Edward Jones CD Rates for January 2024
Edward Jones offers different certificate of deposit (CD) terms, ranging from three months to 10 years. The brokerage firm’s CD rates are more than comparable with online banks and other leading financial institutions. An Edward Jones CD requires a $1,000 minimum initial deposit.
Here’s a look at the rates on Edward Jones Certificates of Deposit. The rates are current as of January 2, 2024.
How Edward Jones CD rates compare
Edward Jones provides exceptionally competitive CD rates, particularly when compared to the most recent national average rate of 1.86% for a 12-month CD (as of December 18, 2023). However, better CD rates on longer-term lengths are still available, such as Sallie Mae’s 5.50% APY on a 12-month CD.
Here’s a comparison of Edward Jones CD rates to other options:
Edward Jones provides a useful glossary of CD terminology. You can earn a relatively high APY as a saver at most term lengths. The variety of terminology may even encourage you to construct a CD ladder after running the figures with a CD calculator.
However, searching around at several banks and credit unions might help you lock in the best rates for the sort of CD you choose. Some CDs, such as 10-year CDs and jumbo CDs, are scarce, which may result in less appealing APYs.
CDs by Edward Jones
To open an Edward Jones brokered CD, you must first open a brokerage account with the firm. Edward Jones, as a brokerage firm, sells CDs from a variety of banks, allowing you to diversify your CD portfolio. An Edward Jones CD requires a $1,000 starting deposit.
Edward Jones CDs offer reasonable rates that compete with leading online banks.
With Edward Jones brokered CDs, early withdrawals are not authorized, but you may be able to sell your CDs on the secondary market if you require access to the cash. After the initial deposit, you cannot add funds to your CD.
Edward Jones CD interest does not compound. Instead, interest is credited to your Edward Jones account automatically. Interest is paid at maturity for CD durations of up to 12 months. Interest is paid monthly, quarterly, semiannually, or annually and at maturity for CD maturities longer than 12 months. CDs do not automatically renew when they reach maturity.
A $1,000 minimum deposit is required to start an Edward Jones CD, and durations range from 3 to 120 months.
CD rates at Edward Jones can be significantly higher than those found elsewhere. However, there are certain important factors you should be aware of before opening an account.
About Edward Jones
Edward Jones is a full-service financial brokerage firm with offices in the United States and Canada. Edward Jones, founded in 1922, offers a wide range of investment services and products, including financial and retirement planning, estate planning, education savings plans, and life insurance.
How to open an Edward Jones CD
To obtain an Edward Jones CD, you must first contact an Edward Jones financial counselor. On the Edward Jones website, you cannot sign up for one of these CDs by yourself.
You can utilize the matching function at Edward Jones to find a financial advisor. Essentially, this is answering several questions to find an advisor who may be a good fit for your needs. Another alternative is to look for an advisor based on your area or the name of a certain advisor.
If you decide to deal with a financial advisor to get these CD rates, make sure they are looking out for your best interests. Choosing a financial advisor entails assessing some criteria, including fiduciary responsibility, fees, and commissions. Once you’ve agreed to work with your new financial advisor, they can assist you in gaining access to the Edward Jones CDs.
Early Withdrawals Are Not Permitted
A CD locks your money into the account until the maturity date. However, most banks and credit unions permit early withdrawals in exchange for a penalty or forfeiture of a portion of the earned interest.
Edward Jones’ CDs work uniquely. Early withdrawals are not authorized because they are brokered CDs. The sole exception is in the event of the CD owner’s death or if the owner has been found incompetent, which means the owner has been declared incapable of managing their affairs. In such cases, an early withdrawal is typically accepted without penalty. Otherwise, you will be unable to access the funds in the CD until the maturity date.
CDs Are Not Automatically Renewed
Once the CD hits its maturity date, banks usually allow you a short grace period. You have a few days to determine whether you want to transfer cash or start a new CD. However, if you do nothing, the bank will automatically renew the CD and lock it into a new term.
With Edward Jones, you must keep track of the maturity date and devise your strategy. CDs from Edward Jones are not automatically renewed or rolled over into new CDs; instead, the monies are credited to your Edward Jones account.
Interest Does Not Compound
Most interest-bearing CDs compound interest, which means you earn interest on interest already earned. This is not the case with CDs obtained through Edward Jones.
The interest on CDs issued by Edward Jones is not compounded. With primary market CDs, interest is calculated based on the number of days the account has been open and the annual percentage rate (APY).
Compare Savings Account Rates
Edward Jones, as a broker, can provide higher APYs than most banks and financial organizations. While other banks promote greater rates for specific terms, Edward Jones’ CDs feature higher-than-average rates across the board.
Some banks have no minimum deposit requirements, whereas Edward Jones requires a $1,000 deposit.
How Much Can You Earn with an Edward Jones CD?
In contrast to other investments, you can determine exactly how much you will earn from a CD. Earnings on Edward Jones CDs are computed differently than on regular certificates of deposit because they do not compound.
Use the calculator below to see how much you can make with an Edward Jones CD. Simply enter your deposit amount, the term length of the CD, and the APY, then click Calculate.
Because interest on Edward Jones CDs does not compound regularly, the interest schedule beneath the calculator may not correspond to your real earnings. The value after the term, on the other hand, will be correct.
Are Edward Jones CD Rates Competitive?
According to the FDIC, the average rate on 12-month CDs in August 2023 was 1.76%.
CD rates were substantially higher when opened through Edward Jones.
Although Edward Jones provides above-average CD rates, the broker does have some restrictions and conditions. Check out the best CD prices before opening a CD with Edward Jones to ensure you’re getting the proper CD for your needs.
How Edward Jones CDs Stack Up
According to FDIC data, Edward Jones CD rates are among the best in the market and substantially outperform the national average.
Remember that you must have an Edward Jones brokerage account to open a CD with the firm. If you already have a brokerage account with Edward Jones, CDs are a terrific way to maximize savings, but others may find equivalent CD rates elsewhere that don’t require you to have a brokerage account. Compare CD rates from several banks and credit unions to find the best APYs.
Is Edward Jones FDIC insured?
Edward Jones, being a brokerage firm, is not FDIC-insured in the same way that banks and credit unions are. CDs from Edward Jones, on the other hand, are issued by banks and are FDIC-insured for up to $250,000 per depositor, per depository institution, and per account ownership type.
Does Edward Jones charge a fee for CDs?
Edward Jones CDs have no fees associated with them. Edward Jones does not allow early withdrawals on its brokered CDs, therefore there are no early withdrawal costs to worry about.
What is a brokered CD?
A brokered CD is a certificate of deposit obtained via an investment brokerage firm rather than a bank. Interest on brokered CDs does not often compound like interest on ordinary CDs, but they frequently earn greater APYs than standard CDs.
Do you need an Edward Jones account to open a CD?
Yes. To open a CD with the investing firm, you must have an Edward Jones brokerage account. A $1,000 minimum initial deposit is required for Edward Jones CDs.
What is the CD secondary market?
The CD secondary market is a marketplace where owners of brokered CDs can sell them to other investors before the maturity date of the CD. Money in a brokered CD is normally inaccessible until the account matures, but the secondary market allows you to sell a brokered CD if you require cash sooner.
Does Edward Jones Charge Fees to Open a CD?
For CDs, Edward Jones charges fees, selling concessions, and commissions. The amount you pay is determined by Edward Jones’ participation in the transaction:
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When Edward Jones acts as the principal
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When Edward Jones acts as the agent
1. When Edward Jones acts as the principal:
You are opening a CD through Edward Jones’ inventory when you use main transactions. When Edwards Jones is the principal, a selling concession is included in the initial offering price.
2. When Edward Jones acts as the agent:
If Edward Jones is the agent, the company will help you open a CD with another financial institution or brokerage firm. When Edward Jones is the agent, you pay a commission to the firm for the transaction.
If you buy or sell secondary CDs or previously issued CDs, you may be charged a commission of up to 2% of the purchase price.
Your Edward Jones financial advisor will receive a share of any commissions, selling concessions, or fees in any CD transactions.