Charles Schwab offers several certificates of deposit (CDs) with terms ranging from one month to five years. However, the brokerage firm doesn’t publish all of its terms and rates online, and the only way to find out the current rates is to speak with a representative. Based on our research, Charles Schwab’s current CD rates are currently comparable with or higher than top online banks.
Here’s an overview of Charles Schwab CD rates. Rates are accurate as of Feb. 28, 2023.
Overview of Charles Schwab CDs
You must be a Charles Schwab customer to open a brokered CD through the brokerage firm. A $1,000 minimum deposit is required to open a Charles Schwab CD, although higher deposits are allowed in $1,000 increments. Charles Schwab is not a bank but partners with hundreds of U.S. financial institutions to offer CDs that are FDIC-insured up to $250,000 per depositor, per insured bank. These partnerships let you keep CDs at multiple banks and extend insurance coverage beyond traditional limits.
Like other brokerage firms, Charles Schwab doesn’t allow early withdrawals of CD funds. Instead, you may be able to sell your CD on the secondary market if you need access to funds before the end of the CD term. After the initial deposit, account holders can’t deposit additional funds into a Charles Schwab CD account.
The interest earned on most Charles Schwab CDs is deposited into the account holder’s brokerage account. Interest payouts occur monthly, quarterly, semi-annually or at maturity depending on the term length and the issuing bank.
How Much Can You Earn With a Charles Schwab CD?
CDs offer something that most investments don’t: guaranteed returns. With fixed rates and terms, you can calculate exactly how much money you will earn from a CD. Like other brokered CDs, Charles Schwab CDs don’t compound, and earnings are calculated differently than with a standard certificate of deposit.
Use the calculator below to determine how much you can earn with a Charles Schwab brokered CD. Because interest doesn’t compound on brokered CDs regularly like traditional CDs, interest schedule calculations may be slightly different.
How Charles Schwab CDs Stack Up
Charles Schwab CDs offer some of the most competitive rates in the market, outpacing the national average and even some of the top CD rates.
Opening a CD through Charles Schwab requires having a brokerage account with the firm. Its CDs offer a great way to maximize and diversify your savings, but you may find comparable rates elsewhere that don’t require an existing brokerage account to open. Compare CDs at multiple financial institutions to find the highest APYs and terms that match your needs.
About Charles Schwab
Charles Schwab is a full-service wealth management brokerage firm that’s been in business for more than 40 years. The financial services company manages 33.9 million active brokerage accounts and $7.4 trillion in client assets. Charles Schwab ranked No. 1 in the J.D. Power 2022 U.S. Direct Banking Satisfaction Study.
Frequently Asked Questions (FAQs)
Is Charles Schwab FDIC approved?
Charles Schwab is a brokerage firm, not a bank, and isn’t FDIC insured. Instead, the brokerage firm’s CDs are issued by partner banks and are FDIC insured for up to $250,000 per depositor, per depository institution, for each account ownership category.
Which bank owns Charles Schwab?
Charles Schwab is a publicly owned corporation that is not owned by a bank. At one point in its history, Charles Schwab was acquired by Bank of America, but the brokerage’s management later purchased the company back from the banking giant.
What products does Charles Schwab offer?
Charles Schwab offers several investment and banking products and services. Investment options include stocks, bonds, ETFs, mutual funds, options, futures and fractional shares. The investment firm also offers retirement accounts, custodial accounts, cash management services, bank accounts, credit cards and home mortgage loans.
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