We offer very competitive interest rates, our certificates of deposit (CDs) are FDIC-insured and we have a wide selection of maturity dates and interest payment options. But unlike a bank, at Edward Jones you also get advice and guidance from your personal financial advisor on how CDs fit into your portfolio and your overall financial strategy.
What is a certificate of deposit?
CDs are a way to save money, like a savings account, but usually with a slightly higher interest rate. But unlike a savings account, CDs are a time deposit. This means you can't just withdraw your funds on demand. It's possible, but you'll probably pay a penalty. Otherwise, you have to wait until your CDs mature or "come due." Some brokered CDs may be callable prior to maturity, these can be redeemed prior to maturity by the issuing bank at a stated time frame and at a set call price. Most often, a Callable Brokered CD is called when interest rates are falling, which allows the issuer to stop paying CD holders higher than the prevailing rates. It is important to converse with your Financial Advisor around suitability if you are interested in purchasing a Callable Brokered CD.
Using a CD ladder
You can build a "CD ladder" by buying a series of CDs that mature at different, sequential dates in the future – like one month, three months, six months, nine months and 12 months out. As one CD matures, you can either use that money if you need it or just buy the next rung on your ladder. This strategy can help you earn more interest than a standard savings account, while still supplying you with a stream of cash in case of an emergency. Your local financial advisor can give you more details on our CD laddering strategy.
Benefits of an Edward Jones FDIC-insured CD
- Because we're a broker, we offer CDs from multiple banks so you can diversify your CD holdings.
- CDs are held for safekeeping by Edward Jones but can be sold in the secondary market on any business day.
- Any interest your CDs pay can go straight into your money market or insured bank deposit account at Edward Jones on the same day it's paid. So you start earning interest right away.
Current certificate of deposit rates
Get up-to-date information on current bond, CD and money market rates. Also, find out how Federal Reserve actions are changing the playing field in fixed-income markets in our Quarterly Market Outlook.
Certificate of deposit FAQs