Certificates of deposit (CDs)

We know you can buy certificates of deposit (CDs) at your local bank, but Edward Jones offers another option to consider.

A pen writing in the dollar amount on a check.

The CDs we offer provide very competitive interest rates, are FDIC-insured and have a wide selection of maturity dates and interest payment options. In addition, 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.

Edward Jones is not a bank or FDIC-insured institution, and deposit insurance only covers the failure of an insured bank. FDIC insurance for brokered CDs offered by Edward Jones is provided by the FDIC-insured banks that issue the CDs on a "pass-through" basis, which requires certain conditions to be met for coverage to apply. The list of those banks frequently changes. For a list of FDIC-insured banks in our network offering brokered-CDs, see List of Banks for Brokered FDIC-Insured Certificates of Deposit (CDs).

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."

A brokered CD is issued by a bank but purchased through a brokerage firm rather than directly from the bank. Some brokered CDs may be callable prior to maturity, meaning the CD can be redeemed by the issuing bank prior to maturity 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. If you're interested in purchasing callable brokered CDs, it's important to talk with your financial advisor about whether they're suitable for you.

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 potentially earn more consistent returns while helping reduce investment rate risk and providing access to a portion of your money in case of an emergency. Your local financial advisor can give you more details on our CD laddering strategy.

Benefits of purchasing a CD through Edward Jones

  • 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. Find out more about our market views in our Quarterly Market Outlook.

Certificate of deposit FAQs

How we can help

By consolidating your long-term investments and your short-term savings here, your Edward Jones financial advisor can take your whole financial picture into account when making recommendations.

Important information:

Certificates of deposit (CDs) are federally insured up to $250,000 (principal and interest accrued but not yet paid) per depositor, per depository institution for each account ownership category. Edward Jones is not a bank or FDIC-insured institution, and deposit insurance only covers the failure of an insured bank. FDIC insurance for brokered CDs offered by Edward Jones is provided by the FDIC-insured banks that issue the CDs on a "pass-through" basis, which requires certain conditions to be met for coverage to apply. The list of those banks frequently changes. For a list of banks in our network offering brokered CDs, see List of Banks for Brokered FDIC-Insured Certificates of Deposit (CDs). Please visit fdic.gov or contact your financial advisor for additional information. CD values are subject to interest rate risk such that when interest rates rise, the prices of CDs can decrease. If CDs are sold prior to maturity, the investor can lose principal value. FDIC insurance does not cover losses in market value. Please see the Certificate of Deposit Disclosure Statement (PDF) for additional information.