Fidelity CD Rates are very competitive. How much interest you can earn depends on the term lengths and deposits. One thing for sure is that the longer the term, the more money you’ll make over time.
Of note, if you’re looking to earn more money on your investment, it might make sense to consider Vanguard mutual funds.
See the best Fidelity CD rates that are available for you below:
|Fidelity Brokered CD||Minimum Deposit||APY Rate|
Fidelity CD rates: an overview
Fidelity CD rates are the best and among the most competitive out there. They offer higher rates than most Bank CDs.
And you will certainly earn considerably more interest than a regular savings account or money market fund.
While Fidelity CDs offer a higher rate, it requires a much bigger deposit (a minimum of $1,000).
If you can afford that hefty deposit, then keep reading.
One thing you must know is that Fidelity offers brokered CDs. That is one of the reasons its rates are higher than Bank CDs.
What is a certificate of deposit (CD)?
CDs are certificates that banks or credit unions sell to you. Banks issue them to you for a specific dollar amount for a specific length of time.
The time period could be anywhere from 1, 6, 12 or 24 months to several years.
The bank pays you some interest. You get your full principal back plus interest you earn once the CD matures or “comes due.” If you want your money back before it matures, you can withdraw it.
But you will get hit with a penalty for early withdrawal. However, there are some banks, like CIT Bank, that offer CDs with no penalty.
Certificate of deposits just like bank savings accounts are very safe. That is because they are FDIC insured for up to $250,000.
So, if you’re looking for safety for your cash and competitive yield, CDs are some of the best short term investments to consider.
What is the difference between a bank CD and a brokerage CD?
Two types of certificates of deposits exist. One is Bank CD; the other is brokered CD.
Fidelity issues “brokered CDs”. Banks offer “bank CDs.” Brokered CDs are issued by banks. They are sold in bulk through brokerage firms such as Vanguard and Fidelity.
Just like Bank CDs, brokered CDs are FDIC insured up to $250,000.
Even though Fidelity CD rates are usually competitive and among the best, Fidelity brokered CDs don’t always provide higher yields than bank CDs.
But longer term brokered CDs such as the Fidelity 10-year CD offer high rates.
Are Fidelity CDs right for you?
Given that Fidelity CD rates are very competitive, they may be a good choice for you.
So, you may want to consider them if:
- You’re investing for a short-term goal, such as buying a house, in the next few years.
- You are looking for peace of mind knowing that your money is insured by the FDIC.
- You’re looking for an investment that provide higher yields than banks savings accounts;
- You want a low-risk place to keep your cash.
What are the Fidelity CD rates?
Fidelity offers brokered CDs ranging from 1 month to 10 years. As you can see, the longer the term of the CD, the higher the rate. For example, a Fidelity CD for a 7-year term offers a 1.50% yield.
Whereas a Fidelity CD’s rate for a 1-year term is only 1.20%. You can buy Fidelity CDs commission free and you can sell them commission free before they mature.
Fidelity 5-Year CD Rates
The applicable rate for a 5-Year Fidelity CD is currently 0.45%. And it requires a minimum deposit of $1,000.
This is the longest Fidelity CD term out there. And its interest rate exceeds most CD rates you’d get from banks.
Learn more about this product and apply on Fidelity Group’s secure website.
Fidelity 3-Year CD Rates
This 3-year Fidelity CD also requires a minimum deposit of $1,000. This CD’s yield is a little less than the Fidelity 5-year CD. Nonetheless, it’s still higher than most bank CDs. The yield is currently is 0.25%.
Fidelity 5-Year CD Rates
The applicable yield for a 5-Year Fidelity CD is still very competitive. It’s 1.50% and requires a $10,000 deposit.
Fidelity 2-Year CD Rates
The rate for a 2-Year Fidelity CD is 0.15% and a minimum deposit of $1,000 is required.
Fidelity 1-Year CD Rates
The yield for a 1-Year Fidelity CD is 0.10% and a minimum deposit of $1,000 is required. Compare this with CIT Bank’s 1-Year CD of 1.25% APY.
Fidelity 9-Month CD Rates
The applicable yield for a 9-Month Fidelity CD is still very competitive. It’s 0.10% and requires a $1,000 deposit.
Fidelity 6-Month CD Rates
The yield for a 6-month Fidelity CD is currently 0.10%. Fidelity brokerage CD requires a $1,000 minimum deposit.
Fidelity 3-Month CD Rates
For a 3-Month Fidelity CD, the yield is 0.10%. The minimum deposit is $1,000.
Best Vanguard Mutual Funds: Alternative to Fidelity CDs
If Fidelity CDs do not do it for you, or you’re looking to get more return on your money, then try to invest in the best Vanguard mutual funds out there. That way your money is still safe and you get more money.
Mutual funds are some of the best ways to invest your money. One thing to be aware is that mutual funds invest in stocks and bongs.
These securities tend to be volatile. Therefore, you might lose some or most of your investment if the market goes down. So, beginner investors wishing to invest in these Vanguard Funds should also consider learning how the stock market works.
Fidelity CDs might be a good choice for you if you want to avoid risky investments and you are saving your money for a short-term goal such as going on a vacation.
Indeed, Fidelity CD rates are better than bank savings accounts and money market funds. But the money is only available after the CD “matures.” On the other hand, if access to your money at anytime is a priority, check out the best Vanguard Mutual Funds.
Tips for Maximizing Your Savings
If you have questions beyond Fidelity CD rates, you can talk to a financial advisor who can review your finances and help you reach your goals. Find one who meets your needs with SmartAsset’s free financial advisor matching service. You answer a few questions and they match you with up to three financial advisors in your area. So, if you want help developing a plan to reach your financial goals, get started now.