Certificate of deposit (CD)

We know you can buy certificates of deposit (CDs) at your local bank, but Edward Jones may be an even better option.

 A pen writing in the dollar amount on a check.

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."

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

What are the advantages of a certificate of deposit?

CDs usually come with higher interest rates than savings accounts, making them an attractive investment for investors who want to capture potentially higher interest rates. Also, CDs are considered to be a low-risk investment option.

Do you pay taxes on CDs?

If your CD is in a tax-advantaged account, you will not pay taxes on the income. However, interest on CDs outside of tax-advantaged accounts are taxed as ordinary income in the year interest is earned.

How much money do you need to open up a CD investment?

Opening a CD usually requires at least $1,000, though specifics vary based on the issuer. Edward Jones requires a $1,000 minimum.

Do CDs pay interest monthly or yearly?

CDs make the stated periodic fixed interest payments, which varies by issue, on the face amount. For CDs with maturities less than one year, interest payments are usually made at maturity.

Does Edward Jones offer FDIC-insured CDs?

Yes, all CDs offered by Edward Jones are FDIC-insured, meaning they are FDIC-insured up to a limit of $250,000 principal and interest, per depositor, per account type such as single, joint, IRA.

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 issuing institution. 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.