What is the difference between a whole CD and a fractional CD?

Whole vs. fractional CDs: Fidelity CDs can only be bought in increments and it defines a whole CD as having a $1,000 increment. A fractional CD has a minimum increment and minimum deposit of $100. One caveat if you’re going for smaller increments or minimums: Fidelity states that higher yields may be available on whole CDs.

What is a fractional CD?

A fractional CD has a minimum increment and minimum deposit of $100. One caveat if you’re going for smaller increments or minimums: Fidelity states that higher yields may be available on whole CDs. The type of CD depends on the issuing bank, which you can see in Fidelity’s marketplace.

What is a fidelity fractional CD?

Recently, Fidelity introduced fractional CDs that allow anyone to participate in buying their first federally insured savings deposit at reduced minimums and increments. Specifically, the Fidelity fractional CD starts at $100 as the minimum investment requirement.