What Edward Jones CDs offer and how rates are set

Edward Jones offers certificates of deposit (CDs) through its brokerage platform. A CD is a savings product where you deposit money for a fixed period — typically three months to five years — and receive a set interest rate in return. Edward Jones does not set these rates itself; they come from banks and credit unions that issue the CDs, and Edward Jones acts as the broker connecting you to them.

The rate you receive depends on three things: the length of time you lock in your money, the current interest rate environment, and which bank or credit union is issuing the CD. Longer terms usually pay higher rates than shorter ones. When interest rates rise across the economy, new CDs pay more; when they fall, new CDs pay less. Edward Jones displays rates from multiple issuers so you can compare before you commit.

You do not have to use Edward Jones to buy a CD. You can open one directly at a bank or credit union, often with no broker involved. The advantage of going through Edward Jones is access to a wider range of issuers and rates in one place, plus the ability to hold the CD in a brokerage account alongside other investments.

Key Takeaways

  • Edward Jones CDs come from banks and credit unions, not from Edward Jones itself, so the rate depends on the issuer and current market conditions.
  • You lock your money away for a set term — usually three months to five years — and cannot withdraw it early without paying a penalty.
  • Rates vary by term length and issuer, and Edward Jones lets you compare multiple options before you commit your money.
  • If you withdraw before the CD matures, you will owe an early withdrawal penalty that reduces your earnings or principal.

How to find current rates at Edward Jones

Edward Jones does not publish rates on a public website. To see what rates are available, you must contact an Edward Jones financial advisor directly — either by phone, in person at a local branch, or through your online account if you already have one. The advisor can show you CDs from multiple issuers and the rates each one is offering right now.

When you call or visit, tell the advisor how long you want to lock your money away and how much you plan to deposit. They will show you the options available at that moment. Rates change frequently, sometimes daily, so the rate you see today may not be the same tomorrow. If you find one you want, you can usually complete the purchase the same day.

Maturity terms and what happens when your CD ends

Edward Jones CDs come in standard terms: three months, six months, one year, two years, three years, and five years are common, though other lengths may be available. The longer the term, the higher the rate typically is — a five-year CD usually pays more than a one-year CD because you are giving up access to your money for longer.

When your CD reaches its maturity date, the bank returns your principal plus the interest you earned. At that point, you have a choice: you can withdraw the money, or you can let it roll over into a new CD at whatever rate is current at that time. If you do nothing, many CDs automatically roll over, so check the terms to know what will happen. If rates have fallen, you may want to withdraw and move your money elsewhere rather than accept a lower rate on the new CD.

Early withdrawal penalties and what they cost

If you need your money before the CD matures, you can withdraw it, but you will pay a penalty. The penalty amount varies by issuer and term length. A three-month CD might have a penalty of one month's interest; a five-year CD might have a penalty of six months' interest or more. The longer the term, the steeper the penalty usually is.

The penalty comes out of your earnings first. If you have earned $200 in interest and the penalty is $150, you get back your principal plus $50. If the penalty exceeds your earnings, it comes out of your principal, so you get back less money than you deposited. Before you buy a CD, ask the Edward Jones advisor what the early withdrawal penalty is — it should be stated in the CD terms you receive.

FDIC insurance and what it covers

CDs issued through banks that are members of the Federal Deposit Insurance Corporation (FDIC) are insured up to $250,000 per depositor, per bank, per account type. This means if the bank fails, the FDIC will return your principal and accrued interest up to that limit. Most banks that issue CDs through Edward Jones are FDIC-insured, but not all are — some may be credit unions insured by the National Credit Union Administration (NCUA) instead.

If you are depositing more than $250,000, you can spread it across CDs from different banks to stay within the insurance limit at each one. Edward Jones can help you structure this. Ask the advisor whether each CD issuer is FDIC or NCUA insured before you commit your money.

How CD rates compare to other savings options

CDs typically pay more than a regular savings account because you are agreeing to lock your money away. High-yield savings accounts, money market accounts, and Treasury bills are other options that may pay competitive rates. The trade-off with a CD is that you cannot access your money without a penalty, whereas savings accounts let you withdraw anytime.

If you think you might need the money within the next year or two, a high-yield savings account or money market account may be safer than a CD. If you are confident you will not touch the money, a CD locks in a may provide rate for the full term, which protects you if rates fall. Talk to an Edward Jones advisor about your timeline and goals to decide which product fits your situation.

Frequently Asked Questions

Can I buy a CD from Edward Jones if I do not have an account there?

You will need to open an account at Edward Jones to purchase a CD through them. The process is straightforward and can usually be done in person or over the phone with an advisor. You can open an account with a small initial deposit and then fund the CD separately.

What happens if I need my money before the CD matures?

You can withdraw early, but you will owe an early withdrawal penalty that reduces your earnings or principal. The penalty amount depends on the term length and the issuer. Before you buy, ask the Edward Jones advisor what the penalty is so you know the cost if you need the money sooner than expected.

Are Edward Jones CDs safe?

CDs issued by FDIC-insured banks are protected up to $250,000 per depositor per bank. Most CDs sold through Edward Jones carry this protection. The rate is also may provide for the full term, so you know exactly what you will earn. The main risk is that you cannot access your money without a penalty if your circumstances change.

How often do Edward Jones CD rates change?

Rates change frequently, sometimes daily, based on what banks and credit unions are offering. The rate you lock in when you buy the CD stays the same for the entire term. If you are shopping around, call or visit an advisor to see current rates, as they may be different from what you saw a few days ago.

Can I move a CD from Edward Jones to another bank?

Once you buy a CD, it is issued by the bank or credit union, not by Edward Jones. You cannot transfer it to another institution before it matures without withdrawing it early and paying the penalty. When it matures, you can move the money anywhere you want with no penalty.