Certificates of Deposit
Certificates of deposit (CDs) can be a good choice when you want steady, predictable income that provides federal protection of your principal1.
CDs allow you to lock in an interest rate for a set period of time and give you a predictable payout. New Issue CDs3 can be purchased commission-free and are FDIC-insured for up to $250,000. Take a closer look at the benefits.
What does Schwab offer?
- Schwab CD OneSource® for more choices of CDs
- Easy online transactions in your Schwab account or through a Fixed Income Specialist
- Convenient order placement seven days a week
Easily build your own bond ladder with our new online CD & Treasury Ladder Builder.
CDs are bank deposits that pay a stated amount of interest for a specified period of time and promise to return your money on a specific date. They are federally insured and issued by banks and savings-and-loans institutions. They can be purchased for as little as $1,000 with a term that ranges from 1 month to 20 years.
Why would Schwab recommend them?
CDs can be an appropriate investment for investors looking to earn a better interest rate of return than a savings account offers and who value FDIC insurance, principal protection, and a fixed rate of return, and who don’t mind setting aside cash for a specific term.
Current CD rates available through Schwab CD OneSource
See below for a selection of today's rates
|Maturity Ranges||Rates up to|
|1-3 Month CDs||0.05% APY|
|4-6 Month CDs||APY|
|7-9 Month CDs||0.3% APY|
|10-18 Month CDs||0.35% APY|
A selling concession is included in the offering price for online and broker-assisted trades.
$1 transaction fee3 per $1,000 CDs ($10 minimum, $250 maximum)
Online price + $25 per trade service charge3
Take a closer look at the benefits.
Schwab CD OneSource® offers you a virtual one-stop marketplace for CDs, with competitive rates, all in one convenient location. Use Schwab CD OneSource® to easily compare CDs by yield, maturity, and institution. Also, there is no additional charge when you buy through Schwab CD OneSource.
Choice and control
Schwab CD OneSource offers you a wide selection of CDs, making it easy to search for the rate and maturity that meet your needs. Additionally, your CDs are held in your Schwab brokerage account, not at the issuing institution, allowing you to see your whole financial picture and manage your investments in one place.
Insure more money using FDIC coverage
Current FDIC coverage insures each individual bank up to $250,0001 per depositor. One strategy to keep more money insured by the FDIC is to buy CDs from multiple banks using Schwab CD OneSource.
Notification of maturity
Schwab will send you a notification when your CD reaches maturity, reminding you that it’s coming due and to take action if you wish to make another investment. If you want to reinvest the CD, perhaps choosing a different issuer with a different term or interest rate, simply call us or go online at Schwab.com to see what's currently available.
The most common risk is that you will need your funds before the CD matures. In that case, we'll help you sell your CD at the current market price. If you decide to sell, you'll receive the bid price plus any accrued interest. Although there are no early redemption fees, you may receive less than your original purchase price.
A callable CD is a certificate of deposit that pays a fixed interest rate over its lifetime. What differentiates a callable CD from a traditional CD is that the issuer can redeem, or "call," your CD from you for the full amount before it matures. The risk is that the issuer will exercise a call option at an unfavorable time for the holder, such as when interest rates decline.
Talk to a specialist
For steady, predictable income that is also FDIC-insured, many investors turn to CDs: certificates of deposit.
It’s easy to find and purchase a CD that is right for you in just a few quick steps on Schwab.com
Start by logging in to your account and choosing Trade > CDs.
Select the account you’d like to use when purchasing your CD by checking the ‘Accounts’ dropdown.
Now you can browse the highest yielding CDs from the many banks available through Schwab CD OneSource.
Each list includes a range of dates they may mature on.
Choose different timeframes and reorder the list by clicking coupon payment, maturity date, or Annual Percentage Yield.
Click on a bank name for a detailed description with information like maturity date, first coupon payment, settlement date, and how often you will receive interest.
Once you know which CD you’d like to purchase, click Buy.
This will bring you to order entry with all the relevant CD information pre-populated.
Here, review the details of the bank name, coupon, and maturity date,
and you’ll just need to enter the total amount you’d like to invest in the CD.
Note that this field is already in the thousands, so enter accordingly.
Here, we’re investing $50,000 so we’ll enter “50”
Now you have the opportunity to choose whether or not you’d like to rollover, or reinvest, the proceeds from your CD once it’s matured.
If you decide to rollover, you can also pick the new CD’s maturity timeframe.
Also note that CD orders are marked as a limit order to “Fill or Kill”, meaning it will be cancelled if not filled immediately in its entirety.
When you’re ready, click “Review Order”
If everything looks correct, including the total cost, click Place Order to complete your purchase.
During order verification you may see a screen with additional disclosures that apply to your selected CD.
Once you’ve reviewed, click “Continue”
You’ll see an order acknowledgment where you can again confirm your trade details, and at any time you’re logged into your Schwab account, you can check the order status of your CD by hovering over “Trade” and clicking “Order Status”.
Find current rates and CDs that fit your fixed income needs by logging in at schwab.com/cd
Buying a CD in 5 easy steps.
Talk to a specialist
Ready to start trading bonds and CDs?
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Call a specialist.
- How do I buy CDs through Schwab CD OneSource?
- What are some benefits of buying CDs through Schwab CD OneSource?
- What happens if I need my funds before the CD matures?
- How does FDIC insurance work for CDs in Schwab CD OneSource?