Fractional Certificates of Deposit (CDs)

CDs are federally insured savings deposits held for a specified time period that offer interest rates typically higher than a savings account to help you reach your goals


FDIC insurance1 provides peace of mind


Minimum investment at Fidelity starts at $100


Wide selection of time periods


Lock in your rate for the entire time you own the CD

Save on your terms

Choose a time period based on when you'll need the money—from as little as 3 months and up to 2 years. If you withdraw early, it's likely you won't receive your full investment back.


View all CDs

Locked-in rates
Fractional CDs, like other brokered CDs, offer a fixed interest rate for the duration of your investment. If you hold it the entire time, you’ll get your original investment back plus interest.


Customize your timeline
Fractional CDs provide added flexibility and choice with investment minimums as low as $100 and investment periods as short as 3 months. You can create a customized CD portfolio based on your personal situation. Invest what you can and have it available when you need it.


Access to your money
Any money you invest in a CD is yours. However, CDs are designed to be held for the entire investment period (until the maturity date). If you end up needing your money before the CD's investment period is complete, you'll have to contact Fidelity to attempt to sell. Due to the limited nature of the market, we can't guarantee that we'll be able to sell your CD and you may lose some of your original investment to trading costs if you do. That's why we suggest carefully picking an investment period you're comfortable sticking with for the entire time.

Price fluctuations
While the price of a brokered CD can vary from day to day (which you see on your positions page), this does not affect the interest you earn. If you hold your CD for the entire investment period, you’ll receive the full amount of your initial investment plus interest payments.


Easy to buy, costly to sell early
There's no cost if you purchase your CD and hold it for the entire investment period. This is the way to earn the yield you saw when you purchased it. Because fractional CDs are a unique product, if you need to sell your investment, Fidelity may attempt to buy it back from you; however, there is no guarantee that this will happen. You should be aware that selling any CD, including fractional, before the maturity date is likely to result in a loss.


FDIC insurance limits1
Although your brokered CD is FDIC insured, the protection is limited to $250,000 per individual per issuer, should the issuer default. So any deposits you have at one bank (even held in other accounts), will be combined for the purposes of determining the FDIC insurance protection limit.

FAQs

  • What is a Fractional CD?

    A certificate of deposit, or CD, is a federally insured savings deposit that offers a fixed interest rate based on the assumption that you will hold your money in that CD until its maturity date. Typically, CDs require a minimum deposit of $1000 and are available in multiples of $1000, but with Fidelity's Fractional CDs, we allow you to purchase CDs at lower minimums and increments, as little as $100.

    Unlike traditional savings accounts that let you deposit and withdraw funds freely, CDs "lock" your money for a specific time period. Typically, the longer the investment period, the higher the interest rate you'll earn. Your money is not freely accessible to you during that time. If you need access to your money early, you will have to sell the CD on the secondary market, which will likely result in a loss of some of your original investment.

  • How do I get started?

    Saving with a CD at Fidelity requires an account to purchase and hold your CDs while they mature. Purchasing CDs is supported through any Fidelity brokerage account. Once your account is set up, the $100 minimum allows you to customize your savings by saving a little bit each month, or by buying CDs with different investment periods to make sure your money is available when you need it.

  • Are CDs FDIC insured?1

    Yes! All the Brokered CDs offered by Fidelity are FDIC-insured up to $250,000 per account owner, per institution. Fidelity offers many CDs from hundreds of different banks, each of which provides for FDIC protection up to current FDIC limits. By combining a number of these CDs in your Fidelity account, you're able to expand your protection.

  • What if I need to access my money early?

    While you can sell your Fractional CD before its maturity date, the process is manual (you have to call us at 800-544-5372) and you'll likely lose part of your original savings, due to trading costs, similar to an early withdrawal fee. Additionally, you will be required to sell the entire fractional amount that you purchased. For example, if your original investment amount was $900, you will need to sell the entire $900 position; it is not possible to break a fractional CD further into a separate smaller amount. That's why it's important to carefully choose a CD you can commit to for the entire investment period and simply let it mature. If you must sell early, it can take a few business days to access your money. But, if you hold your CD for the entire time,, your investment, plus the final interest payment, will be automatically paid into your account.

  • Why wouldn't I just choose the CD with the highest yield/rate?

    When you look at the CDs that Fidelity offers, you'll see a range of different rates. Typically, higher rates come with longer investment periods but rates may also vary within the same period as banks compete for deposits. As an investor you need to consider your time horizon first and foremost—how long you're prepared to leave your money invested. Having decided your time horizon, then look for the best rate available within that timeframe. Other factors to consider include:

    1. The $250,000 FDIC insurance limit
    2. Is the CD callable / not call-protected? If your CD is not call protected there is a risk that the bank returns your investment early and you won’t get the total interest you were expecting. All Fidelity Fractional CDs are call protected, but this is something to keep in mind when looking at our entire CD inventory.