Yes, Charles Schwab offers CDs through its brokerage platform

Charles Schwab does offer certificates of deposit, but not in the traditional way. You cannot open a CD directly with Schwab itself. Instead, Schwab acts as a broker and connects you to CDs issued by other banks and credit unions through its CD marketplace. When you buy a CD through Schwab, you own a CD from the actual issuing institution—Schwab is the intermediary handling the transaction.

This setup matters because it changes how your money is protected and what rates you can access. CDs purchased through Schwab are covered by FDIC insurance up to $250,000 per issuing bank, so if you buy CDs from five different banks through Schwab, each one gets its own $250,000 protection. You also get access to rates from hundreds of banks and credit unions, not just one institution's offerings.

Key Takeaways

  • Schwab CDs come from other banks and credit unions, not from Schwab itself, and each CD is FDIC-insured up to $250,000 per issuing institution.
  • You can search and compare rates across hundreds of banks without opening separate accounts, all through your Schwab brokerage account.
  • Schwab charges no commissions or fees to buy or sell CDs on its platform, though early withdrawal penalties from the issuing bank still apply.
  • You can sell a CD before maturity on Schwab's secondary market, though the price you receive depends on interest rate movements and may be less than you paid.
  • Schwab also offers its own money market funds as an alternative to CDs for cash that you want to keep liquid.

How to find and buy CDs through Schwab

Log into your Schwab account and navigate to the Investments section, then select Fixed Income or CDs. Schwab's CD search tool lets you filter by term length (3 months to 5 years or longer), minimum deposit amount, and whether you want FDIC or NCUA insurance (credit union CDs). The platform displays the annual percentage yield (APY) for each option, sorted from highest to lowest.

Once you find a CD that matches your timeline and rate, you can purchase it directly from the search results. The transaction settles within one business day, and the CD appears in your account. You do not need to fill out a separate application or open an account with the issuing bank—Schwab handles all of that behind the scenes. Your money is held by the issuing institution, not by Schwab.

CD rates and terms available through Schwab

The rates you see on Schwab's platform vary daily because they come from different banks competing for deposits. A 1-year CD might range from 4.00% to 5.25% APY depending on which bank issues it, so shopping across multiple institutions through Schwab can mean a meaningful difference in earnings. Schwab updates its rates throughout the day as banks adjust their offerings.

Term lengths typically start at 3 months and go up to 5 years, with some banks offering longer terms. Minimum deposits usually start at $1,000, though some banks require $2,500 or $5,000. If you have a smaller amount to invest, you may find fewer options, but Schwab's marketplace usually has at least a few banks willing to accept lower minimums.

Selling a CD before it matures

One advantage of buying CDs through Schwab is the ability to sell them on the secondary market before the maturity date. If you need your money back early, you can list your CD for sale rather than paying an early withdrawal penalty to the issuing bank. However, the price you receive depends on how interest rates have moved since you bought it.

If interest rates have risen, your CD—which pays a lower rate—will sell at a discount (you receive less than you paid). If rates have fallen, your CD will sell at a premium (you receive more than you paid). There is no may provide your CD will sell quickly or at the price you want. Schwab does not charge a commission to sell, but you bear the market risk of the sale price.

Comparing Schwab CDs to other options

Schwab CDs compete directly with CDs from online banks, credit unions, and traditional banks. The main advantage of using Schwab is convenience—you can compare hundreds of rates in one place without opening multiple accounts. If you already have a Schwab brokerage account, adding CDs takes minutes.

The trade-off is that you are buying from other institutions, not from Schwab itself. Some people prefer the simplicity of opening a CD directly with a single bank. Others prefer Schwab's approach because it lets them keep all their investments and savings in one login. High-yield savings accounts and money market funds are also worth comparing; they offer lower rates than CDs but let you withdraw money without penalty at any time.

FDIC insurance and account protection

Each CD you buy through Schwab is insured separately by the FDIC, up to $250,000 per issuing bank. This means if you buy a $100,000 CD from Bank A and a $100,000 CD from Bank B through Schwab, both are fully protected. If you buy two CDs from the same bank totaling $300,000, only $250,000 is covered.

The insurance covers the principal and accrued interest. It does not cover losses from selling a CD at a discount on the secondary market—that is a market loss, not a bank failure. Schwab itself is a brokerage firm regulated by the SEC and FINRA, not a bank, so your cash and securities at Schwab are protected by SIPC (Securities Investor Protection Corporation) up to $500,000 per account, separate from FDIC coverage.

Frequently Asked Questions

Can I buy a CD through Schwab if I don't have a brokerage account?

No. You must have an active Schwab brokerage account to purchase CDs through their marketplace. Opening a brokerage account is free and takes about 10 minutes online. You do not need to fund it with a minimum amount to open it.

What happens if the bank that issued my CD goes under?

Your CD is protected by FDIC insurance up to $250,000. If the bank fails, the FDIC takes over and honors your CD at its original terms, or you receive your insured balance. This protection applies whether you bought the CD directly from the bank or through Schwab.

Are there fees to buy or sell CDs on Schwab?

Schwab charges no commissions or fees to buy CDs. If you sell a CD on the secondary market before maturity, Schwab also charges no commission. However, you may receive less than you paid if interest rates have risen, which is a market loss, not a fee.

Can I reinvest my CD automatically when it matures?

Yes. When your CD matures, Schwab typically gives you a grace period (usually 10 days) to decide what to do with the money. You can reinvest in a new CD, move it to a money market fund, or transfer it elsewhere. You can set up automatic reinvestment, though the rate on the new CD will be whatever is current at maturity, not locked in today.

How do CD rates on Schwab compare to rates at my bank?

Schwab's rates come from multiple banks, so some will be higher and some lower than your current bank's rates. Use Schwab's search tool to compare directly. Online banks and credit unions often offer higher rates than traditional brick-and-mortar banks, and Schwab's marketplace includes both, so you can usually find competitive options.