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Edward Jones offers several certificate of deposit (CD) terms, ranging from three months to 10 years. The brokerage firm’s CD rates are more than competitive with online banks and other top financial institutions, offering CD rates from 4.50% to 5.40% APY. A $1,000 minimum opening deposit is required to open an Edward Jones CD.
Here’s an overview of Edward Jones Certificates of Deposit rates. Rates are accurate as of June 11, 2024.
| CD Term | APY | Minimum Deposit |
|---|---|---|
3 Months | 5.40% | $1,000 |
6 Months | 5.40% | $1,000 |
9 Months | 5.40% | $1,000 |
1 Year | 5.35% | $1,000 |
18 Months | 5.20% | $1,000 |
2 Years | 5.05% | $1,000 |
30 Months | N/A | $1,000 |
3 Years | 4.85% | $1,000 |
4 Years | 4.55% | $1,000 |
5 Years | 4.50% | $1,000 |
7 Years | N/A | $1,000 |
10 Years | N/A | $1,000 |
Overview of Edward Jones CDs
Opening an Edward Jones brokered CD requires a brokerage account with the firm. As a brokerage firm, Edward Jones offers CDs from multiple banks, allowing you to diversify your CD portfolio. The minimum opening deposit for an Edward Jones CD is $1,000.
Edward Jones CDs provide competitive rates that rival top online banks.
Edward Jones sells brokered CDs, so early withdrawals aren’t permitted. However, you may be able to sell your CDs on the secondary market if you need access to the funds. You can’t add additional funds to your CD after the initial deposit.
Interest on Edward Jones CDs doesn’t compound. Instead, interest is automatically credited to your Edward Jones account. For CD terms up to 12 months, interest is paid at maturity. For CD terms longer than 12 months, interest is paid monthly, quarterly, semiannually or annually and at maturity. CDs do not automatically renew upon maturity.
| Account Features | Details |
|---|---|
Minimum Deposit | $1,000 |
Term Lengths | 3, 6, 9, 12, 24, 36, 48 and 60 months |
Compounding Schedule | N/A |
Early Withdrawal Penalty | N/A |
Grace Period for Penalty-Free Withdrawals After Maturity | N/A |
How Much Can You Earn With an Edward Jones CD?
Unlike other investments, you can calculate precisely how much you will earn from a CD. Because Edward Jones CDs don’t compound, earnings are calculated differently than with standard certificates of deposit.
Use the below calculator to determine exactly how much you can earn with a CD from Edward Jones. Simply enter your deposit amount, the CD’s term length and its APY, then select Calculate.
Note that because interest on Edward Jones CDs doesn’t compound on a regular basis like traditional banks, the interest schedule beneath the calculator might not align with your actual earnings. However, the value at the end of the term will be accurate.
How Edward Jones CDs Stack Up
Edward Jones CD rates rank among the best in the market and far outpace the national average. According to data from the FDIC, current national averages range from 0.23% for a one-month CD to 1.85% for a one-year CD as of July 15, 2024.
Remember, you must have a brokerage account with Edward Jones to open a CD through the firm. Edward Jones CDs are a great option to maximize savings if you already have a brokerage account with the firm, but others may find comparable CD rates at institutions that don’t require you to have a brokerage account. Compare CD rates at multiple banks and credit unions to find the highest APYs.
Here’s how Edward Jones CD rates compare to Fidelity Certificates of Deposit rates, EverBank Basic CD rates and Sallie Mae Bank Certificates of Deposit rates.
| CD Term | Edward Jones CD Rates | Fidelity CD Rates | EverBank CD Rates | Sallie Mae CD Rates |
|---|---|---|---|---|
3 Months | 5.40% | 4.90% | 3.95% | N/A |
6 Months | 5.40% | 4.75% | 4.00% | 4.80% |
9 Months | 5.40% | 4.35% | 5.05% | 4.85% |
1 Year | 5.35% | 4.80% | 4.80% | 5.15% |
18 Months | 5.20% | 4.00% | 4.20% | 4.75% |
2 Years | 5.05% | 3.90% | 4.10% | 4.50% |
3 Years | 4.85% | 3.80% | 4.00% | 4.00% |
4 Years | 4.55% | 3.60% | 3.80% | N/A |
5 Years | 4.50% | 3.75% | 3.80% | 4.00% |
How To Open a CD With Edward Jones
Opening a CD with Edwards Jones requires a little more work than opening a CD online or at your typical bank. To open a CD, you must first contact an Edwards Jones financial advisor. CDs are only available for Edwards Jones customers, so you must set up an account with the brokerage firm. Then, your financial advisor can help you open a CD.
Pro Tip
While there’s no cost to open a CD through Edwards Jones, the brokerage does charge varying fees for many of its other financial services. Weigh any charges against other brokers and banks to determine whether it’s worth opening a brokered CD through Edward Jones. If your primary goal is to earn interest on CD deposits, there are other options available that do not require signing up for a brokerage account or working with a financial advisor.
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About Edward Jones
Edward Jones is a full-service investment brokerage firm operating in the U.S. and Canada. Established in 1922, Edward Jones provides various investment services and products, including financial and retirement planning, estate planning, education savings plans and life insurance.
Alternatives to Edward Jones CDs
If you don’t have or want to open an Edward Jones brokerage account, there are other options for earning high-yield interest on your deposits.
Standard CDs
Standard CDs from a bank or credit union allow you to earn interest over time (similar to brokered CDs) but generally don’t carry stipulations like opening a brokerage account. Typically, you can find the best CD rates at online banks and credit unions, many of which allow you to open an account online in minutes.
Savings Accounts
Most traditional savings accounts don’t offer the kind of rates you can earn with Edwards Jones CDs, but high-yield savings accounts offer much higher APYs, often with a low or no minimum deposit requirement. Plus, savings accounts keep your money more accessible than CDs.
Money Market Accounts
For more flexibility, consider a money market account. The hybrid bank account generally combines the benefits of savings and checking accounts, including a debit card and check-writing privileges. Some require a higher opening deposit, but the best money market accounts pay rates comparable to the best CD rates.
Frequently Asked Questions (FAQs)
Is Edward Jones FDIC insured?
As a brokerage firm, Edward Jones is not FDIC insured like banks and credit unions. However, CDs from Edward Jones are issued by banks and FDIC insured for up to $250,000 per depositor, per depository institution, for each account ownership category.
Does Edward Jones charge a fee for CDs?
There are no fees associated with Edward Jones CDs. As brokered CDs, Edward Jones doesn’t allow early withdrawals, so there are no early withdrawal fees to worry about.
What is a brokered CD?
A brokered CD is a certificate of deposit purchased through an investment brokerage firm instead of from a bank. Interest earned on brokered CDs typically doesn’t compound like traditional CDs, but brokered CDs often earn higher APYs than standard CDs.
Do you need an Edward Jones account to open a CD?
Yes. An Edward Jones brokerage account is required to open a CD with the investment firm. Edward Jones CDs require a $1,000 minimum opening deposit.
What is the CD secondary market?
The CD secondary market is a marketplace that lets owners of brokered CDs sell them to other investors prior to the CD’s maturity date. Money in a brokered CD is generally untouchable until the account matures, but the secondary market makes it possible to sell a brokered CD if you need early access to the cash.
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