Charles Schwab CD Rates: December 2024

Schwab’s brokered CDs come with flexible terms and generous rates of up to 4.50%, making them a suitable option for many depositors. Brokered CDs differ slightly from bank CDs, but they offer both the benefits of FDIC insurance and (typically) higher-than-average rates. Learn more about Schwab CD rates as well as how they compare to other CDs with high interest rates.

Schwab CD Overview
CD Term	Minimum Deposit	APY
3 months	$1,000	Up to 4.32%
6 months	$1,000	Up to 4.24%
9 months	$1,000	Up to 4.17%
12 months	$1,000	Up to 4.40%
18 months	$1,000	Up to 4.40%
24 months	$1,000	Up to 4.50%

Compare Charles Schwab CD Rates

Schwab CDs often have attractive rates, but brokered CDs aren’t for everyone, and it always pays to shop around. Explore more high-yield accounts below before making a decision.

Charles Schwab CDs: Key Features

Schwab CDs are brokered CDs, not bank CDs. Brokered CDs are similar to bank CDs, but they’re purchased through an intermediary (Schwab, in this case) instead of directly from the bank. Buying brokered CDs allows you to invest in CDs from several banks, instead of just one, and you’ll get FDIC insurance up to $250,000 from each bank.

Brokered CDs are generally more flexible than bank CDs, with wider term ranges. They can also be sold on the secondary CD market, which gives investors a way to get their money back (or at least some money back) without paying a withdrawal penalty.

Schwab CD: Key Features
APY Range	Up to 4.50%
Minimum Deposit	$1,000
Term Range	5–18 months
Early Withdrawal Penalty	If you opt to sell before maturity, Schwab will offer you the current market rate for your CD. Depending on market conditions, this could result in a loss or gain.

Minimum deposits for brokered CDs may be higher than what you’d see with certain bank CDs. If you have a small sum of money to deposit, shopping around for CDs with a low minimum deposit requirement is a good strategy.

Pros and Cons of Charles Schwab CDs

Pros

High APYs on short terms
Access to higher FDIC insurance coverage limits
No early withdrawal penalty

Cons

Selling before maturity could result in a loss
Long-term CDs not always available
Minimum deposit is higher compared to some bank CDs

Pros Explained

High APYs on short terms: Many banks and credit unions offer higher rates on longer CD terms, and Charles Schwab's brokered CDs are no exception. However, Charles Schwab CD rates are often high even on the broker's shortest terms, which can be helpful if you can't afford to lock in funds for a year or longer.
Access to higher FDIC insurance coverage limits: Schwab offers brokered CDs from multiple banks, so if you have more than $250,000 to save, you can buy multiple CDs and take advantage of a separate FDIC coverage limit for each account.
No early withdrawal penalty: Brokered CDs can be sold on the secondary market before they mature, and there's no early withdrawal penalty.

Cons Explained

Selling before maturity could result in a loss: While there's no penalty for selling your brokered CD before it matures, the price you'll get depends on market conditions, and you may not get your original investment back.
Long-term CDs not always available: Schwab doesn’t always offer long CDs. If you want to lock in a high APY for several years, you'll need to look elsewhere. See our picks for the best 2-year CDs, 3-year CDs, and 5-year CDs.
Minimum deposit is higher than some bank CDs: Schwab’s $1,000 minimum for CDs is lower than what some firms require, but it may still be too high for many. Some banks and credit unions, like Capital One, often offer CDs with no minimum deposit requirement.

How to Open a Charles Schwab CD

Open an eligible account: To open a Schwab CD, you first need to open a Schwab account, such as an individual brokerage, joint brokerage, Roth IRA, Traditional IRA, or Rollover IRA account.
Enter your details: Enter your Social Security number or taxpayer identification number, your employer's name and mailing address, your email address, and your mobile phone number.
Fund your account: Schwab requires you to deposit at least $1,000 to open a CD. You can link your new account to an existing checking or savings account to fund the CD.
Review available CDs: Once your account is open, log in to your online portal. Select the "Trade" button, and select "CDs." The platform will list the available CDs, including their rates and terms. When you find one that fits your needs, select it and then select the "Buy" button.
Place order: Enter how much money you want to invest in the CD, which must be in multiples of $1,000, and select the “Place order” button.

Other Schwab Savings Options

While it’s best known for its investment products and services, Charles Schwab also offers banking products like savings accounts, checking accounts, and loans.

Schwab’s brokered CDs come with some impressive rates, making them worth considering if you have an existing account or want to create a new one. Schwab investors can also purchase shares of stock, ETFs, mutual funds, index funds, bonds, and cryptocurrency through their investment accounts.

You can deposit money in a bank CD directly with an online bank, local bank, or credit union. Brokered CDs aren’t available through these channels. Instead, you can invest in a brokered CD through an investment account at a brokerage.

About Charles Schwab

Charles Schwab is a savings and loan holding company. Through its subsidiaries, it also offers wealth management and financial advisory services. As of the end of 2023, Schwab had nearly 35 million client brokerage accounts and nearly 2 million banking accounts.

The company is based in Texas, and it operates over 400 branches and operation centers throughout the country. It also has over 1,200 financial consultants to assist customers.

Schwab is known for its satisfaction guarantee. If you’re unhappy with your investment experience with Schwab, it will refund any eligible fees or commissions related to the issues you experienced.

Overall, Schwab has a strong reputation in the industry. It was established in 1971 and is a leading investment firm in the U.S. Account holders benefit from 24/7 customer service via live chat and accessible phone support. If you’re looking for the convenience of all-in-one banking and investing, Schwab may provide exactly what you need.

Alternatives to Charles Schwab CDs

A brokered CD from Charles Schwab may or may not be a good fit for you. Here are some alternatives to consider.

Other CDs: Some banks offer CDs with longer terms than Schwab CDs or with no minimum deposit requirement. See the best CD rates available today to explore your other CD options.
High-yield savings: The interest rates with savings accounts usually aren't as high as CDs, and they can change at any time. But savings accounts offer more liquidity. Consider the top high-yield savings accounts for more returns.
Money market accounts: Like with savings accounts, money market accounts may offer lower rates but you will have easier access to your funds.
I bonds: If your goal of saving money is to make up for inflation, I Bonds offered by the U.S. government are specifically designed to accomplish that objective. However, current rates may be better or worse than CD rates.
U.S. Treasuries: U.S. Treasury bills, known as T-bills, are often considered to be risk-free because they're fully backed by the U.S. government. Terms are for one year or less.

I Bonds don't allow withdrawals within the first 12 months, even with a penalty.

Schwab CDs vs. Edward Jones CDs

Both Charles Schwab and Edward Jones offer brokered CDs, which are investments purchased through a securities account. You don't earn interest until the settlement date of the trade.

Schwab may have higher rates than Edward Jones for some terms, but it has fewer CD term options. The maximum term for Schwab is 24 months, while Edward Jones has CDs with terms as long as 60 months.

	Charles Schwab	Edward Jones
Minimum Deposit	$1,000	$1,000
3 Months	4.32%	4.35%
6 Months	4.24%	4.20%
9 Months	4.17%	4.10%
12 Months	4.40%	4.10%
18 Months	4.40%	4.10%
24 Months	4.50%	4.00%
36 Months	N/A	4.00%
48 Months	N/A	3.90%

Frequently Asked Questions (FAQs)

Does Charles Schwab Offer CD Accounts?

Yes, Schwab offers brokered CDs to its customers. You can open a CD with a minimum of $1,000 (or higher amounts in increments of $1,000) and choose a term from 3 to 24 months.

Are Schwab CDs Brokered?

Yes, Schwab CDs are brokered CDs. At the time of publication, the company did not offer bank CDs. You can invest in brokered CDs from multiple banks through Schwab, and sell them on the secondary market if you decide not to wait for them to mature.

Can You Withdraw Your Money Early From a Schwab CD Account?

It’s possible to withdraw your money early from a Schwab CD account, but doing so may result in a loss. If you’d like to withdraw your funds ahead of maturity, Schwab will sell your brokered CDs at the current market rate (which includes a transaction fee). If the current market rate is lower than your initial rate, you will likely take a loss. But if the current market rate is higher, it may result in a gain.

What Is the Minimum Deposit for a Schwab CD Account?

The minimum deposit for a Schwab CD account is $1,000. Schwab doesn’t mention a maximum deposit, though its brokered CDs are insured up to $250,000 per bank by the FDIC, which is important to keep in mind when you invest.

Are Schwab CDs FDIC-Insured?

Yes, Schwab CDs have FDIC insurance. Its brokered CDs are insured up to $250,000 per bank, which means if you get CDs from multiple banks, each bank will offer its own insurance. If you have more than $250,000 to deposit, splitting up your money this way—by getting multiple brokered CDs through a single brokerage—can be simpler and easier than opening accounts at multiple banks.

Does Schwab Charge Fees on CDs?

When buying a new-issue CD, selling concessions are included in the offering price. If you decide to sell your CD on the secondary market before it matures, there's a transaction fee of $1 per bond, with a $10 minimum and a $250 maximum.

Why Does My Schwab CD Show a Loss?

Brokered CDs, such as Schwab offers, can be resold through the brokerage on the secondary market. If you want to sell your CD before it reaches its maturity date, the available price may be lower than the original price, causing you to lose money.

Are Schwab CDs Callable?

Some Schwab CDs are callable, meaning the CD issuer can redeem or "call" in the CD before its maturity date. The issuer may call the CD early if interest rates drop and it would be advantageous for the issuer to end the CD.

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