CDs & Money Market Funds
Schwab offers a wide selection of options to manage your cash and cash investments, including a marketplace of brokered CDs, a range of money market funds, and other convenient solutions.
Solutions to invest your cash.
Looking for other alternatives? If you’re not sure which cash and cash investment solutions to choose, we can help you figure out what’s right for you.
Explore solutions to invest your cash.
Competitive Rates and Yields
Get a wide selection of competitive rates.
- CD OneSource offers a wide selection of CDs from banks across the country, with competitive rates and maturities ranging from one month to 30 years.
- Money market funds emphasize high quality, liquidity, and diversification.
|Sample of highest CD rates through CD OneSource|
|Maturity Ranges (as of 9/30/2014)||Rates up to|
|1-3 Month CDs||FDIC-insured||0.2% APY|
|4-6 Month CDs||FDIC-insured||0.3% APY|
|7-9 Month CDs||FDIC-insured||0.35% APY|
|10-18 Month CDs||FDIC-insured||0.45% APY|
|1.5-2.5 Year CDs||FDIC-insured||1% APY|
As of 9/29/2014
|Fund Name||Taxable/Tax-Free||Sweep2||Net Operating Expense Ratio3||7-Day Yield4|
|Schwab Value Advantage Money Fund® – Investor Shares (SWVXX)||Taxable||No||0.45%||0.01%|
|Schwab AMT Tax-Free Money Fund™ – Value Advantage Shares® (SWWXX)||Tax-free5||No||0.45%||0.01%|
|Schwab Cash Reserves™ (SWSXX)||Taxable||Yes||0.66%||0.062%|
|Schwab Government Money Fund™ (SWGXX)||Taxable||Yes||0.73%||0%|
Performance data quoted represents past performance and does not indicate future results.
Schwab sweep money market funds are designed for use in conjunction with certain Schwab accounts. Clients who qualify can designate a sweep money market fund as their account’s primary fund. Uninvested cash balances will be invested automatically in that primary fund, according to the terms and conditions of the client’s account agreement. Similarly, when the account is used to purchase other investments or make payments, shares of the primary fund will be sold automatically to cover those transactions.
1. Funds deposited at an FDIC-insured institution are insured, in aggregate, up to $250,000 per depositor, per insured institution based upon account type, by the Federal Deposit Insurance Corporation (FDIC). The FDIC considers any other deposits you may have with an issuing bank. CDs you purchase from a particular bank are aggregated with any other deposits you may have with the issuing bank for determining FDIC insurance coverage (e.g., if you already have deposits of $250,000 with a bank, do not purchase CDs from the same bank in the same ownership category). Because the deposit insurance rules are complex, you may want to use the FDIC’s Electronic Deposit Insurance Estimator (EDIE) to estimate your total coverage at any particular bank.
2. Clients with total household assets of $500,000 or more are eligible for a sweep money market fund.
3. The investment advisor and its affiliates have agreed to limit the net operating expenses, as stated in the prospectus for each fund, for as long as the investment advisor serves as the advisor to the fund. This agreement may only be amended or terminated with the approval of the fund's Board of Trustees. The limitation excludes any non-routine expenses, such as taxes, expenses for dividends, and interest paid on securities sold short, which may result in a fund incurring net operating expenses above the limitation. Please see the prospectus for more details.
4. The investment advisor and/or its affiliates have voluntarily waived and/or reimbursed expenses in excess of their current contractual commitment in an effort to maintain a positive net yield for the fund or each share class of the fund, as applicable. These voluntary waivers and reimbursements may be modified or terminated at any time, and are subject to future recapture by the investment advisor and/or its affiliates. Fee waivers and/or expense reimbursements (whether contractual or voluntary) have the effect of increasing a fund's net yield; without such fee waivers and/or expense reimbursements, the fund's seven-day yield would have been lower. Please see the prospectus for more details.
5. Dividends from the Schwab AMT Tax-Free Money Fund typically are exempt from federal income tax, including the federal alternative minimum tax (AMT).
Investors should consider carefully information contained in the prospectus, including investment objectives, risks, charges, and expenses. You can request a prospectus by calling 800-435-4000. Please read the prospectus carefully before investing.
An investment in a money market fund is neither insured nor guaranteed by the FDIC or any other government agency. Yields will fluctuate, and, although the fund seeks to preserve the value of your investment at $1 per share, it is possible to lose money by investing in the fund. Compared to the total return, the seven-day yield more closely reflects the current earnings of the fund.
Certificates of deposit are offered through Charles Schwab & Co., Inc. Unlike mutual funds, certificates of deposit offer a fixed rate of return and are FDIC-insured.
CDs from Schwab CD OneSource are issued by FDIC-insured institutions, and are subject to change and system access. Unlike mutual funds, certificates of deposit offer a fixed rate of return and are FDIC-insured up to $250,000, per depositor per institution, based on account ownership type. Visit www.fdic.gov for details. There may be costs associated with early redemption and possible market value adjustment.
Distributor: Charles Schwab & Co., Inc., 211 Main Street, San Francisco, CA 94105