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APY = Annual Percentage Yield.
Charles Schwab CD rates are some of the best in the business. These CDs offer you high rates and the power to trade your CDs on a secondary market. It's a great option for investors with at least $1,000 to invest.
In our Charles Schwab CD review, we'll dive into the details so you can decide whether opening a CD account with Schwab is right for you.
Our team of experts assessed 100+ banking institutions
We evaluate all banking institutions across the same 4 key criteria: annual percentage yield (APY), brand reputation, fees and minimum requirements, and additional perks
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Charles Schwab CD rates for 2025
Rates as of March 6, 2025
APY = Annual Percentage Yield
Charles Schwab CD
MINIMUM DEPOSIT $1,000
3 Mo. APY
6 Mo. APY
1 Yr. APY
1.5 Yr. APY
2 Yr. APY
3 Yr. APY
4 Yr. APY
5 Yr. APY
up to 4.37%
up to 4.29%
up to 4.55%
up to 4.30%
up to 4.60%
up to 4.60%
up to 4.60%
up to 4.65%
Is a high-yield savings account a better option for you?
A high-interest savings account offers rates competitive with the best CDs accounts, but without having to lock your money away for months or even years at a time. Here are some top-rated high-yield savings account options from our experts.
4.00/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs. = Best = Excellent = Good = Fair = Poor
3.70%
Rate info
3.70% annual percentage yield as of April 5, 2025. Terms apply.
4.50/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs. = Best = Excellent = Good = Fair = Poor
4.10% APY for balances of $5,000 or more
Rate info
4.10% APY for balances of $5,000 or more; otherwise, 0.25% APY
Min. to earn: $100 to open account, $5,000+ for max APY
Earn a bonus of at least $225 after a one-time deposit of $25,000+.
Transfer a one-time deposit of $25,000-$49,999.99 for a bonus of $225. Transfer a one-time deposit of $50,000+ for a bonus of $300. Account must be opened with code PS2025 while this promotion lasts, and funded within 30 days. Bonus will be fulfilled within 60 days from the funding date. There is no period of time where the customer will be required to maintain the funds. Account must be open when bonus is credited. One bonus per account and primary customer. Bonus will be credited into the Platinum Savings Account that fulfills the funding requirement. Funding can be deposited all at once or incrementally.
4.50/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs. = Best = Excellent = Good = Fair = Poor
3.70%
Rate info
See Capital One website for most up-to-date rates. Advertised Annual Percentage Yield (APY) is variable and accurate as of Feb. 6, 2025. Rates are subject to change at any time before or after account opening.
Charles Schwab offers brokered CDs, which differ from traditional bank CDs. For one, Charles Schwab doesn't issue the CD itself but rather purchases it (along with a bulk of others) from a CD provider, like a bank.
Because it's not the CD issuer, Charles Schwab can shop around at many different banks, find the best CD rates, buy them in bulk, then offer them to you, the client.
Minimum Deposit
$1,000
Range of Term Lengths
3 months to 10 years
Compounding Schedule
No compound interest; only simple interest
Early Withdrawal Penalty
N/A
Grace Period
N/A
Data source: Charles Schwab.
Charles Schwab CD pros and cons
Since Schwab offers CDs through the Schwab brokerage account, CDs don't earn compound interest. Plus, instead of withdrawing early and paying fees, you must sell CDs on the secondary market to cash out fast.
Let's take a look at some of the pros and cons of these CDs.
Pros
Competitive CD rates
Wide variety of term lengths
Potential to expand FDIC insurance
Cons
Charles Schwab brokerage account required
Money grows by simple interest
Minimum deposit of $1,000
Not easy to liquidate
How much can you earn with a Charles Schwab CD?
Rates change, but you can lock in a great rate by opening a CD account. Here's a table illustrating what potential earnings could look like if you deposited $1,000 into a Charles Schwab CD.
The numbers in the table below may not be accurate to current APYs and are for example purposes only.
Term
APY
Earnings
3 months
5.51%
$13.78
6 months
5.47%
$27.35
1 year
5.40%
$54.00
1.5 years
5.15%
$77.25
2 years
5.25%
$105.00
Data source: Author's calculations.
Since Charles Schwab CDs don't pay compound interest, the CD rate will apply to your principal only, not to any interest you've built up. This is common for brokered CDs, but differs from how bank CDs work, which often calculate interest on a more profitable compound model.
Is a Charles Schwab CD safe?
Charles Schwab CDs are safe places to put your money. All Schwab's CD banking partners are FDIC insured, so you're covered up to $250,000 per bank. This means you can protect more than $250,000 by spreading your money across Schwab partner banks.
How to open a Charles Schwab CD
You can open a Charles Schwab CD by following these steps:
Your Social Security number (or Tax Identification number)
Your employer's name and mailing address (if it has one)
Your email address
Your phone number
2. Log into your Charles Schwab account
Navigate to the "Trade" dropdown and click "CDs."
3. Search for CDs
You can filter CDs offered by partner banks. All partner banks are FDIC insured.
4. Choose a CD to buy
Click the "Buy" button to choose the CD you want.
5. Enter the amount you want to invest
You must invest a minimum of $1,000 and in increments of $1,000.
6. Review your order
Check that everything looks good by clicking "Review Order." Double-check the estimated total cost to be sure you entered the right amount.
7. Complete your purchase
Click "Place Order" to complete your purchase and review any important documents.
Who is a Charles Schwab CD right for?
A Charles Schwab CD is right for investors who want to invest in multiple high-paying bank CDs through one broker. If you're a current Schwab customer, you can link to your current account.
Other Charles Schwab CD accounts
Charles Schwab also offers the following CD accounts:
At Motley Fool Money, our certificates of deposit (CDs) ratings primarily focus on annual percentage yield (APY) and early withdrawal penalty fees. Our highest-rated CDs generally include competitive APYs without complex qualification tiers, low withdrawal fees, reliable brand trust and reputation, and ease of use.
$1,000 is the minimum deposit for Charles Schwab CDs.
There is no fee for purchasing a Charles Schwab CD. However, there is a $1 fee per CD you sell on the secondary market, with a minimum of $10 and a maximum of $250. (Secondary market sales are optional.) Broker-assisted CD trades cost $25 per trade, on top of other fees.
No, you cannot close a Charles Schwab CD early, but you can resell your CD on the secondary market. On one hand, that means you can potentially sell any of your CDs at any time, possibly for a profit. On the other hand, sometimes there are no buyers, and you may end up selling your CD at a loss. Depending on market conditions, you may be unable to sell your CD at all.
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Terms may apply to offers listed on this page.
APYs are subject to change at any time without notice.
American Express is an advertising partner of Motley Fool Money. Ally is an advertising partner of Motley Fool Money. SLM is an advertising partner of Motley Fool Money. Discover Financial Services is an advertising partner of Motley Fool Money. Synchrony Financial is an advertising partner of Motley Fool Money. Charles Schwab is an advertising partner of Motley Fool Money. Citigroup is an advertising partner of Motley Fool Money. Cole Tretheway has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Goldman Sachs Group, Interactive Brokers Group, PNC Financial Services, and Target. The Motley Fool recommends Barclays Plc, Charles Schwab, and Discover Financial Services and recommends the following options: short December 2024 $67.50 calls on Charles Schwab. The Motley Fool has a disclosure policy.
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