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Edward Jones CD
Annual Percentage Yield (APY)
up to 5.50%
Minimum Deposit Amount
- Ability to get competitive interest rates from different banks
- Variety of term options
- $1,000 minimum deposit
- Doesn’t compound interest
- You may pay up to a 2% commission on your deposit amount, depending on the type of CD
- Edward Jones CDs are brokered CDs; you buy CDs from other institutions through Edward Jones
- Terms range from 3 months to 10 years
- No early withdrawal penalties; if you want your money before the term ends, you can sell the CD on the secondary market
- If you buy or sell a secondary CD (one that’s previously been issued), you’ll pay up to 2% of the amount you buy and 0.75% of the amount you sell for a commission
- No commission fees on CDs bought during their initial offering period
- Interest does not compound on brokered CDs
- When you earn interest, Edward Jones deposits it into your money market account or other bank account
- FDIC insured
Edward Jones is a financial advisory firm and investment company. It offers a wide range of products and services, including certificates of deposit, or CDs.
Edward Jones CDs are unique because they are brokered CDs — meaning Edward Jones purchases CDs from other financial institutions, then passes them onto you. This approach allows you to open CDs with several institutions at once.
Brokered CDs typically have higher interest rates than traditional CDs (though they don’t compound interest), and they don’t charge early withdrawal penalties. Instead, you would sell your CD on the secondary market if you needed the money before your term ends.
If you’re looking to use CDs as part of your savings strategy, Edward Jones’ brokered CDs may be worth considering. Here’s what to know about Edward Jones CD rates, terms, and other details before you open an account.
Edward Jones CD Rates
Edward Jones CD rates are much higher than the national average CD rates, and some terms are competitive with the best CD rates out there. However, banks with the best traditional CD rates compound interest quarterly, monthly, or even daily. Because its accounts are brokered CDs, Edward Jones does not compound interest on its CDs.
To open a CD, you must either have a brokerage or bank account with Edward Jones. The uninvested cash in your brokerage account is held in a money market account within the brokerage account. When Edward Jones pays interest on your CD, the interest goes into either your bank account or the brokerage’s money market account.
As far as term lengths go, Edward Jones CDs run the gamut. The firm offers terms from three months to 10 years. Here are Edward Jones CD rates for some of the most popular terms:
Edward Jones CD Rates Pros and Cons
Edward Jones CD Rates FAQs
Yes, Edward Jones CDs are insured by the FDIC. Because all Edward Jones CDs are bought through FDIC-insured banking institutions, consumers are protected on up to $250,000 at each individual bank.
Edward Jones CDs pay up to 5.50% APY, which is significantly higher than the national average. Some Edward Jones CD rates are higher than the best traditional CD rates out there right now — but unlike traditional CDs, Edward Jones’ brokered CDs do not compound interest.
To open an Edward Jones CD, you’ll either need a bank account or brokerage account with the company. The cash in your brokerage account is held in a money market account. The company will deposit the interest your CD earns into your bank or money market market account.
You may owe a commission of up to 2% of the deposit amount for any secondary CDs you open with Edward Jones, or up to 0.75% on secondary CDs you sell. But if you buy a CD during its initial offering period, you won’t pay a commission fee. Basically, it depends on the role Edward Jones plays in the transaction. A portion of any commission paid may go to your Edward Jones financial advisor.
How Edward Jones CD Rates Compare
Edward Jones CDs vs. Ally Bank CDs
Ally Bank CD rates aren’t nearly as high rates as at Edward Jones. While Edward Jones CD rates range from up to 5.50% APY, Ally pays 3.00% to 5.15% APY. While these are still competitive rates overall, you can find higher rates at Edward Jones and elsewhere.
One thing Ally Bank does have going for it is its wide range of CD terms and options. The Ally High Yield CD has terms from three months to five years. The Ally Raise Your Rate CD comes with a two-year or four-year term. These allow you to increase your rate once (on two-year CDs) or twice (on four-year ones) over the course of your term. Ally also has no-penalty CDs, though Edward Jones brokered CDs have no penalties either (except for the potential loss that could come with selling your CD early).
Ally Bank CDs also compound interest daily, while Edward Jones CDs don’t compound interest at all. Ally offers 24/7 customer service.
Edward Jones CDs vs. Capital One 360 CDs
Capital One CD rates are also lower than Edward Jones’ rates. Capital One 360 CDs pay 4.10% to 5.25% APY. These are high compared to the national average, but lower than the best CD rates right now.
A standout feature of Capital One 360 CDs, though, is that it has a $0 minimum deposit requirement. (Remember, Edward Jones CDs require at least $1,000.) Interest also compounds monthly, and Capital One 360 has 24/7 customer support. But early withdrawal penalties range from three to six months of interest.
Why You Should Trust Us: How We Reviewed Edward Jones CDs
To review Edward Jones CDs, we used Personal Finance Insider’s certificate of deposit methodology, which considers interest rates, minimum deposit requirements, CD term variety, the company’s overall ethics, mobile app quality, and customer service. We assign each category a rating on a scale of one to five, then average the scores together to reach an overall CD rating.
We typically consider early withdrawal penalties, but we omitted this category when reviewing Edward Jones CDs. Brokered CDs do not carry early withdrawal penalties as a general rule.
UFB High Yield Savings
Earn 5.25% APY on your savings. No monthly maintenance fees. No minimum deposit is required to open an account.