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| Edward Jones CD Key Features | |
|---|---|
| APY Range | 3.75%–3.95% |
| Term Range | 3–120 months |
| Minimum Deposit | $1,000 |
| Early Withdrawal Penalty | Early withdrawals may not be not permitted |
The minimum amount to open an Edward Jones CD is $1,000, and terms range from 3 to 120 months.
Rates for CDs at Edward Jones can be much higher than you’ll find elsewhere. However, there are some key details you should know before opening an account.
Pros and Cons of Edwards Jones CDs
Pros Explained
- Significantly high CD yields: Edward Jones CDs offer rates that are significantly higher than the average CD rate, so you can earn greater returns.
- Flexible terms: You can find a wide range of terms with Edward Jones CDs for a variety of investing time lines. Terms range from three to 120 months.
Cons Explained
- CDs are not automatically renewed: With Edward Jones, you have to make a note of the maturity date and come up with a plan on your own. Edward Jones’ CDs are not automatically renewed or rolled over into new CDs—the funds will automatically be credited to your Edward Jones account.
- Interest does not compound: Interest on Edward Jones’ CDs is not compounded. With CDs opened on the primary market, interest is calculated based on the actual number of days the account is open and the annual percentage rate (APY).
- No early withdrawals: Because they are brokered CDs, early withdrawals are not permitted at all. The only exception is in the event of the death of the CD owner or if the owner has been adjudicated incompetent, meaning the owner is declared unfit to manage their affairs.
Warning
The only way to withdraw money from an Edward Jones CD before its maturity date is to sell it on the secondary market. There is no guarantee that the CD will sell, or it may sell for less than the original principal.
How to Invest in Edward Jones CDs
With many banks, you can open a new CD and fund it online in a matter of minutes. However, Edward Jones works differently. To access Edwards Jones’ CDs, you must first choose a financial advisor. To find one, you can:
- Take the quiz: Edward Jones has a brief questionnaire about your current finances and goals. The company uses that information to match you with a suitable financial advisor.
- Search for local offices: You can use the locator tool to find financial advisors in your area available for in-person appointments or virtual consultations.
- Search by name: If you already know the name of the person you want to work with, you can search for them.
Once you’ve found an advisor you want to work with:
- Make an appointment: You will meet with the advisor to discuss your finances and investment options. If you decide to proceed, you’ll fill out paperwork and provide your banking details to open a new CD.
- Wait for an update: Your financial advisor will open an account on your behalf, and will provide you with online login details so you can view your account information.
Other Edward Jones Savings Options
Edward Jones has a range of investment and deposit products in addition to its certificates of deposit. It’s other fixed-income investments include municipal bonds, corporate bonds, U.S. Treasuries, and agency bonds.
Its savings accounts include:
- Insured Bank Deposit program
- Flex Funds account
- Income Manager account
About Edward Jones
Edward Jones has been in operation since 1922, and it’s headquartered in St. Louis, Missouri. It operates over 15,000 branch office locations throughout the U.S. and Canada. Customers can open retirement accounts, save for college, and work with a financial advisor to develop wealth management strategies.
Investors can choose from mutual funds, exchange-traded funds (ETFs), and stocks, but Edward Jones also offers lower-risk options. Edward Jones is not a direct CD provider; instead, it’s a broker that connects investors with CDs from many banks and financial institutions to get the best rates.
Alternatives to Edward Jones CDs
- Credit unions: You must become a member of a credit union, but these not-for-profit financial institutions often offer higher rates on savings accounts than local banks. See the best savings account rates available today, many of which are provided by credit unions.
- Online banks: Online banks may offer easier-to-meet deposit requirements to earn higher interest rates. Take a look at the best banks for savings accounts for more information.
- Investment brokerages: You could potentially earn more money by investing with a brokerage, but you’ll also have a higher potential for losses as well.
- U.S. Treasuries: You may be able to earn more than savings accounts offer with a Treasury bill or bond, but without as much risk as some other investments.
Other Brokered CD Providers
Edward Jones, Fidelity, and Charles Schwab are three of the largest full-service financial services companies in the country, and they all offer brokered CDs. You’ll likely find similar offers among them, but chances are some of these CDs fit more easily into your budget and financial plan. Compare CDs from all three to find the right option for you.
Edward Jones vs. Schwab
Edward Jones and Schwab CDs have the same investment minimum of $1,000, but Edward Jones has more CD term options to choose from. Schwab’s maximum CD term is just 24 months, while Edward Jones has terms as long as 60 months.
Edward Jones vs. Fidelity
Fidelity CDs offer terms ranging from 3 to 60 months. Like Edward Jones, Fidelity’s minimum investment is $1,000 for a whole CD, but it also offers fractional CDs for as little as $100.
Frequently Asked Questions (FAQs)
How Do You Open a CD Account at Edward Jones?
Unlike most banks and financial institutions, which allow you to open a new CD online, Edward Jones requires extra steps.
To open a CD, you must contact a local Edward Jones financial advisor. You will likely need to meet with your Edward Jones advisor in person and complete paperwork in their office before you can open a CD.
To get started, use Edward Jones’ financial advisor search tool to find an advisor near you.
How Do I Log In to My Edward Jones CD Account?
After you meet with an Edward Jones financial advisor and decide to purchase a CD, the advisor will open the CD for you. They will send you an email with a link and details on how to create an online account. Once you create an account, you can log in at any time at EdwardJones.com/login.
Do Edward Jones CDs Have a Minimum Investment?
To open a new CD through Edward Jones, you must have at least $1,000 available for a minimum deposit.
Are Edward Jones CDs FDIC-Insured?
Yes, CDs opened through Edward Jones are backed by FDIC deposit insurance. Your account is covered up to a maximum of $250,000.
Does Edward Jones Charge Fees to Open a CD?
Edward Jones does charge fees, selling concessions, and commissions for CDs. What you pay depends on Edward Jones’ role in the transaction:
- When Edward Jones acts as the principal: With principal transactions, you are opening a CD through Edward Jones’ own inventory. When Edwards Jones is the principal, it receives a selling concession that is incorporated into the initial offering price.
- When Edward Jones acts as the agent: If Edward Jones is the agent, the firm facilitates opening a CD with another financial institution or brokerage. When Edward Jones is the agent, you pay the firm a commission for the transaction.
If you buy or sell secondary CDs, meaning CDs that were previously issued, you may pay a commission as high as 2% of the dollar amount you buy. In all CD transactions, your Edward Jones’ financial advisor will receive a percentage of any commissions, selling concessions, or fees.
Are Edward Jones CD Rates Competitive?
Typical rates for CDs opened through Edward Jones are generally significantly higher than the national average rate.
Although Edward Jones offers higher-than-average CD rates, the broker does have some limitations and requirements. Before opening an account with Edward Jones, check out the best CD rates to ensure you’re picking the right CD for your needs.
