What are CDs?

CDs are federally insured certificates of deposit issued by banks and savings-and-loan 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.

What does Schwab charge for CDs?

New issues

A selling concession is included in the offering price for online and broker-assisted trades.

Secondary trades

Online price
$1 transaction fee* per $1,000 CDs ($10 minimum, $250 maximum)

Broker-assisted trade
Online price + $25 per trade service charge*

Sample of CD rates available at Schwab through CD OneSource Marketplace.
Maturity Ranges ( 8/15/2018 ) Rates up to
1-3 Month CDs 1.913 %APY
4-6 Month CDs 2.06 %APY
7-9 Month CDs 2.156 %APY
10-18 Month CDs 2.45 %APY
1.5-2.5 year CDs 2.8 %APY

Take a closer look at the benefits.

  • Competitive rates and no fee

    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 are no hidden fees, and there is no additional charge when you buy through Schwab CD OneSource. This is because the deposit institution itself pays Charles Schwab & Co., Inc. a fee for distributing its CDs.

  • 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.

  • 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.

  • 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.

Review the risks.

Market risk

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.

Call risk

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.

Find CDs.

You’ll find a large selection of competitive CD rates and maturities from a wide range of banks across the country.

Schwab CD OneSource®

Choose from a wide selection of CDs with the safety of FDIC insurance.

Take advantage of resources to help you make decisions.

We're here to help

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    You can expect a response by phone within approximately 48 hours. If you’d like to speak with a Schwab Fixed Income Specialist immediately, please call us at 877-906-4670. We appreciate the opportunity to work with you to meet your goals.

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Clients of independent investment advisors: You may also contact your advisor or call Schwab Alliance at 800-515-2157.