Edward Jones is a financial advisory firm and investment firm. It offers a variety of products and services, such as 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 method allows you to open CDs with several institutions at once.
Brokered CDs usually have higher interest rates than traditional CDs, and they don't charge early withdrawal penalties. If you needed the money before your term ends, you would sell your CD on the secondary market.
Edward Jones' brokered CDs may be worth considering for those who want to use them as part of their savings strategy. Here's what you should know about Edward Jones CD rates, terms, and other details before you open an account.
Edward Jones' CD rates are much higher than the national average, and some terms are competitive with the best CD rates out there. However, banks with the best traditional CD rates compound interest quarterly, monthly, or even daily. Edward Jones does not compound interest on its CDs because their accounts are brokenred CDs.
You must have a bank account with Edward Jones to open a CD. 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.
As far as term lengths go, Edward Jones CDs run the gamut. The firm offers terms from three months to 10 years. Here are Edward Jones CD rates for some of the most popular terms:
Edward Jones' CD rates aren't nearly as high as at Ally Bank. While Edward Jones CD rates go up to 5.55% APY, Ally pays 3.00% to 5.15% APY. While they're still competitive, you can find higher rates at Edward Jones and other locations.
Ally Bank's wide selection of CD terms and options make it a worth-advantage option for investors. Ally High Yield CDs have a term of three months to five years. The Ally Raise Your Rate CD is available for a two-year or four-year term. If your rate rises during the course of your term, you can increase your rate once or twice. Ally has also no-penalty CDs, though Edward Jones brokered CDs have no penalties either.
Ally Bank CDs compound interest daily, while Edward Jones CDs compound interest at all. Capital One CD rates are also lower than Edward Jones' rates. Capital One 360 CDs will pay 4.10%, 5.25% APY. This is compared to the national average, but lower than the best CD rates right now.
While Capital One 360 CDs have a minimum deposit of $0, it's a standout feature. Interest also compounded monthly, and Capital One 360 provides 24/7 customer support. But early withdrawal penalties range from three to six months of interest.
Why Should You Trust Us: Have you viewed Edward Jones' CDs?
To review Edward Jones CDs, we employed Personal Finance Insider's certificate of deposit methodology, which evaluates interest rates, minimum deposit requirements, CD term variety, the company's overall ethics, mobile app quality, and customer service. We assign each category a value on a scale of one to five, then average the scores together to reach an overall CD rating.
We usually consider early withdrawal penalties, but we omitted this category when we review Edward Jones CDs. Although they are covered by early withdrawal penalties, brokered CDs do not carry early withdrawal penalties as a general rule.
Aly J. Yale, a freelance real estate, mortgage, and housing market expert, is known for her work in real estate, mortgage, and real estate. She graduated from TCU's Bob Schieffer College of Communication with a focus on radio-TV-film and news-editorial journalism. Evelyn is a Compliance Associate at Insider who supports the Personal Finance Insider team. The goal of the compliance team is to provide readers with stories that are fact-checked and current, so they can make informed financial decisions. The team strives to minimize the risk for partners by ensuring language is clear, precise, and fully compliance with regulatory and partner marketing guidelines that align with the editorial team. She served in various legal and compliance roles in various industries, such as the legal and pharmaceutical industries, before joining Insider. Evelyn obtained her M.S. In addition to combining and consolidating her knowledge of law and business, she spent one year completing 1L courses at Suffolk University Law School to enhance her legal knowledge. During her MBA degree at the University of Massachusetts Amherst, she has also pursued MBA business law courses. She also enjoys spending time with her 14-year-old Shih Tzu named Money and her 6-year-old Bichon named Tibber.