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
Onscreen Text:
Important Disclosures
INVESTMENT AND INSURANCE PRODUCTS ARE: NOT FDIC INSURED • NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY • NOT A DEPOSIT OR OTHER OBLIGATION OF, OR GUARANTEED BY, THE BANK OR ANY OF ITS AFFILATES • SUBJECT TO INVESTMENT RISKS, INCLUDING POSSIBLE LOSS OF PRINCIPAL AMOUNT INVESTED
The example is hypothetical and provided for illustrative purposes only. It is not intended to represent a specific investment product. Dividends and interest are assumed to have been reinvested, and the example does not reflect the effects of expenses, taxes, or fees, and if it had, performance would have been substantially lower.
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 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 (i.e., if you already have deposits of $250,000 with a bank, don't purchase CDs from the same bank in the same ownership category). Because the deposit insurance rules are complex, you may want to use FDIC's online tool, Electronic Deposit Insurance Estimator (EDIE), to estimate your total coverage at any particular bank.
Certificates of Deposit available through Schwab CD OneSource typically offer a fixed rate of return, although some offer variable rates. They are FDIC insured and offered through Charles Schwab & Co., Inc.
Please Note: Certain conditions must be satisfied for FDIC insurance coverage to apply. Charles Schwab & Co., Inc. is not an FDIC-insured bank and deposit insurance covers the failure of an insured bank. Please visit the Schwab CD OneSource® page for a list of insured financial institutions that offer CDs through Schwab.
Fixed income investments are subject to various other risks including changes in credit quality, market valuations, liquidity, prepayments, early redemption, corporate events, tax ramifications and other factors.
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