per bank, so your principal is protected.
  • Early withdrawal penalties vary by CD and bank, so you should review the terms before committing your money.
  • You can open a CD with as little as $1,000 at most Fidelity offerings, though some products have higher minimums.

How to find and compare CDs through Fidelity brokerage

If you have a Fidelity brokerage account, you can access the CD marketplace by logging in and navigating to the Fixed Income section. The platform displays CDs from multiple FDIC-insured banks, showing the interest rate, term length, and maturity date for each. You can filter by term (three months, six months, one year, and so on) and sort by rate to find the highest-paying option that matches your timeline.

When you select a CD, Fidelity shows you the early withdrawal penalty — usually expressed as a number of months of interest forfeited. For example, a penalty might be three months of interest, meaning if you withdraw early, you lose three months' worth of the rate you locked in. This penalty structure varies by bank and CD term, so compare before you buy.

Once you purchase a CD through the brokerage, Fidelity holds it for you and handles the maturity process. When the term ends, the CD either renews automatically at the current rate or the money returns to your cash account, depending on your settings.

Opening a CD directly with Fidelity Bank

Fidelity Bank is a separate entity from the brokerage and offers its own deposit products. You can open a CD with Fidelity Bank online or by phone without needing a brokerage account. The bank publishes its current CD rates on its website, and rates vary by term length — typically shorter terms pay less and longer terms pay more, though this relationship can shift when interest rates change rapidly.

Fidelity Bank CDs have a minimum deposit of $1,000 for most terms. The bank allows you to set up automatic renewal or manual renewal at maturity. If you choose manual renewal, you have a grace period (usually seven to ten days after maturity) to decide whether to renew, withdraw, or move the money elsewhere.

Fidelity Bank CDs are FDIC-insured, so deposits up to $250,000 are protected. If you have multiple CDs at Fidelity Bank, the insurance limit applies per depositor per bank, not per account, so a $200,000 CD and a $100,000 CD would exceed coverage — the first is fully protected and the second is covered only up to $50,000.

Interest rates and how they compare

Fidelity's CD rates move with the broader interest rate environment. When the Federal Reserve raises rates, new CDs pay more; when rates fall, new CDs pay less. Rates also depend on the term: a one-year CD typically pays less than a five-year CD, because you are locking your money up for longer and the bank is paying you for that commitment.

Fidelity's brokerage platform makes it easy to see how Fidelity Bank's rates compare to other banks' rates on the same day. If Fidelity Bank's one-year CD pays 4.50% and another bank's one-year CD pays 4.75%, you can see that difference immediately and choose based on rate, convenience, or whether you already have accounts at one institution.

Rates change frequently — sometimes daily — so if you see a rate you like, act within the same day. Fidelity publishes current rates on its website and in the brokerage platform, and you can set up rate alerts through some third-party CD tracking sites if you want to monitor Fidelity's offerings over time.

Early withdrawal penalties and what they cost

Every CD has an early withdrawal penalty, and it is the main reason CDs pay more than savings accounts. If you need your money before the term ends, you will lose some or all of the interest you earned. The penalty structure varies: some CDs charge a flat fee, but most charge a number of months of interest.

For example, if you have a $10,000 CD paying 4.50% annually and the penalty is three months of interest, withdrawing after six months costs you roughly $112.50 (three months of $450 annual interest). The longer the term, the larger the penalty is usually expressed in months of interest, because the bank is giving up more future income.

Before you open a CD, read the penalty terms carefully. Some CDs have no-penalty options, though they typically pay a lower rate. Fidelity's brokerage platform displays the penalty for each CD before you purchase, so you can factor it into your decision.

FDIC insurance and account protection

All CDs offered through Fidelity — whether through the brokerage or Fidelity Bank — are FDIC-insured. This means your principal and accrued interest are protected up to $250,000 per depositor per bank. If Fidelity Bank fails, the FDIC will reimburse you up to that limit.

The $250,000 limit applies to your total deposits at that one bank, not per CD. If you have a $150,000 CD and a $100,000 CD both at Fidelity Bank, your total coverage is $250,000, so both are fully protected. If you had $150,000 and $150,000, the first CD is fully covered and the second is covered only up to $100,000.

CDs purchased through Fidelity's brokerage from other banks are insured by those banks' FDIC coverage, not by Fidelity. Fidelity acts as a broker and custodian, but each CD is backed by the issuing bank's insurance. The platform shows you which bank issued each CD so you can track your coverage across institutions if you own multiple CDs.

Frequently Asked Questions

Can I withdraw money from a Fidelity CD before it matures?

Yes, but you will pay an early withdrawal penalty. The penalty is usually a set number of months of interest, which varies by the CD's term and the issuing bank. Some CDs offer no-penalty withdrawal options, though they pay lower rates. Check the specific CD's terms before you purchase to understand what the penalty would cost you.

What is the minimum deposit for a Fidelity CD?

Most Fidelity CDs require a $1,000 minimum deposit. Some CDs through the brokerage or Fidelity Bank may have higher minimums, typically $2,500 or $5,000, depending on the term and issuing bank. The platform shows the minimum for each CD before you open it.

Do I need a Fidelity brokerage account to open a CD?

No. You can open a CD directly with Fidelity Bank online or by phone without a brokerage account. However, if you want to shop CDs from multiple banks through Fidelity's brokerage platform, you will need a brokerage account. Many people have both.

What happens when my CD matures?

At maturity, your CD either renews automatically at the current rate or the money moves to your cash account, depending on how you set it up when you opened the CD. You can change your maturity instructions anytime before the CD matures. If you have a grace period after maturity (usually seven to ten days), you can withdraw or move the money without penalty during that window.

Are Fidelity CDs FDIC-insured?

Yes. All CDs offered through Fidelity are FDIC-insured up to $250,000 per depositor per bank. Your principal and accrued interest are protected if the issuing bank fails. The insurance limit is per bank, not per CD, so if you own multiple CDs at the same bank, the total coverage across all of them is $250,000.