Edward Jones CD rates are competitive with several of the best CD rates out there.
If you're looking to use CDs as part of your savings strategy, Edward Jones' brokered CDs may be worth considering. However, brokered CDs work differently than traditional CDs, and you must have another account with Edward Jones to open a CD.
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. 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, which could be ideal for making a CD ladder.
Here are Edward Jones CD rates for some of the most popular terms:
| CD Term | APY (Annual Percentage Yield) |
| 3 months | 4.25% |
| 6 months | 4.30% |
| 9 months | 4.20% |
| 1 year | 4.25% |
| 18 months | 4.20% |
| 2 years | 4.30% |
| 30 months | N/A |
| 3 years | 4.25% |
| 4 years | 4.25% |
| 5 years | 4.25% |
| 7 years | N/A |
| 10 years | N/A |
Overview of Edward Jones CDs
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.
Edward Jones CD Rate Pros and Cons
Edward Jones CD Rate Pros
- High interest rates
- Many term options
- No early withdrawal penalties
- FDIC-insured
Edward Jones CD Rate 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 as high rates as at Edward Jones. While Edward Jones CD rates go up to 4.30% APY, Ally pays 2.90% to 4.05% APY. While these are still competitive rates overall, you can find higher rates elsewhere.
One thing Ally Bank does have going for it is its wide range of CD term options 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.
Edward Jones CDs vs. Capital One 360 CDs
Capital One CD rates are also lower than Edward Jones' rates. Capital One 360 CDs pay 3.50% to 4.00% 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.
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.
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, security, miscellaneous features,mobile app quality, and customer service.
We use a weighted average to get our star rating, which means we weigh certain features, like interest rates and fees, at a higher weight percentage than others. We understand that these areas can more heavily impact a person's overall banking experience.
Edward Jones CD Rates FAQs
Edward Jones CDs pay up to 4.30% APY, which is significantly higher than the national average.
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.
Edward Jones CDs have a $1,000 minimum opening deposit.
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.
Some Edward Jones CD rates are higher than the top traditional CD rates from the best online banks and credit unions out there right now — but unlike traditional CDs, Edward Jones' brokered CDs do not compound interest.
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.
