Charles Schwab CD Rates: April 2024

Schwab CD Rates

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
3 months	$1,000	Up to 5.41%
6 months	$1,000	Up to 5.32%
9 months	$1,000	Up to 5.18%
12 months	$1,000	Up to 5.15%
18 months	$1,000	Up to 5.30%
24 months	$1,000	Up to 5.20%

See the best CD rates today before choosing the CD that is best for you.

Schwab CDs: Key Features

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 5.41%
Minimum Deposit	$1,000
Term Range	5–18 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.

About Charles Schwab Bank

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.

Compare Account Rates

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.

Pros and Cons of Charles Schwab CDs

Pros

High APYs on short terms
Access to higher FDIC insurance coverage limits
No early withdrawal penalty

Cons

Selling before maturity could result in a loss
Long-term CDs not always available
Minimum deposit is higher compared to some bank CDs

Pros Explained

High APYs on short terms: Many banks and credit unions offer higher rates on longer CD terms, and Charles Schwab's brokered CDs are no exception. However, Charles Schwab CD rates are often high even on the broker's shortest terms, which can be helpful if you can't afford to lock in funds for a year or longer.
Access to higher FDIC insurance coverage limits: Schwab offers brokered CDs from multiple banks, so if you have more than $250,000 to save, you can buy multiple CDs and take advantage of a separate FDIC coverage limit for each account.
No early withdrawal penalty: Brokered CDs can be sold on the secondary market before they mature, and there's no early withdrawal penalty.

Cons Explained

Selling before maturity could result in a loss: While there's no penalty for selling your brokered CD before it matures, the price you'll get depends on market conditions, and you may not get your original investment back.
Long-term CDs not always available: Schwab doesn’t always offer long CDs; if you want to lock in a high APY for several years, you'll need to look elsewhere. See our picks for the best 2-year CDs, 3-year CDs, and 5-year CDs.
Minimum deposit is higher than some bank CDs: Schwab’s $1,000 minimum for CDs is lower than what some firms require, but it may still be too high for many. Some banks and credit unions, like Capital One, often offer CDs with no minimum deposit requirement.

Alternatives to Charles Schwab CDs

A brokered CD from Charles Schwab may or may not be a good fit for you. Here are some alternatives to consider.

Longer-Duration CDs

One of the benefits of a CD is that you can lock in a fixed APY, which can be particularly beneficial if you expect interest rates to decrease. While Schwab's CD maturities are typically relatively short, even at the high end, some banks offer CDs that stretch out to five years or longer. Some other brokered CDs can have terms of up to 20 or even 30 years; see the best CD rates available today to explore your options.

Long-term bank CDs typically have higher early withdrawal penalties, and long-term brokered CD values may be more affected by changes in market rates. As such, consider them only if you can afford to see them through to maturity.

CDs With Low Deposit Requirements

Schwab's $1,000 minimum deposit pales in comparison to the minimums you'll find with some banks and brokerage firms. Jumbo CDs can require as much as $100,000 to open an account. However, there are some banks that have no minimum requirement, like Ally, making it easier for people to save regardless of how much cash they have on hand.

High-Yield Savings and Money Market Accounts

There's no early withdrawal penalty with Charles Schwab Bank CDs, but you can still lose money if you sell your CD before it matures. If you want ready access to your funds without worrying about losing money when you withdraw, consider the top high-yield savings accounts and money market accounts. The interest rates aren't usually as high as CDs, and rates on those accounts can change at any time, but that can be worth the increased liquidity.

I Bonds

If your goal of saving money is to make up for inflation, I Bonds offered by the U.S. government are specifically designed to accomplish that objective. However, current rates may be better or worse than CD rates.

I Bonds don't allow withdrawals within the first 12 months, even with a penalty.

U.S. Treasuries

U.S. Treasury bills, known as T-bills, are often considered to be risk-free because they're fully backed by the U.S. government. Terms are for one year or less.

Are Schwab CDs Brokered?

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.

Can You Withdraw Your Money Early From a Schwab CD Account?

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.

What Is the Minimum Deposit for a Schwab CD Account?

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.

Do Schwab CDs Have FDIC Insurance?

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.

Is It Safe to Buy CDs Through Schwab?

Yes, it's perfectly safe to buy a brokered CD through Schwab. Not only is Schwab a reputable brokerage firm, but its CDs are FDIC-insured up to $250,000 per bank; that means you can get more than the typical $250,000 in insurance if you spread out your investments over several banks.

Does Schwab Charge Fees on CDs?

When buying a new-issue CD, selling concessions are included in the offering price. If you decide to sell your CD on the secondary market before it matures, there's a transaction fee of $1 per bond, with a $10 minimum and a $250 maximum.

Why Is My Schwab CD Losing Money?

While the interest rate on a brokered CD is fixed for the account's term, market rates will continue to fluctuate, which can affect the value of your CD. If interest rates go up, the value of your CD will typically decrease.

However, changes in a brokered CD's value only affect you if you decide to sell the CD on the secondary market before it matures. If you hold the account until maturity, you won't experience a loss.

Are Brokered CDs Better Than Bank CDs?

Brokered CDs often offer higher yields than bank CDs, and you'll generally have more flexibility to sell your investment before maturity without a significant penalty. With some brokers, you can also get much longer CD maturities.

But depending on market conditions, you could potentially lose more when selling a brokered CD early compared to an early withdrawal from a bank CD. Additionally, you're more likely to find bank CDs with low or no minimum deposit requirements, making them more accessible in general.

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