Yes, Fidelity offers certificates of deposit through multiple channels

Fidelity offers CDs (certificates of deposit) directly through its brokerage platform and also through a network of partner banks. When you open a CD at Fidelity, you are lending money to a bank for a fixed period — typically three months to five years — in exchange for a set interest rate. Fidelity's own CDs come from partner institutions, not from Fidelity itself, but you manage them all in one account alongside your other investments.

The main advantage of buying CDs through Fidelity rather than directly from a bank is convenience: you see all your holdings in one place, and you can compare rates across multiple banks without visiting each one separately. Fidelity does not charge a fee to buy or sell CDs on its platform. The tradeoff is that Fidelity's rates are sometimes lower than what you would find by shopping directly at online banks, though this varies by term length and market conditions.

Key Takeaways

  • Fidelity CDs are issued by partner banks and FDIC-insured up to $250,000 per bank per depositor, so your money is protected even if the bank fails.
  • You can buy CDs with terms ranging from three months to five years, and rates change daily based on market conditions and the bank offering the CD.
  • Fidelity charges no fee to purchase or hold a CD, but early withdrawal penalties vary by bank and term — typically three to six months of interest.
  • You can view all your CDs in your Fidelity account alongside stocks, bonds, and other holdings, making it easier to track your overall portfolio.
  • Rates on Fidelity CDs may be lower than direct online banks because you are paying for the convenience of one-stop shopping and account integration.

How to find and compare CD rates at Fidelity

To view available CDs, log into your Fidelity account and navigate to the Fixed Income section, then select CDs. You will see a list of current offerings sorted by term length and interest rate. Each listing shows the bank name, the annual percentage yield (APY), the term in months, and the minimum deposit required — usually $1,000 or $2,500.

Fidelity updates its CD offerings throughout the day as rates change. You can filter by term length, minimum deposit, or bank to narrow the list. Click on any CD to see the full details, including the early withdrawal penalty, the maturity date, and whether the CD is callable (meaning the bank can end it early under certain conditions). Most CDs offered through Fidelity are non-callable, but it is worth checking the details before you commit.

Compare the APY across different terms and banks, but also read the fine print on penalties. A CD with a slightly higher rate may cost you more if you need the money early, because the penalty could eat into your earnings. Fidelity's platform makes this comparison easier than calling multiple banks, but you should still check one or two online banks directly if you are looking for the absolute highest rate on a specific term.

FDIC insurance and how your money is protected

Every CD offered through Fidelity is issued by a bank that participates in FDIC (Federal Deposit Insurance Corporation) insurance. This means your deposit is protected up to $250,000 per bank per depositor, even if the bank fails. If you have $100,000 in a CD from Bank A and $100,000 in a CD from Bank B, both are fully covered because they are at different institutions.

If you deposit more than $250,000 at the same bank through Fidelity, only $250,000 is insured. The remainder is not protected. Fidelity does not pool your money or create a separate insurance layer — the FDIC coverage is tied to the underlying bank. This is why Fidelity offers CDs from multiple partner banks: it allows you to spread larger amounts across different institutions and stay within the insurance limit at each one.

You do not need to do anything to set up this insurance. It is automatic. When you buy a CD through Fidelity, the bank that issues it registers your deposit with the FDIC under your name and Social Security number. You can verify your coverage by visiting the FDIC's website and using their insurance calculator.

Early withdrawal penalties and what happens at maturity

If you need to withdraw money from a CD before the maturity date, you will pay an early withdrawal penalty. The penalty amount varies by bank and term length. A three-month CD might have a penalty of one month of interest, while a five-year CD might have a penalty of six months of interest. Some banks charge a flat dollar amount instead. Fidelity shows the penalty for each CD before you buy it, so you know the cost upfront.

When your CD reaches maturity, the bank automatically returns your principal plus accrued interest to your Fidelity account. You then have a choice: reinvest in another CD, move the money to a savings account or money market fund, or use it for something else. Fidelity typically gives you a grace period of seven to ten days to decide what to do with the matured CD. If you do nothing, the money sits in your account as cash.

Some CDs have an automatic renewal feature, meaning the bank will roll the money into a new CD at the current rate if you do not tell them otherwise. Check the CD details to see whether automatic renewal is turned on. If you do not want to renew, you can disable this feature or withdraw the money during the grace period.

Comparing Fidelity CDs to other options

Fidelity CDs are most useful if you already have a Fidelity brokerage account and want to keep everything in one place. If you are comparing rates, online banks like Marcus, Ally, and American Express often offer higher APYs on CDs than Fidelity does, especially on longer terms. The difference can be 0.25% to 0.5% per year, which adds up on larger deposits.

However, if you are buying a CD as part of a broader investment strategy — for example, using it to hold an emergency fund while keeping stocks and bonds in the same account — Fidelity's integration may be worth the slightly lower rate. You also avoid the hassle of managing accounts at multiple institutions.

Money market funds and high-yield savings accounts are alternatives to CDs if you want liquidity. Money market funds held at Fidelity typically offer rates close to CDs but allow you to withdraw money without penalty. High-yield savings accounts at online banks often match or beat CD rates and also have no withdrawal restrictions, though rates can change at any time. A CD locks in your rate for the full term, which is valuable if you think rates will fall.

Tax implications of CD interest

Interest earned on a CD is taxable as ordinary income in the year you earn it, even if you do not withdraw the money until maturity. If you hold a one-year CD that earns $500 in interest, you owe tax on that $500 in the year the interest accrues, not in the year you cash out. Fidelity will send you a 1099-INT form in January showing the interest you earned on all your CDs during the previous year.

If you hold a CD in a tax-advantaged account like a traditional IRA or Roth IRA, the interest is not taxed until you withdraw from the account (or never, in the case of a Roth). This can make CDs in retirement accounts more attractive than CDs in a regular brokerage account, especially if you are in a high tax bracket.

Frequently Asked Questions

Can I sell a CD before it matures without paying a penalty?

No. If you sell a CD on the secondary market before maturity, you may receive less than you paid because CD prices fluctuate with interest rates. This is different from an early withdrawal penalty but has the same effect: you lose money. Holding the CD to maturity is the only way to avoid a loss, unless rates have risen so much that the CD is worth more than you paid.

What is the minimum deposit for a Fidelity CD?

Most CDs offered through Fidelity require a minimum deposit of $1,000 or $2,500, depending on the bank and the term. Some banks may have higher minimums for longer terms. Check the specific CD listing to see the minimum for the one you are interested in.

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

Yes. You must have a Fidelity brokerage account to purchase CDs through Fidelity's platform. Opening an account is free and takes about 10 minutes online. You will need your Social Security number, a valid ID, and a bank account to link for transfers.

What happens if Fidelity goes out of business?

Your CDs are not affected. They are issued by the partner banks, not by Fidelity. Even if Fidelity failed, your CDs would remain valid and insured by the FDIC. Fidelity is a large, established brokerage firm, but this protection exists regardless of Fidelity's financial health.

Can I ladder CDs at Fidelity?

Yes. CD laddering means buying multiple CDs with different maturity dates so that one matures every few months or years. This gives you regular access to portions of your money without paying early withdrawal penalties. Fidelity's platform makes it straightforward to track multiple CDs and see which ones are maturing soon.