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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 – Product Name Only rates, terms, and other details before you open an account.
Edward Jones CD Rates
Note: Edward Jones CD rates change frequently. We check rates every weekday to keep the rates in this article up to date.
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.
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.
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 TermAPY (Annual Percentage Yield)3 months5.40%6 months5.35%1 year5.50%2 years5.25%3 years5.00%5 years4.65%
Edward Jones CD Rates Pros and Cons
ProsCons
High interest rates
Many term options
No early withdrawal penalties
FDIC-insured
Could lose money if you sell your CD before it reaches maturityInterest does not compoundYou must have an existing Edward Jones brokerage or bank account to open a CD
Edward Jones CD Rates FAQs
Are Edward Jones CDs FDIC-insured?
Yes, Edward Jones CDs are insured by the FDIC. Because all Edward Jones CDs are bought through FDIC-insured banking institutions, consumers are protected on up to $250,000 at each individual bank.
What are Edward Jones CDs paying?
Edward Jones CDs pay Edward Jones CD – APY APY, which is significantly higher than the national average. 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.
Can anyone open an Edward Jones CD?
To open an Edward Jones CD, you’ll either need 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.
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.
How Edward Jones CD Rates Compare
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 range from Edward Jones CD – APY APY, Ally pays Ally High Yield CD – APY 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 – Product Name Only has terms from three months to five years. The Ally Raise Your Rate CD – Product Name Only 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.
Edward Jones CDs vs. Capital One 360 CDs
Capital One CD rates are also lower than Edward Jones’ rates. Capital One 360 CDs pay Capital One 360 CD – APY 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 Capital One 360 CD – Minimum Deposit minimum deposit requirement. (Remember, Edward Jones CDs require at least Edward Jones CD – Minimum Deposit.) 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.
The bottom line: 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.
Why You Should Trust Us: How We Reviewed Edward Jones CDs
To review Edward Jones CDs, we used Personal Finance 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.