Certificates of Deposit (CDs)

Certificates of deposit (CDs) can be a good choice when you want steady, predictable investment income that is federally insured.1

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Certificates of Deposit

  • Certificates of Deposit

    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. 

Benefits and Risks

Certificates of Deposit benefits and risks
Benefits Risks
Steady and predictable – Lock in an interest rate for a set period of time, while also generally providing a better interest rate of return than a savings account. 

Broad selection – Choose from different account types and from terms that range from 1 month to 20 years. 

Insure more money using FDIC coverage – Current FDIC coverage insures each individual bank up to $250,000 per depositor1.
Market risk – The most common risk is that you will need your funds before the CD matures. Although there are no early redemption fees, you may receive less than your original purchase price. 

Call risk – For callable CDs, 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.

Current CD rates available through Schwab CD OneSource

See below for a selection of today's rates

Current CD rates available through Schwab CD OneSource
Maturity Ranges  Rates up to
1-3 Month CDs  2.42% APY
4-6 Month CDs 2.72% APY
7-9 Month CDs 2.96% APY
10-18 Month CDs 3.10% APY

Buying a CD in 5 Easy Steps

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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

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Find and buy CDs in 5 easy steps

Easily find CDs that fit your needs with Schwab CD OneSource®, a virtual one-stop marketplace with competitive rates2 and a wide selection.3 

Minimize exposure to interest rate fluctuations with a CD ladder.

A CD ladder is a portfolio of individual CDs that mature on different dates, helping investors avoid trying to time the market. Staying disciplined and reinvesting the proceeds from maturing CDs can help investors to ride out interest rate fluctuations. 

CD Ladder

Talk to a Schwab Fixed Income Specialist.

Our specialists offer objective, non-commissioned guidance on a wide range of fixed income products and strategies including ladders, bullets, barbells, and more. You can expect personalized service on topics such as:

  • Help with choosing from a wide variety of investment options
  • Suggestions for adjusting to changing market conditions
  • Assistance with using our online trading features

Call 877-903-8069

Specialist

Have a specialist contact you.

Common questions

We'll help you sell the CD at the current market rate by requesting bids on your CD and contacting you with the highest one. If you decide to sell, you'll receive the bid price plus any accrued interest. There are no guarantees that you'll get what you originally paid for the CD.

All CDs in CD OneSource are offered by FDIC-insured banks. The Federal Deposit Insurance Corporation insures deposits at FDIC-insured banks. The basic insurance amount is $250,0001 per depositor per insured bank. Each CD you purchase from a different institution is FDIC-insured in aggregate based on ownership type at that bank. For example, if you own two CDs, $250,000 from one bank and $250,000 from a second bank, and you have no other deposits at those banks, you’re covered for $500,000.

Schwab offers brokered CDs which can be resold through brokerage firms at the market price. If the client wants to redeem before the maturity, the price may differ from the original purchase price of CD, which may result in a gain or loss. Banks offer traditional CDs and often have you forfeit the interest payment to redeem CD early. Bank CDs cannot be held in a brokerage account and must be held in an account with that specific bank.

Questions? We're ready to help.