If you have a Schwab retirement savings or brokerage account, you can invest in fixed-income assets, like bonds and brokered certificates of deposit (CDs). Brokered CDs differ slightly from bank CDs, but they offer both the benefits of FDIC insurance and (typically) higher-than-average rates.
Schwab’s brokered CDs come with flexible terms and generous rates, making them a suitable option for many depositors. If you’re shopping around for a new CD, here’s what to know about Schwab CD rates, terms, and features.
The APYs listed are up to date as of the date of publication of this article. We review CD rates every two weeks and update the information below accordingly.
| Schwab CD Overview | ||
|---|---|---|
| CD Term | Minimum Deposit | APY |
| 1–3 months | $1,000 | Up to 5.46% |
| 4–6 months | $1,000 | Up to 5.47% |
| 7–9 months | $1,000 | Up to 5.44% |
| 10–18 months | $1,000 | Up to 5.55% |
Schwab CDs are brokered CDs, not bank CDs. Brokered CDs are similar to bank CDs, but they’re purchased through an intermediary (Schwab, in this case) instead of directly from the bank. Buying brokered CDs allows you to invest in CDs from several banks, instead of just one, and you’ll get FDIC insurance up to $250,000 from each bank.
Brokered CDs are generally more flexible than bank CDs, with wider term ranges; they can also be sold on the secondary CD market, which gives investors a way to get their money back (or at least some money back) without paying a withdrawal penalty.
| Schwab CD: Key Features | |
|---|---|
| APY Range | Up to 5.55% |
| Minimum Deposit | $1,000 |
| Term Range | 1–18 months |
| Early Withdrawal Penalty | If you opt to sell before maturity, Schwab will offer you the current market rate for your CD. Depending on market conditions, this could result in a loss or gain. |
Minimum deposits for brokered CDs may be higher than what you’d see with certain bank CDs. If you have a small sum of money to deposit, shopping around for CDs with a low minimum deposit requirement is a good strategy.
While it’s best known for its investment products and services, Charles Schwab also offers banking products like savings accounts, checking accounts, and loans.
Schwab’s brokered CDs come with some impressive rates, making them worth considering if you have an existing account or want to create a new one. Schwab investors can also purchase shares of stock, ETFs, mutual funds, index funds, bonds, and cryptocurrency through their investment accounts.
Overall, Schwab has a strong reputation in the industry. It was established in 1971 and is a leading investment firm in the U.S. Account holders benefit from 24/7 customer service via live chat and accessible phone support. If you’re looking for the convenience of all-in-one banking and investing, Schwab may provide exactly what you need.
You can deposit money in a bank CD directly with an online bank, local bank, or credit union. Brokered CDs aren’t available through these channels. Instead, you can invest in a brokered CD through an investment account at a brokerage.
Schwab CDs often have attractive rates, but brokered CDs aren’t for everyone, and it always pays to shop around. Explore more high-yield accounts below before making a decision.
Yes, Schwab CDs are brokered CDs. At the time of publication, the company did not offer bank CDs. You can invest in brokered CDs from multiple banks through Schwab, and sell them on the secondary market if you decide not to wait for them to mature.
It’s possible to withdraw your money early from a Schwab CD account, but doing so may result in a loss. If you’d like to withdraw your funds ahead of maturity, Schwab will sell your brokered CDs at the current market rate (which includes a transaction fee). If the current market rate is lower than your initial rate, you will likely take a loss. But if the current market rate is higher, it may result in a gain.
The minimum deposit for a Schwab CD account is $1,000. Schwab doesn’t mention a maximum deposit, though its brokered CDs are insured up to $250,000 per bank by the FDIC, which is important to keep in mind when you invest.
Yes, Schwab CDs have FDIC insurance. Its brokered CDs are insured up to $250,000 per bank, which means if you get CDs from multiple banks, each bank will offer its own insurance. If you have more than $250,000 to deposit, splitting up your money this way—by getting multiple brokered CDs through a single brokerage—can be simpler and easier than opening accounts at multiple banks.