Charles Schwab CD Rates for 2024

Charles Schwab CD rates are some of the best in the business. These CDs offer you high rates and the power to trade your CDs on a secondary market. It's a great option for investors with at least $1,000 to invest. In our Charles Schwab CD review, we'll dive into the details so you can decide whether opening a CD account with Schwab is right for you.

Charles Schwab CD rates for 2024

Charles Schwab CDs offer a one-two combo of high rates and many term options. See how they compare to the competition.

Charles Schwab partners with banks to offer you many CD terms and rates. Since Schwab offers CDs through its brokerage account, CDs don't earn compound interest. Plus, instead of withdrawing early and paying fees, you must sell CDs on the secondary market to cash out fast.

Charles Schwab offers brokered CDs, which differ from traditional bank CDs. For one, Charles Schwab doesn't issue the CD itself but rather purchases it (along with a bulk of others) from a CD provider, like a bank. Because it's not the CD issuer, Charles Schwab can shop around at many different banks, find the best CD rates, buy them in bulk, then offer them to you, the client.

Let's take a look at some of the pros and cons of these CDs.

Rates change, but you can lock in a great rate by opening a CD account. Here's a table illustrating what potential earnings could look like if you deposited $1,000 into a Charles Schwab CD.

The numbers in the table below may not be accurate to current APYs and are for example purposes only.

Charles Schwab CDs don't pay compound interest. In other words, the CD rate will apply to your principal only, not to any interest you've built up. This is common for brokered CDs, but differs from bank CDs, which often calculate interest on a more profitable compound model.

Charles Schwab CDs are safe places to put your money. All Schwab's CD banking partners are FDIC insured, so you're covered up to $250,000 per bank. This means you can protect more than $250,000 by spreading your money across Schwab partner banks.

You can open a Charles Schwab CD by following these steps:

1. Open a Charles Schwab brokerage account

You can do this on the Charles Schwab website. Have the following handy: your Social Security number (or Tax Identification number), your employer's name and mailing address (if it has one), your email address, and cellphone number.

2. Log into your Charles Schwab account

Navigate to the "Trade" dropdown and click "CDs."

3. Search for CDs

You can filter CDs offered by partner banks. All partner banks are FDIC insured.

4. Choose a CD to buy

Click the "Buy" button to choose the CD you want.

5. Enter the amount you want to invest

You must invest a minimum of $1,000 and in increments of $1,000.

6. Review your order

Check that everything looks good by clicking "Review Order." Double-check the estimated total cost to be sure you entered the right amount.

7. Complete your purchase

Click "Place Order" to complete your purchase and review any important documents.

A Charles Schwab CD is right for investors who want to invest in multiple high-paying bank CDs through one broker. If you're a current Schwab customer, you can link to your current account.

Charles Schwab also offers the following CD accounts:

• Callable CDs
• Step-Up CDs
• Zero-Coupon CDs

Our CDs methodology

At The Motley Fool Ascent, certificates of deposit (CDs) are rated on a scale of one to five stars, primarily focusing on annual percentage yield (APY) and early withdrawal penalty fees. Our highest-rated CDs generally include competitive APYs without complex qualification tiers, low withdrawal fees, reliable brand trust and reputation, and ease of use.

Learn more about how The Motley Fool Ascent rates bank accounts.