Charles Schwab CD Rates 2024

Charles Schwab offers several certificates of deposit (CDs) with terms ranging from one month to 10 years. However, the brokerage firm doesn’t publish all of its terms and rates online, and the only way to find out the current rates is to log in to your account or speak with a representative. Based on our research, Charles Schwab’s current CD rates are currently comparable with or higher than top online banks.

Here’s an overview of Charles Schwab Bank CD OneSource rates. Rates are accurate as of May 3, 2024.

CD Term	APY	Minimum Deposit
1 Month	5.48%	$1,000
3 Months	5.46%	$1,000
6 Months	5.37%	$1,000
9 Months	5.28%	$1,000
1 Year	5.15%	$1,000
18 Months	5.10%	$1,000
2 Years	5.00%	$1,000
3 Years	4.90%	$1,000
4 Years	4.70%	$1,000
5 Years	4.60%	$1,000
10 Years	4.40%	$1,000

See MoreSee Less

Overview of Charles Schwab CDs

You must be a Charles Schwab customer to buy a brokered CD through the brokerage firm. A $1,000 minimum deposit is required to buy a Charles Schwab CD, although higher deposits are allowed in $1,000 increments. Charles Schwab partners with dozens of U.S. financial institutions to offer CDs that are FDIC-insured up to $250,000 per depositor, per insured bank. These partnerships let you keep CDs at multiple banks and extend insurance coverage beyond traditional limits.

Like other brokerage firms, Charles Schwab doesn’t allow early withdrawals of CD funds. Instead, you may be able to sell your CD on the secondary market if you need access to funds before the end of the CD term. After the initial deposit, account holders can’t deposit additional funds into a Charles Schwab CD account.

The interest earned on most Charles Schwab CDs is deposited into the account holder’s brokerage account. Interest payouts occur monthly, quarterly, semi-annually or at maturity depending on the term length and the issuing bank.

Account Features	Details
Minimum Deposit	$1,000
Term Lengths	1, 3, 6, 9, 12, 18 months and 2, 3, 4, 5, 10 years
Compounding Schedule	N/A
Early Withdrawal Penalty	N/A
Grace Period for Penalty-Free Withdrawals After Maturity	N/A

See MoreSee Less

How Much Can You Earn With a Charles Schwab CD?

CDs offer something that most investments don’t: guaranteed returns. With fixed rates and terms, you can calculate exactly how much money you will earn from a CD. Like other brokered CDs, Charles Schwab CDs don’t compound, and earnings are calculated differently than with a standard certificate of deposit.

Use the calculator below to determine how much you can earn with a Charles Schwab brokered CD. Because interest doesn’t compound on brokered CDs regularly like traditional CDs, interest schedule calculations may be slightly different.

How To Open a CD With Charles Schwab

To open a CD with Charles Schwab, you will first need to open a brokerage or retirement account (such as an IRA). You can open an account online by providing your name, login credentials and some basic personal information. You’ll also need to agree to some regulatory disclosures and review account agreements.

Once your Schwab account is open, you can log in and browse different CD choices. You will need to deposit the full amount you wish to invest—at least $1,000—into your Schwab account before purchasing a CD. Once the funds have been deposited, you can place an order to purchase the CD of your choice.

How Charles Schwab CDs Stack Up

Charles Schwab CDs offer some of the most competitive rates in the market, outpacing the national average and even some of the top CD rates. For comparison, the national average rate for a one-year CD is 1.81% as of April 15, 2024, according to data from the FDIC.

Purchasing a CD through Charles Schwab requires having a brokerage account with the firm. Its CDs offer a great way to maximize and diversify your savings, but you may find comparable rates elsewhere that don’t require an existing brokerage account to open. Compare CDs at multiple financial institutions to find the highest APYs and terms that match your needs.

About Charles Schwab

Charles Schwab is a full-service wealth management brokerage firm that’s been in business for more than 50 years. The financial services company manages 33.9 million active brokerage accounts and $7.4 trillion in client assets. Charles Schwab ranked No. 1 in the J.D. Power 2024 U.S. Direct Banking Satisfaction Study for checking accounts.

Alternative Options for Charles Schwab CDs

While Charles Schwab offers competitive rates on its CDs, you may want to consider these alternatives:

• Fidelity Certificates of Deposit (brokered CDs). Fidelity is a leading online broker that offers brokered CDs with similar rates to Schwab. But Fidelity’s longer-term CDs sometimes offer better rates. These accounts also come with a $1,000 minimum deposit requirement.
• Vanguard Brokered Certificates of Deposit. Vanguard offers a wide selection of brokered CDs paying some of the best rates with a $1,000 minimum deposit requirement. Its rates on 12-month and 18-month CDs sometimes outperform those offered by Schwab, and Vanguard may have more term options.
• Quontic Bank Certificate of Deposit. If you’re not interested in investing and want to avoid having to open a brokerage account, Quontic Bank CDs offer similarly comparable APYs and an easy online application. Plus, they have a lower minimum opening deposit requirement of $500.

Frequently Asked Questions (FAQs)