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Edward Jones is a financial advisory firm and investment company. It offers a wide range of products and services, including certificates of deposit, or CDs.
Edward Jones CDs are unique because they are brokered CDs — meaning Edward Jones purchases CDs from other financial institutions, then passes them onto you. This approach allows you to open CDs with several institutions at once.
Brokered CDs typically have higher interest rates than traditional CDs (though they don't compound interest), and they don't charge early withdrawal penalties. Instead, you would sell your CD on the secondary market if you needed the money before your term ends.
If you're looking to use CDs as part of your savings strategy, Edward Jones' brokered CDs may be worth considering. Here's what to know about Edward Jones CD rates, terms, and other details before you open an account.
Current Edward Jones CD Rates
Edward Jones CD rates are much higher than the national average CD rates, and some terms are competitive with the best CD rates out there. However, banks with the best traditional CD rates compound interest quarterly, monthly, or even daily. Because its accounts are brokered CDs, Edward Jones does not compound interest on its CDs.
As far as term lengths go, Edward Jones CDs run the gamut. The firm offers terms from three months to 10 years. Here are Edward Jones CD rates for some of the most popular terms:
| CD Term | APY (Annual Percentage Yield) |
| 3 months | 4.85% |
| 6 months | N/A |
| 9 months | N/A |
| 1 year | 4.15% |
| 18 months | N/A |
| 2 years | 3.65% |
| 30 months | N/A |
| 3 years | 3.65% |
| 4 years | 4.20% |
| 5 years | N/A |
| 7 years | N/A |
| 10 years | N/A |
How to Invest in Edward Jones CDs
The Edward Jones CD account opening process demands more steps than opening a CD from a traditional bank. To open a CD, you must either have a brokerage or bank account with Edward Jones. The uninvested cash in your brokerage account is held in a money market account within the brokerage account. When Edward Jones pays interest on your CD, the interest goes into either your bank account or the brokerage's money market account.
You'll need to select a financial advisor to open an account with Edward Jones. You can take an online quiz to get matched to a financial advisor or search for advisors by name or location.
Should You Invest in Edward Jones CDs?
Edward Jones CD rates are high and worth considering if you want a brokered CD. Brokered CDs often come with higher rates than traditional CDs and can be sold at any time, with no early withdrawal penalty.
Just be warned: Brokered CDs don't compound interest, so this could limit your CD's earning potential.
Edward Jones CD Pros and Cons
Edward Jones CD Pros
- High interest rates
- Many term options
- No early withdrawal penalties
- FDIC-insured
Edward Jones CD Cons
- Could lose money if you sell your CD before it reaches maturity
- Interest does not compound
- You must have an existing Edward Jones brokerage or bank account to open a CD
Edward Jones CD Alternatives
Edward Jones CDs vs. Ally Bank CDs
Ally Bank CD rates aren't nearly as high rates as at Edward Jones. While Edward Jones CD rates go up to 4.85% APY, Ally pays 3.00% to 5.00% APY. While these are still competitive rates overall, you can find higher rates at Edward Jones and elsewhere.
One thing Ally Bank does have going for it is its wide range of CD terms and options. The Ally High Yield CD has terms from three months to five years. The Ally Raise Your Rate CD comes with a two-year or four-year term. These allow you to increase your rate once (on two-year CDs) or twice (on four-year ones) over the course of your term. Ally also has no-penalty CDs, though Edward Jones brokered CDs have no penalties either (except for the potential loss that could come with selling your CD early).
Ally Bank CDs also compound interest daily, while Edward Jones CDs don't compound interest at all. Ally offers 24/7 customer service.
Ally Bank Review
Edward Jones CDs vs. Capital One 360 CDs
Capital One CD rates are also lower than Edward Jones' rates. Capital One 360 CDs pay 3.75% to 4.50% APY. These are high compared to the national average, but lower than the best CD rates right now.
A standout feature of Capital One 360 CDs, though, is that it has a $0 minimum deposit requirement. (Remember, Edward Jones CDs require at least $1,000.) Interest also compounds monthly, and Capital One 360 has 24/7 customer support. But early withdrawal penalties range from three to six months of interest.
Capital One 360 Bank Review
Why You Should Trust Us: How We Reviewed Edward Jones CDs
To review Edward Jones CDs, we used Business Insider's certificate of deposit methodology, which considers interest rates, minimum deposit requirements, CD term variety, the company's overall ethics, mobile app quality, and customer service. We assign each category a rating on a scale of one to five, then average the scores together to reach an overall CD rating.
We typically consider early withdrawal penalties, but we omitted this category when reviewing Edward Jones CDs. Brokered CDs do not carry early withdrawal penalties as a general rule.
Edward Jones CD Rates FAQs
What are the current CD rates at Edward Jones?
Edward Jones CDs pay up to 4.85% APY, which is significantly higher than the national average.
How can I invest in CDs through Edward Jones?
Investing in Edward Jones CDs requires either a bank account or brokerage account with the company. The cash in your brokerage account is held in a money market account. The company will deposit the interest your CD earns into your bank or money market market account.
Is there a minimum investment for Edward Jones CDs?
Edward Jones CDs have a $1,000 minimum opening deposit.
Can I withdraw my investment before the CD matures?
You can sell an Edward Jones CD in a secondary market before it reaches maturity. However, you can potentially lose money if they value of the CD is less than when you first bought it.
How do Edward Jones CD rates compare to traditional banks?
Some Edward Jones CD rates are higher than the best traditional CD rates out there right now — but unlike traditional CDs, Edward Jones' brokered CDs do not compound interest.
Does Edward Jones charge a fee on CDs?
You may owe a commission of up to 2% of the deposit amount for any secondary CDs you open with Edward Jones, or up to 0.75% on secondary CDs you sell. But if you buy a CD during its initial offering period, you won't pay a commission fee. Basically, it depends on the role Edward Jones plays in the transaction. A portion of any commission paid may go to your Edward Jones financial advisor.
Aly J. Yale is a writer and editor with more than 10 years of experience covering personal finance topics including mortgages and real estate. She contributes to Personal Finance Insider’s mortgages and loans coverage.ExperienceAly began her journalism career as reporter, and later an editor, for several neighborhood sections of the Dallas Morning News.Her work has been published in several national publications, including Bankrate, CBS, Forbes, Fortune, Money, Newsweek, US News and World Report, the Wall Street Journal, and Yahoo Finance. She’s also contributed to a variety of mortgage and real-estate publications, such as The Balance, Builder Magazine, Housingwire, MReport, and The Mortgage Reports.Her favorite personal finance tip is to schedule regular check-ins to make sure your credit cards, savings accounts, and other financial vehicles still align with your budget and financial goals. She is a member of the National Association of Real Estate Editors (NAREE).ExpertiseAly’s areas of personal finance expertise include:
- Mortgages
- Loans
- Real estate
- Insurance
EducationAly is a graduate of Texas Christian University, where she received a bachelor’s degree in radio/TV/film and news-editorial journalism.
Compliance and Operations Associate
Evelyn He is a Compliance and Operations Associate on the Personal Finance team to ensure content accuracy and editorial independence so readers get up-to-date and objective financial advice.The compliance team's mission is to provide readers with fact-checked and current stories so they can make informed financial decisions. The team also works to minimize risk for partners by ensuring language is clear, precise, and fully compliant with regulatory and partner marketing guidelines that align with the editorial team.
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