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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
| Term | APY (Annual Percentage Yield) |
| 1 to 3 months | 5.51% |
| 4 to 6 months | |
| 7 to 9 months | 5.54% |
| 10 to 18 months | 5.55% |
Charles Schwab CD Rates Pros and Cons
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Charles Schwab CD Rates FAQs
Are Charles Schwab CD rates high?
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?
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?
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?
You'll need to deposit at least
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
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
Charles Schwab CDs vs. Discover Bank CDs
Discover Bank CD rates are lower than Charles Schwab's, with rates ranging from
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.
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.