Edward Jones’ brokered CDs offer significantly higher APYs
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Edward Jones CD Rates
Since 1922, Edward Jones has been a leading financial services firm. It has a range of investment and deposit products, including certificates of deposit (CDs). Edward Jones’ CDs are brokered accounts, meaning it offers CDs from multiple banks. As a result, Edward Jones CD rates can be significantly higher than the national average.
Important
The APYs listed below are up to date as of the date of publication of this article. We review CD rates every two weeks and update the information below accordingly.
| CD Term | APY |
| 3 months | 5.32% |
| 6 months | 5.25% |
| 9 months | 5.10% |
| 12 months | 5.00% |
| 18 months | 4.95% |
| 24 months | 4.80% |
| 30 months | – |
| 36 months | 4.65% |
| 48 months | 4.10% |
| 60 months | 4.05% |
| 84 months | – |
| 120 months | – |
See the best CD rates today before choosing the CD that is best for you.
Edward Jones CDs: Key Features
| APY Range | 4.05%–5.32% |
| Minimum Balance | $1,000 |
| Term Range | 3–120 months |
| Early Withdrawal Penalty | Early withdrawals not permitted |
The minimum amount to open an Edward Jones CD is $1,000, and terms range from 3 to 120 months.
Rates for CDs at Edward Jones can be much higher than you’ll find elsewhere. However, there are some key details you should know before opening an account.
Early Withdrawals Are Not Permitted
With a CD, your money is locked into the account until its maturity date. However, most banks and credit unions allow you to make early withdrawals if you pay a penalty or forfeit a portion of the accrued interest.
Edward Jones’ CDs work differently. Because they are brokered CDs, early withdrawals are not permitted at all. The only exception is in the event of the death of the CD owner or if the owner has been adjudicated incompetent, meaning the owner is declared unfit to manage their affairs. In those scenarios, an early withdrawal is usually permitted without penalty. Otherwise, you cannot access the cash in the CD until its maturity date.
Warning
The only way to “withdraw” money from an Edward Jones CD before its maturity date is to sell it on the secondary market. There is no guarantee that the CD will sell, or it may sell for less than the original principal.
CDs Are Not Automatically Renewed
Generally, banks give you a short grace period once the CD reaches its maturity date. You have a few days to decide to transfer funds or open a new CD. But if you don’t take action, the bank will automatically renew the CD and lock it into a new term.
With Edward Jones, you have to make a note of the maturity date and come up with a plan on your own. Edward Jones’ CDs are not automatically renewed or rolled over into new CDs—the funds will automatically be credited to your Edward Jones account.
Interest Does Not Compound
With most interest-bearing CDs, interest compounds, meaning you earn interest on the interest you already earned. However, that’s not the case with CDs opened through Edward Jones.
Interest on Edward Jones’ CDs is not compounded. With CDs opened on the primary market, interest is calculated based on the actual number of days the account is open and the annual percentage rate (APY).
Compare CD Account Rates
As a broker, Edward Jones is able to offer higher APYs than most banks and financial institutions. And while some banks advertise higher rates for select terms, Edward Jones’ CDs have higher than average rates on all term lengths.
Some banks also have no minimum deposit requirements, but Edward Jones requires you to deposit at least $1,000.
Are Edward Jones CDs FDIC-Insured?
Yes, CDs opened through Edward Jones are backed by FDIC deposit insurance. Your account is covered up to a maximum of $250,000.
Does Edward Jones Charge Fees to Open a CD?
Edward Jones does charge fees, selling concessions, and commissions for CDs. What you pay depends on Edward Jones’ role in the transaction:
- When Edward Jones acts as the principal: With principal transactions, you are opening a CD through Edward Jones’ own inventory. When Edwards Jones is the principal, it receives a selling concession that is incorporated into the initial offering price.
- When Edward Jones acts as the agent: If Edward Jones is the agent, the firm facilitates opening a CD with another financial institution or brokerage. When Edward Jones is the agent, you pay the firm a commission for the transaction.
If you buy or sell secondary CDs, meaning CDs that were previously issued, you may pay a commission as high as 2% of the dollar amount you buy.
In all CD transactions, your Edward Jones’ financial advisor will receive a percentage of any commissions, selling concessions, or fees.
Are Edward Jones CD Rates Competitive?
According to the FDIC, the average rate for 12-month CDs was 1.85% as of February 2024. Typical rates for CDs opened through Edward Jones were significantly higher.
Although Edward Jones offers higher-than-average CD rates, the broker does have some limitations and requirements. Before opening a CD with Edward Jones, check out the best CD rates to ensure you’re picking the right CD for your needs.
How Do You Open a CD Account at Edward Jones?
Unlike most banks and financial institutions, which allow you to open a new CD online, Edward Jones requires extra steps.
To open a CD, you must contact a local Edward Jones financial advisor. You will likely need to meet with your Edward Jones advisor in person and complete paperwork in their office before you can open a CD.
To get started, use Edward Jones’ financial advisor search tool to find an advisor near you.
Your Guide to CDs
- What Is a Certificate of Deposit (CD)?
- What Is a Brokered CD?
- What Is a CD Ladder?
- Pros and Cons of CDs
- How to Invest With CDs
- How to Open a CD
- How to Close a CD
- CDs vs. Annuities
- CDs vs. Stocks
- CDs vs. Mutual Funds
- CDs vs. ETFs
- CDs vs. Savings Accounts
- Short-Term vs. Long-Term CDs
- CD Rates News
- Best 1-Year CD Rates
- Best 18-Month CDs
- Best Jumbo CD Rates
- Best 6-Month CD Rates
- Best 3-Month CD Rates
- Best Bank CD Rates
Read the original article on Investopedia.