Certificates of deposit

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 are CDs?

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

CDs can play an important role in helping you reach your financial goals. If you're working, you've probably heard that you should have at least six months' worth of living expenses saved up in case of an emergency, like a sudden illness or a job loss. If you're retired, we recommend upping that amount to 12 months' worth. By having an emergency savings fund, you won't have to dip into your retirement accounts or other long-term savings if an unforeseen event strikes.

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 take 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.

Other advantages

  • 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 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 most recent Quarterly Market Outlook.

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.