Buying a CD in 5 Easy Steps
For steady, predictable income that is also FDIC-insured, many investors turn to CDs: certificates of deposit.
What is a Certificate 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.
Because they are generally considered safe, CDs can be a considerable addition to the fixed income portion of an investment portfolio.
What are the benefits and risks of a CD?
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.
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Current CD rates available through Schwab CD OneSource®
See below for a selection of today's CD rates2,3
|3 Month CDs
|6 Month CDs
|9 Month CDs
|1 Year CDs
|18 Month CDs
|2 Year CDs
|Rates up to
Looking for other cash solutions to help you reach your goals?
See rates for cash products at Schwab and compare the features and benefits of each.