Charles Schwab CD rates of July 2024

Charles Schwab offers brokered certificates of deposit (CDs) that allow you to earn a higher yield than you might in a typical savings account. You may also have access several additional term options, and no maintenance or early withdrawal fees, though you may have to settle for less if you want your cash back early.

Account details and annual percentage yields (APYs) are accurate as of June 20, 2024.

Overview of Charles Schwab certificates of deposit

Schwab sells brokered CDs, which differ from bank CDs. While the CDs are issued by banks, they are offered through brokerage firms like Schwab. They can be purchased as newly issued CDs or resold on the secondary market.

Unlike with a bank CD, you can’t simply redeem a brokered CD early if you no longer want it. You must find a buyer. The good news is you avoid an early withdrawal penalty. But you may have a hard time selling your CD or receive less than the original purchase price.

Schwab offers four CD terms ranging from three months to 18 months, each paying simple interest at a rate ranging from 4.40% to 5.51%.

You’ll be subject to different minimum deposit requirements and fees depending on whether you purchase a newly issued CD or buy a CD on the secondary market. Additionally, because CDs differ based on their issuer, the timing of interest payments may vary. CDs generally pay interest monthly, semiannually or at maturity.

ABOUT CHARLES SCHWAB BANK SCHWAB CD ONESOURCE
Minimum deposit	$1,000 for new issues
Term lengths	Three months, six months, nine months, 12 months, 18 months, 24 months, 36 months, 48 months, 60 months, 120 months
APY range	4.40% to 5.51%
Interest schedule	Interest is generally paid monthly, semiannually or at maturity, depending on the CD
Early withdrawal penalty	None
Purchase fees	$0 for new issues $1 per secondary trade online $25 plus online fee for broker-assisted trades

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How much can you earn with a Charles Schwab CD?

The amount you can earn with a Charles Schwab Bank CD OneSource depends on a few factors, including the term, interest rate and deposit. Like with other fixed-income products, CD yields can fluctuate. But once you purchase a CD, the rate is locked in until maturity.

Remember that, unlike bank CDs, brokered CDs don’t have compound interest. So your earnings on a brokered CD may be slightly lower than they would be on a bank CD with the same interest rate.
The table below shows how much you can earn on a $10,000 deposit in a Schwab CD:

CD TERMS	APY	EARNINGS ON A $10,000 DEPOSIT
3 months	5.51%	$134.99
6 months	5.47%	$269.86
9 months	5.44%	$405.29
12 months	5.45%	$545
18 months	5.35%	$813.14
24 months	5.35%	$1,098.62
36 months	4.90%	$1,543.21
48 months	4.70%	$2,016.74
60 months	4.60%	$2,521.56
120 months	4.40%	$5,381.72

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How Charles Schwab’s CDs compare

Schwab’s brokered CDs differ from bank CDs in several ways, including how they’re purchased, how interest works and how early redemption works. Other major brokerage firms also sell brokered CDs.
Here’s how Schwab’s CD rates compare to those of two other major brokerage firms, the Vanguard brokered certificates of deposit and Fidelity certificates of deposit:

CD TERM	SCHWAB CD RATE	VANGUARD CD RATE	FIDELITY CD RATE
Three months	5.51%	5.45%	5.30%
Six months	5.47%	5.40%	5.25%
Nine months	5.44%	5.30%	5.20%
12 months	5.45%	5.45%	5.05%
18 months	5.35%	5.40%	5.00%

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These brokerage firms also differ in the term lengths they offer. Fidelity offers additional terms of two, three, four and five years, while Vanguard offers those and seven- and 10-plus-year terms.

How to open a Charles Schwab CD account

If you don’t already have a Charles Schwab account, creating one is the first step before you can purchase CDs. To open an account, follow these steps:

1. Choose an account type. You can purchase CDs through a Schwab brokerage or retirement account.
2. Complete the application. This process takes between five and 10 minutes. You must provide your personal information. The application also includes regulatory information and account feature information.
3. Fund your account. Before you can purchase CDs, you must have the full purchase price in your Schwab account.
4. Purchase CDs. Once your account is up and running, purchase CDs by going into the trade section of your account and searching for CDs.

Documents you’ll need

To open a Schwab brokerage account, you must provide the following information:

• Your Social Security number or tax identification number.
• Your employer’s name and mailing address.
• Your email address and phone number.

Other savings options at Charles Schwab

In addition to its brokered CDs, Schwab offers other cash investment options that can help grow your money and keep it safer than it would be in the stock market. They fall into two categories: savings and investment cash and everyday cash.

Savings and investment cash

Your savings and investment cash options through Schwab offer potentially higher yields while preserving your principal and making it easier to access your money. Schwab’s brokered CDs fall into this category, as do the following accounts:

• Charles Schwab Bank Investor Savings™ account: This liquid savings account has no minimum balance, no monthly service fee, a Visa debit card, and easy transfers to your other Schwab bank and brokerage accounts. But you’ll earn a lower yield than you would in most popular online high-yield savings accounts.
• Charles Schwab Money Funds: Earning less than Schwab’s CDs but more than its savings account, Schwab Money Funds are prime, municipal and government money funds with no transaction fees. You can earn taxable or tax-exempt income while preserving your capital and maintaining liquidity.

Everyday cash

Schwab has two everyday cash accounts, which allow you to manage your daily expenses, pay your bills and purchase investments:

• Uninvested cash in your Schwab brokerage and retirement accounts: After you deposit money in your brokerage account but before you purchase investments, you’ll earn a small amount of interest. You can use this uninvested cash to manage your daily expenses or purchase investments.
• Charles Schwab Bank Investor Checking™ Account: This checking account allows you to manage your daily expenses with no monthly service fee, no account minimum and a Visa debit card. It is linked to your Schwab brokerage account, making transferring money between the two easy.

Frequently asked questions (FAQs)