If you are going/thinking of investing in a Certificate of Deposit (CD), it would be a wise and highly secure way to help you in growing your savings. 

In this regard, Fidelity Investments is one of the highly renowned financial services corporations. It tends to facilitate you with a wide range of services of CDs. It caters to various investment horizons and risk tolerances. 

With competitive rates, Fidelity CDs are designed to provide investors with a reliable and predictable return on their investment. Let’s explore each aspect in the detail below;

Fidelity CD Rates Offers 

some of the most considerable and highly reliable CD options are;

12-Month High-Yield CD

  • Term Length: 12 months
  • APY: 4.75%
  • Minimum Deposit: $2,500
  • Interest Compounded: Daily
  • Key Considerations:
    • Ideal for short-term savings goals.
    • Higher APY compared to regular savings accounts.
    • Penalty for early withdrawal may apply.
Higher APY than regular savings accountsPenalty for early withdrawal may apply
Ideal for short-term investment goalsLimited potential for higher returns compared to longer-term CDs or riskier investments

 24-Month Premium CD

  • Term Length: 24 months
  • APY: 5.00%
  • Minimum Deposit: $2,500
  • Interest Compounded: Daily
  • Key Considerations:
    • Suitable for medium-term financial planning.
    • Offers a higher interest rate for a longer commitment.
    • Early withdrawal penalties could affect the principal amount.
Higher interest rate for a longer commitmentEarly withdrawal penalties could affect principal

 5-Year Long-Term Growth CD

  • Term Length: 5 years
  • APY: 5.25%
  • Minimum Deposit: $2,500
  • Interest Compounded: Daily
  • Key Considerations:
    • Best for long-term investments and maximizing interest earnings.
    • Provides a stable and predictable return.
    • Significant penalty for early withdrawal, making it less flexible than shorter-term CDs.
Best for maximizing interest earnings over the long termSignificant penalty for early withdrawal, impacting flexibility
Provides a stable and predictable returnLocked-in rate may be disadvantageous in a rapidly increasing rate environment

Collective Comparison CD Rates in Table

For a collective comparison, the following factors will help you a lot. The table gives you an easier assessment of which CDs so that you can choose the one that might best suit you.

Feature / CD Offer12-Month High-Yield CD24-Month Premium CD5-Year Long-Term Growth CD
Term Length12 months24 months5 years
Minimum Deposit$2,500$2,500$2,500
Interest CompoundedDailyDailyDaily
Pros– Higher APY than savings accounts- Ideal for short-term goals- Daily compounding– Higher rate for longer commitment- Suitable for medium-term planning- Daily compounding– Maximizes interest earnings- Stable, predictable return- Daily compounding

Are Fidelity CD Rates Competitive?

Fidelity CD rates are generally competitive. It is specially designed and elaborated in the context of the broader financial market.

The CDs tend to offer higher yields as compared to other traditional savings accounts. It makes them an attractive option for investors who require reliable returns without the volatility of the stock market. 

Moreover, the corporation can provide a variety of terms and rates. These rates allow the investors to select suitable options that align closely with their financial goals and timelines. 

How do Fidelity CD Rates Compare?

When compared to other financial institutions, Fidelity CD rates hold up quite a significant position. It further enhanced the average rates that are offered by banks and other credit unions. 

This competitiveness is part of Fidelity’s strategy. This strategy is mainly concerned with attracting a wide range of investors. The investors precisely range from those looking for short-term investment vehicles to those who are planning for longer-term financial security. 

The diversity in their CDs is a true example that explains that fidelity can cater to a broad audience. It ultimately ensures that most investors can find a CD that fits their risk tolerance and investment horizon.

How Much You Can Earn With Fidelity CD Rates?

To understand the overall perspective earnings from the CDs of Fidelity, here we are providing a basic overview that mainly elaborates on the scenario of approximate earnings for the CDs at Fidelity Investment.

In general, CDs are time-bound deposit accounts. It typically offers higher interest rates than regular savings accounts. This is mainly done in the scenario with an exchange for locking in your funds for a predetermined period. 

CD OfferInvestment AmountTermAPYEarnings (Approx.)
12-Month High-Yield CD$10,0001 year4.75%$475
24-Month Premium CD$10,0002 years5.00%$1,025
5-Year Long-Term Growth CD$10,0005 years5.25%$2,938

 Overview of Fidelity

Fidelity Investments is a multinational financial services corporation. It was founded in 1946. Throughout its history, from the time of its foundation, the bank has been known to be one of the largest and oldest financial institutions in the world.

It overall manages a vast array of assets, including;

  • Mutual funds
  • Pension funds
  • Other financial products for millions of individual investors, financial advisors, and institutional clients.

It has its central headquarters in Boston, Massachusetts. Apart from all the services, Fidelity boasts a global presence. It is known to be operated in multiple countries and offers its clients access to thousands of investment options.

This is one of the most reliable firms and is credibly known because of its;

  • Customer-centric approach
  • Innovative financial solutions
  • Robust online platform

It tends to provide easy access to accounts, market research, and investment tools.

On a broader scale, the bank does not have any traditional bank branches or ATMs, it mainly focuses on investment and wealth management services, and serving clients through online platforms.

Locations of Fidelity Bank

Fidelity Bank has a wide presence in Nigeria, it offers a wide range of banking services across numerous branches throughout the country.

In the United States, a bank by the name of Fidelity Bank operates in several states, providing community banking services with a network of branches.

Frequently Asked Questions

Can I open a CD account online with Fidelity?

Yes, you can effectively open a CD account online with Fidelity through their investment platform. It further operates a straightforward and convenient process.

Are Fidelity CD rates fixed or variable?

Fidelity CD rates are typically fixed. In simple meaning the interest rate remains constant throughout the chosen term of the CD.

What is the minimum deposit for a Fidelity CD?

The minimum deposit for a Fidelity CD is usually around $2,500 but on average is the same as the CD term. The deposit can vary depending on the specific CD product.

Can I access my money before the CD matures?

Yes, it is possible. However, withdrawing funds from a CD before its maturity date applies the early withdrawal penalties that will affect the interest earned.