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E*TRADE CD Rates for 2024

Review Updated
Brittney Myers
By: Brittney Myers
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Brittney started her writing career in the world of science, putting her physics degree to good use. Her journey into finance started with building her personal credit, but soon grew into a borderline obsession with credit cards and travel rewards. For the last 7 years, she has enjoyed the ability to share her expertise with readers, as well as the opportunity to interview companies and individuals making an impact on our financial lives. She wholly believe most problems can be solved with the right research -- and a good spreadsheet -- and she specializes in translating complex financial topics into actionable advice to help educate and empower readers.

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Ashley Maready
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Ashley Maready is a former history museum professional who made the leap to digital content writing and editing in 2021. She has a BA in History and Philosophy from Hood College and an MA in Applied History from Shippensburg University. Ashley loves creating content for the public and learning new things so she can teach others, whether it's information about salt mining, canal mules, or personal finance.

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Many or all of the products here are from our partners that compensate us. It’s how we make money. But our editorial integrity ensures our experts’ opinions aren’t influenced by compensation. Terms may apply to offers listed on this page. APY = Annual Percentage Yield. APYs are subject to change at any time without notice.

Brokered CDs can be a low-risk way to diversify your investments, and E*TRADE CD rates make the brokerage a competitive option. Investors may also want to consider brokered CDs from E*TRADE if they are looking to avoid hitting FDIC coverage caps with any single bank.

There are a few downsides to brokered CDs you won't get with a regular CD, however, so read our full E*TRADE CD review to see all the pros and cons.

E*TRADE CD rates for 2024

Rates as of June 7, 2024

APY = Annual Percentage Yield

Offer image for E*TRADE CD
E*TRADE CD
Bottom Line

Among CD issuers, brokered CDs tend to offer pretty competitive rates. Unfortunately, E*TRADE does not disclose its brokered CD rates on its website to non-members. You'll need to have (or open) an E*TRADE account and navigate to the "Bonds & CD" link under either the "Trading" or "Markets & Ideas" tab to see what rates and terms are on offer at any given time, and to complete your CD purchase. Member FDIC.

MINIMUM DEPOSIT
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Compare E*TRADE CD rates

The APY (annual percentage yield) you'll get on a brokered CD through E*TRADE will depend on the specific CD and bank you choose. Unfortunately, E*TRADE doesn't publish rates publicly anywhere that we could find, so you'll likely need to have an account to see specific rates. In general, brokered CDs tend to have high APYs at least comparable to our top CD rates.

Rates as of June 7, 2024
Bank & CD Offer APY Term Min. Deposit Next Steps
APY: 4.70% Term: 1 Year Min. Deposit:  $2,500
Open Account for Discover® Bank CD
APY: 5.25% Term: 1 Year Min. Deposit:  $1
Open Account for
APY: 5.10% Term: 9 Months Min. Deposit:  $1
Open Account for

Details about E*TRADE CDs

As a brokerage, E*TRADE doesn't offer typical bank CDs. Instead, you can purchase brokered CDs through your investment account.

Brokered CDs

You can purchase brokered certificates of deposit (CDs) from any number of hundreds of banks through your E*TRADE investment account. Brokered CDs are generally the same as a regular bank CD: You purchase the CD with a set value, and it earns interest until it matures.

However, unlike regular bank CDs, which accrue and compound the interest earned, brokered CDs use simple interest and pay out your interest income at regular intervals. (This could be a pro or con depending on how you look at it.)

Brokered CDs can also offer significantly longer maturities, with options up to 30 years not uncommon. (In contrast, CDs from regular banks tend to max out at 5-year CDs.)

Additionally, brokered CDs can be sold on the secondary market before they mature if you want your money back, with no early withdrawal penalties. That said, there's no guarantee that you'll find a seller, and if interest rates have risen, you may need to sell for less than the purchase price.

Pros

  • Potentially competitive APYs
  • Huge range of maturity options
  • No early withdrawal penalty when sold

Cons

  • No guarantee of value when sold on secondary market
  • Callable CDs can be redeemed by bank prior to maturity

How to open an E*TRADE CD

To purchase brokered CD through E*TRADE, you'll need to open an investment account. You can do this online in about 10 minutes. You can open an account through etrade.com, or through the E*TRADE mobile app. You'll then need to connect to a bank account to fund your investment account.

Once you have a funded E*TRADE investment account, you can purchase a brokered CD through the Bonds & CDs section. You'll see a list of available CDs, including the issuing bank, interest rate, and maturity date. (If you want only non-callable CDs, be sure to toggle that filter.)

After you choose the CD you want to purchase, click "Buy" to review and complete your order.

Who is an E*TRADE CD right for?

A brokered CD from E*TRADE could be a good choice for investors who want a low-risk way to diversify their portfolio. It may also be a good choice for existing E*TRADE customers who want to purchase CDs from multiple banks from their brokerage account to avoid triggering FDIC coverage caps.

Keep reading about E*TRADE:

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.

FAQs

  • Brokered CDs are certificates of deposit that are purchased through a brokerage firm rather than directly from the bank. Unlike regular CDs, brokered CDs tend to pay out interest regularly instead of accrue and compound the interest. Rates can also be higher than traditional CDs.

    Additionally, brokered CDs can generally be sold on the secondary market to get your money back early. The drawback is that you're not guaranteed to find a buyer and you may need to sell for less than the purchase price.

  • Yes, though somewhat indirectly. Brokered CDs are issued by a bank but sold by a brokerage. So, while E*TRADE is not a bank or member of the FDIC, the banks that actually issue the CDs (ideally) are members. This means the CDs have FDIC coverage through the issuing bank (up to the legal maximum of $250,000 per individual per institution).

  • Yes, brokered CDs are generally considered to be a low-risk investment. However, if you cannot hold it to maturity, there is a risk that you will lose money selling it on the secondary market if rates increase. Also, some brokered CDs are callable, meaning the bank can choose to call it in early and refinance if rates decrease.