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Today's Charles Schwab CD Rates: Earn up to 5.25% APY

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  • Charles Schwab CD Rates
  • Pros and Cons
  • FAQs
  • How Charles Schwab CD Rates Compare
  • Why You Should Trust Us
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    Charles Schwab Bank CD Start saving Charles Schwab Bank, FDIC Insured Accounts Charles Schwab Bank Charles Schwab Bank CD Insider’s Rating A five pointed star A five pointed star A five pointed star A five pointed star A five pointed star 3.75/5 Annual Percentage Yield (APY)

    5.13% to 5.25%

    Minimum Deposit Amount

    $1,000

    Pros
    • Check mark icon A check mark. It indicates a confirmation of your intended interaction. Ability to get competitive interest rates from different banks
    • Check mark icon A check mark. It indicates a confirmation of your intended interaction. Variety of CD terms
    Cons
    • con icon Two crossed lines that form an 'X'. $1,000 minimum opening deposit
    • con icon Two crossed lines that form an 'X'. Interest earned may vary depending on market risk/call risk
    • con icon Two crossed lines that form an 'X'. Interest is not compounded
    Insider’s Take

    Charles Schwab CD rates are much higher than the national average. They're brokered CDs, which means you can open accounts with different institutions and sell them if you need access to your money early. In some cases, CD rates through Charles Schwab are even higher than the best CD rates at traditional banks and credit unions — but unlike traditional CDs, brokered CDs don't compound interest. This could limit your earning potential.

    Product Details
    • Through Schwab CD OneSource, you'll choose from CDs at different financial institutions
    • Terms may range from 1 month to 20 years
    • No early withdrawal penalties, but if you need funds before your CD matures, Charles Schwab will sell the CD at the current market rate; the amount of accrued interest for a CD may vary
    • FDIC insured though Charles Schwab & Co., Inc
    Show Pros, Cons, and More chevron down icon An icon in the shape of an angle pointing down.

    Charles Schwab is a financial services company that's primarily known for investment products. But it also offers a variety of banking products, including CDs.

    Charles Schwab Bank CDs are slightly different than those at many other institutions, as they're brokered CDs — not traditional CDs. This means you can open CDs from several institutions through Charles Schwab. If you need money before the term ends, rather than pay an early withdrawal penalty, you'll sell your CD on the secondary market.

    Brokered CDs typically offer flexible terms and higher interest rates than traditional CDs, but they do not compound interest. With Schwab CDs, your earned interest is automatically deposited into your Charles Schwab brokerage account.

    Here's what to know about Charles Schwab CD rates, terms, and other details before you open one.

    Charles Schwab CD Rates

    Note: Charles Schwab CD rates change frequently. We check rates every Monday to keep the rates in this article up to date.

    TermAPY (Annual Percentage Yield)
    3 Month CDs 5.25%
    6 Month CDs 5.17%
    9 Month CDs 5.13%
    18 Month CDs 5.20%

    Charles Schwab CD Rates Pros and Cons

    ProsCons
    • High CD rates

    • Funds are FDIC-insured

    • No early withdrawal penalties

    • Could lose money if you sell your CD before it reaches maturity
    • Some are callable CDs, meaning the issuer can redeem them before maturity
    • Interest does not compound
    • You must have an existing Charles Schwab brokerage account to open a CD

    Charles Schwab CD Rates FAQs

    Are Charles Schwab CD rates high? Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options.

    Yes, Charles Schwab CD rates are much higher than the national average. You may be able to snag one of the highest rates out there  — but Charles Schwab CDs don't compound interest

    Are Charles Schwab CDs FDIC-insured? Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options.

    Yes, all Charles Schwab brokered CDs are bought through FDIC-insured banking institutions. This means up to $250,000 is protected at each individual bank. 

    How are Charles Schwab CDs different from other CDs? Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options.

    Charles Schwab CDs are brokered CDs, which means buying one lets you open CDs from several banks at once. Brokered CDs tend to have higher interest rates and more flexibility than traditional CDs, as you can sell them at any time. They do not compound interest; when interest is paid, it is deposited into your Schwab brokerage account.

    What is the minimum deposit for a Charles Schwab CD? Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options.

    You'll need to deposit at least $1,000 to open a Charles Schwab CD. 

    How Charles Schwab CD Rates Compare

    Charles Schwab CDs vs. Synchrony Bank CDs

    Synchrony Bank CD rates are lower than those offered by Charles Schwab. At Synchrony, rates range from 2.25% to 5.30% APY, depending on the type of CD and its term length.

    To be clear, we're not exactly comparing apples to apples. Synchrony Bank offers traditional CDs, which means you're only able to purchase CDs from Synchrony — not several CDs from different institutions at once. Still, Synchrony's CDs do compound interest daily, while Schwab's don't compound interest at all. This could make a big difference in your account's long-term earning potential.

    Synchrony offers more variety than Schwab. There are no-penalty CDs, bump-up CDs, and terms range from three months up to five years. There is also a $0 minimum deposit, so you can get started with whatever cash you have on hand. 

    Synchrony Bank Review

    Charles Schwab CDs vs. Discover Bank CDs

    Discover Bank CD rates are lower than Charles Schwab's, with rates ranging from 2.00% to 5.20% APY. They charge early withdrawal penalties that range from three months of interest on shorter-term CDs to up to 24 months of interest on longer terms. Discover also requires a higher minimum deposit ($2,500 versus Schwab's $1,000). 

    That said, Discover has traditional CDs, not brokered ones. As a result, it compounds interest daily — as opposed to Schwab, which does not compound interest.

    Discover Bank Review

    The bottom line: Charles Schwab CD rates are much higher than the national average. They're brokered CDs, which means you can open accounts with different institutions and sell them if you need access to your money early. In some cases, CD rates through Charles Schwab are even higher than the best CD rates at traditional banks and credit unions — but unlike traditional CDs, brokered CDs don't compound interest. This could limit your earning potential.

    Why You Should Trust Us: How We Reviewed Charles Schwab CDs

    To review Charles Schwab CDs, we used Personal Finance Insider's certificate of deposit methodology, which considers interest rates, minimum deposit requirements, CD term variety, and early withdrawal penalties. (Although we eliminated the early withdrawal category for Charles Schwab, since brokered CDs don't charge these penalties.) We also looked at the institution's overall ethics, quality of its mobile app, and customer service. Then we gave the CD a rating between 0 and 5.

    Aly J. Yale is a freelance writer, specializing in real estate, mortgage, and the housing market. Her work has been published in Forbes, Money Magazine, Bankrate, The Motley Fool, The Balance, Money Under 30, and more. Prior to freelancing, she served as an editor and reporter for The Dallas Morning News. She graduated from TCU's Bob Schieffer College of Communication with a focus on radio-TV-film and news-editorial journalism. Connect with her on Twitter or LinkedIn. Read more Read less Compliance Associate Evelyn He is a compliance associate at Business Insider who supports the Personal Finance Insider team. Personal Finance Insider is Business Insider's personal finance section that incorporates affiliate and commerce partnerships into the news, insights, and advice about money that Business Insider readers already know and love.The compliance team's mission is to provide readers with stories that are fact-checked and current, so they can make informed financial decisions. The team also works to minimize risk for partners by making sure language is clear, precise, and fully compliant with regulatory and partner marketing guidelines that align with the editorial team.Before joining Business Insider, she served in various legal and compliance roles in different industries, including the legal and pharmaceutical industries.   Evelyn obtained her M.S. degree in Marketing at Boston University in 2022. Prior to combining and consolidating her knowledge of law and business, she spent one year finishing 1L courses at Suffolk University Law School to further her legal knowledge. She has also completed MBA business law courses while working on her Bachelor of Business Administration in Management at the University of Massachusetts, Amherst. Outside of work, she enjoys spending time with her 14-year-old Shih Tzu named Money, and her 5-year-old Bichon named Tibber. Read more Read less

    Editorial Note: Any opinions, analyses, reviews, or recommendations expressed in this article are the author’s alone, and have not been reviewed, approved, or otherwise endorsed by any card issuer. Read our editorial standards.

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