Review: Charles Schwab Certificate of Deposit Interest Rates 

Conor Keenan Author Bio By: Conor Keenan  Last updated on March 17, 2024
Conor Keenan is's co-founder. His work in personal finance has been featured by MSN, CNN, AOL, Fox News, Yahoo News & many more.

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Read our review & open a new​ certificate of deposit with confidence.  Charles Schwab and other CD offers on this page are FDIC insured up to $250,000 per depositor.  Fund your new account & take advantage of the power of compound interest today!

CD rates available through Schwab CD OneSource

See below for a selection of CD rates

Current CD rates available through Schwab CD OneSource
Maturity  3 Month CDs  6 Month CDs  9 Month CDs  1 Year CDs  18 Month CDs 2 Year CDs
Rates up to 5.41% APY 5.37% APY  5.33% APY  5.36% APY 5.25% APY 5.25% APY
  • Rates are subject to change on a daily basis. Rates as of 3.16.24. Check Charles Schwab’s Website for the most up to date rate information.

Main Benefits You Get From This CD

Charles Schwab’s CD offers several benefits, primarily the safety of FDIC insurance up to $250,000 per depositor, per insured bank, for each account ownership category. Additionally, a Schwab CD can be part of a diversified investment strategy, offering fixed rates so you know exactly what your return will be over the term of your investment without the volatility of the stock market.

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Western Alliance Bank Powered by Raisin

5.05% APY


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Best For: High APY From a Top Performing Bank

Term: 12 Months

Western Alliance Bank offers 5.05% APY exclusively through the Raisin Platform on their 12 month CD.

Interest compounds daily and is posted to your account monthly.

This APY is substantially higher than what you’ll find at most brick-and-mortar banks and even most online banks.

In addition to this high APY, Western Alliance offers $0 monthly maintenance fees and is insured by the FDIC for up to $250,000 per depositor.

Customer service is located in New York, they are available via phone or email. You'll also have 24/7 access to your account and funds.

Western Alliance Bank was founded in 1994 and is consistenly ranked among the top banks. They were ranked #1 top-performing large bank with assets greater than $50 billion in 2021 by both American Banker and Bank Director. Serving clients across the country wherever business happens.

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Discover Bank Logo

4.00% APY


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Best For: Longer Term + Customer Service

Term: 24 Months

Discover Bank offers 4.00% APY with no monthly fees and $2,500 initial deposit on their 24 Month CD.

Discover Bank is one of the first online focused banks to offer no monthly fees and what they call "No. Fees. Period."

Deposits are insured through the FDIC for up to $250,000 per depositor and if you have any questions Discover offers 100% U.S.-based Customer Service Available 24/7.

Interest compounds daily so lock in your 24 Month CD rate today & start earning guaranteed interest now.

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To recap our recommendations.

Best Certificate of Deposits According To CompareAccounts™

Western Alliance Bank® High-Yield CD: 5.05% APY - 12 Month Term

To See All of Our Recommended Certificate of Deposit Accounts Go To Our Best CD Rates Page.

Charles Schwab’s CD Account Pros:

Charles Schwab’s CDs come with several advantages:

    1. Competitive Rates: Generally offering higher rates than traditional savings accounts.
    2. Flexibility: A variety of terms allows investors to align their investment horizons with their financial goals.
    3. Security: Investments are FDIC insured, which means your capital is protected.
    4. Convenience: Easily purchasable online or via a Schwab brokerage account.

    Charles Schwab’s CD Cons:


    • Minimum Deposit: There may be a higher minimum deposit requirement compared to other institutions.
    • Early Withdrawal Penalties: Accessing funds before maturity can result in penalties, which is standard for CDs but can be a con for those seeking liquidity.
    • Rate Variability: Rates may not be as high as those offered by specialized online banks.

      Who Should Open a Certificate of Deposit Account from Charles Schwab.

      A Charles Schwab CD may be ideal for:

      • Investors looking for a low-risk investment.
      • Those diversifying their investment portfolio.
      • Savers with a specific time frame in mind for their financial goals.

        How to Open a Certificate of Deposit Account with Charles Schwab.

        Opening a Charles Schwab CD is straightforward:

        1. Create a Schwab brokerage account online.
        2. Once your brokerage account is active, you can choose to purchase a CD by logging in to your account.
        3. Select the CD with the term and rate that fits your needs and complete the purchase.

        Brief History & Timeline of Charles Schwab

        Charles Schwab’s journey from a small brokerage to a behemoth in the investment world is a tale of innovation, customer service, and market foresight. Below is a detailed timeline of the company’s history:

        1963-1971: The Formative Years

        • 1963: Charles R. Schwab and two other partners launch Investment Indicator, an investment newsletter. By 1971, the newsletter had 3,000 subscribers and Schwab had opened a small brokerage firm in San Francisco.

        1971: Establishment of Charles Schwab & Co., Inc.

        • April 1971: The firm is incorporated with the mission of a more client-centric approach to investing.

        1975: Deregulation and Growth

        • May 1, 1975: The SEC deregulates the securities industry by abolishing fixed brokerage commissions. This date, known as “May Day,” allowed Schwab to become one of the first firms to offer discounted stock trades, changing the industry forever.

        1980s: Pioneering Discount Brokerage

        • 1980: Schwab becomes the first brokerage to offer 24/7 order entry and quote service.
        • 1981: Schwab establishes the first 24-hour toll-free hotline for clients.
        • 1982: The company starts offering no-charge mutual fund transactions and money market funds.
        • 1983: Charles Schwab is among the first to utilize computerized order execution with the launch of the Equalizer, an online order entry system.

        1983: Going Public and Buyback

        • September 1983: Charles Schwab goes public, with its stock trading on the NASDAQ.
        • 1987: Charles Schwab and a group of investors buy the company back from Bank of America for $280 million.

        1990s: Expanding Services

        • 1991: The company introduces Schwab One, a brokerage account with a linked Visa card and checks.
        • 1992: Schwab becomes a pioneer again, offering online trading to its customers.
        • 1996: The firm launches the Schwab 1000 Index® fund.
        • 1997: Schwab’s website begins offering online access to equity and mutual fund research.

        2000s: Acquisitions and Online Milestones

        • 2000: Schwab acquires U.S. Trust, an asset management company, for $2.73 billion.
        • 2004: Charles Schwab steps down as CEO but remains Chairman of the Board.
        • 2005: Schwab sells U.S. Trust to Bank of America for $3.3 billion and Charles Schwab returns as CEO.

        2010s: Continued Growth and Development

        • 2013: Schwab announces Schwab ETF OneSource™, allowing investors to buy and sell 105 ETFs with $0 commission.
        • 2015: Schwab launches Schwab Intelligent Portfolios®, an automated investment advisory service.
        • 2019: Schwab drops commissions on U.S. stocks, ETFs, and options trades, leading to a “race to zero” within the industry.

        2019-2020: Major Acquisitions

        • November 2019: Charles Schwab announces the acquisition of TD Ameritrade, in a stock transaction valued at approximately $26 billion, further consolidating its position as a leader in the industry.
        • October 2020: The acquisition of TD Ameritrade is completed, significantly expanding Schwab’s scale and resources.

        2020s: Modernization and Industry Leadership

        • 2021: Charles Schwab continues to integrate TD Ameritrade’s operations, focusing on seamless customer experience and digital innovation.
        • 2022 and beyond: The company persists in its mission to democratize investment, offering a wide range of products from commission-free trading platforms to Robo-advisors, while continuing to push for better access and tools for investors.

        Throughout its history, Charles Schwab has consistently positioned itself at the forefront of financial innovation. The firm’s dedication to affordability and client empowerment has not only shaped its own narrative but has also transformed the landscape of the investment industry at large.

        Charles Schwab as a Publicly Traded Company

        Charles Schwab, known by its ticker symbol SCHW, stands as a prominent figure in the financial services industry, publicly traded on the New York Stock Exchange (NYSE). As an icon of innovation in the brokerage sector, Schwab has a storied history of democratizing investment for the individual, making it simpler and more accessible for retail investors to engage with financial markets.

        Growth and Financial Stability

        Since its IPO, Charles Schwab has displayed consistent growth, expanding both organically and through strategic acquisitions. Schwab’s financial stability is a vital consideration for investors, especially when it comes to entrusting the company with their CD investments. The company’s performance in the stock market often serves as a reflection of its overall health and is carefully scrutinized in annual reports and quarterly earnings statements that detail its financial status, market capitalization, and growth strategies.

        Market Adaptation and Innovation

        Charles Schwab has been renowned for its adaptability to market changes and technological advancements. The firm has been a trailblazer, adopting a discounted pricing model for trades long before it became the industry standard. This innovative spirit is also evident in their digital platforms and investment tools, which are designed to provide investors with a comprehensive, user-friendly experience.

        Dividend Payouts

        As an established publicly traded company, SCHW has historically offered dividends to its shareholders, reflecting its profitability and commitment to returning value. For CD investors, the aspect of Schwab paying dividends can be a reassuring sign of financial health.

        Schwab’s Recent Performance

        In recent years, SCHW’s performance in the stock market has been subject to the same economic pressures that affect the broader financial sector, including interest rate changes, economic cycles, and market volatility. Investors and analysts often look at SCHW’s stock performance as a barometer for the company’s resilience and management’s ability to navigate the complex landscape of financial services.

        Environmental, Social, and Governance (ESG)

        Charles Schwab has also embraced the principles of ESG, demonstrating a commitment to responsible business practices, social responsibility, and environmental sustainability. For socially conscious investors, this is an essential aspect of the company’s profile.

        Investor Relations

        For detailed financial information, Charles Schwab provides an investor relations section on its website where stakeholders can access earnings reports, SEC filings, corporate governance information, and details about its annual shareholder meetings. This transparency is crucial for investors looking to understand the company’s financial strategies and long-term vision.

        SCHW’s Role in Your Portfolio

        While CD rates at Charles Schwab provide one avenue for personal investment, the performance of SCHW as a stock offers another layer for potential investors. Holding SCHW in a portfolio can be viewed as a vote of confidence in the company’s broader financial services, operational strategy, and its future within the financial sector.


        Investing in Charles Schwab’s publicly traded stock can complement an investment in their CD products, albeit with a different risk profile and investment objective. SCHW’s performance is a testament to the company’s robust management and enduring appeal to both retail and institutional investors. Whether you’re buying a CD or considering stock investment, Charles Schwab’s reputation as a publicly traded company is an essential factor in the decision-making process.

          Charles Schwab’s Other Banking and Investment Products & Services

          Charles Schwab offers a variety of financial products tailored to meet the needs of both individual investors and businesses:

          Personal Banking:

          • Checking and Savings Accounts: These accounts offer competitive rates, easy access to funds, and are designed for both everyday banking and long-term savings.
          • Money Market Funds: A stable option for those looking to earn higher interest rates while maintaining access to their funds.

          Investment Options:

          • Brokerage Accounts: Access a wide range of investment vehicles, including stocks, bonds, ETFs, and mutual funds, supported by Schwab’s comprehensive research resources.
          • Retirement Accounts: From Traditional IRAs to Roth IRAs, these accounts help individuals save for retirement with tax advantages.
          • Education Savings Accounts: Investment accounts like 529 plans to support future educational expenses.

          Wealth Management:

          • Advisory Services: Schwab offers personalized investment advice, automated portfolio management options, and access to independent investment advisors to cater to various investment styles and preferences.

          Business Services:

          • Business Accounts: Solutions for businesses including checking accounts and retirement plans to support operational and employee retirement needs.

          By offering a wide range of banking products, investment services, and wealth management solutions, Charles Schwab caters to the diverse needs of individual and business clients. The company’s commitment to providing value, convenience, and integrated services helps clients navigate their financial journeys with confidence. Whether you are looking to save, invest, or manage wealth for the future, Charles Schwab’s robust product offerings provide the tools and resources necessary for financial success.

          Charles Schwab Contact Information

          For more information or to get current CD rates, customers can:

          • Visit the Charles Schwab website.
          • Call customer service at their dedicated number.
          • Find a local branch and speak to a representative in person.

          See More CD Rates by Term & Type

          Compare the best rates for various CD terms and types:

          Best overall CD rates

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          Home » Certificate of Deposit » CD Bank Reviews » CD – Charles Schwab

          Charles Schwab Certificate of Deposit FAQ

          Are Charles Schwab CDs good?

          Charles Schwab CDs can be considered a solid choice for individuals seeking a low-risk investment. They offer a predictable rate of return and can be a good fit for conservative investors focusing on capital preservation. The credibility of Charles Schwab, coupled with the stability of CD investments, generally makes them a good option for those looking to diversify their investment portfolio with a fixed income component.

          Who is a Charles Schwab CD right for?

          A Charles Schwab CD is ideal for investors who are looking for a guaranteed return and can commit to leaving their money invested for a fixed period. It suits risk-averse individuals, such as retirees or near-retirees who prioritize the safety of their principal over higher returns. It’s also appropriate for those with specific investment timelines, where knowing exactly how much they will have at the end of the CD term is crucial.

          Do Schwab CDs Have FDIC Insurance?

          Yes, CDs offered through Charles Schwab are FDIC insured, which means that each depositor is protected for up to $250,000 per insured bank. This insurance safeguards investors’ deposits against the unlikely event of a bank failure, making Schwab CDs a secure investment choice for savers.

          Which bank owns Charles Schwab?

          Charles Schwab is not owned by any single bank but rather is an independent entity. It operates its own bank, Charles Schwab Bank, which is a subsidiary of The Charles Schwab Corporation. The company is a giant in financial services and is known for its brokerage services along with banking products like CDs.

          How do Charles Schwab's CD rates compare to other banks and financial institutions?

          Charles Schwab’s CD rates are typically competitive and are often comparable to or slightly higher than the national averages for CDs of similar terms. However, rates fluctuate and may not always be the highest available in the market. Investors may find better rates with online banks or credit unions but will have to weigh those rates against the comprehensive services and security that Charles Schwab provides.

          Does Charles Schwab charge for CDs?

          Charles Schwab does not typically charge a direct fee for opening or maintaining a CD. However, like most CDs, there are potential costs associated with early withdrawal. If an investor chooses to withdraw money from a CD before its maturity date, there is usually a penalty which can vary depending on the length of the CD term and the amount being withdrawn. It’s important to review the specific terms of a CD for any associated costs or penalties before investing.

          Conclusion on Charles Schwab CD Rates

          When it comes to saving for the future, few financial products offer the stability and predictability of a Certificate of Deposit (CD). Charles Schwab’s range of CD accounts stands as a testament to the company’s commitment to providing secure investment options for its clientele. These CDs come with the assurance of competitive interest rates, ensuring that your savings not only grow at a steady pace but also keep up with or surpass inflationary pressures over time.

          The advantages of choosing a Charles Schwab CD go beyond just the allure of stable returns. Each CD is backed by the Federal Deposit Insurance Corporation (FDIC), which means your investment is insured up to the maximum amount allowed by law, providing an additional layer of security for your hard-earned money. This is a vital consideration for cautious savers who prioritize the protection of their capital over high-risk, high-reward investment opportunities.

          Moreover, the strength and reputation of Charles Schwab as a financial institution cannot be overstated. With decades of experience and a robust financial infrastructure, investing in a CD with Schwab offers peace of mind that comes from a longstanding history of financial stability and customer trust.

          It’s also important to recognize the constraints that come with a CD, such as limited liquidity. The potential for penalties arising from early withdrawal is a factor that must be weighed carefully. These costs can negate some of the interest earned, so it’s crucial to consider the likelihood of needing access to your funds before the CD’s maturity date.

          However, for those with a clear savings timeline and a desire for fixed-rate returns, Charles Schwab CDs can serve as a cornerstone in a diversified portfolio. They are particularly suitable for investors who are working towards a specific financial goal, such as a down payment on a home or a child’s education fund, where capital preservation is as important as growth.

          In conclusion, while weighing the merits of any investment product, it is imperative to align it with your individual financial goals, risk tolerance, and time horizon. Consulting with a financial advisor can provide personalized insight, ensuring that the decision to invest in a Charles Schwab CD fits seamlessly within your broader financial plan. With the right strategy, a Charles Schwab CD can be a strategic asset in safeguarding your future financial wellbeing.

          *National Savings Rate Average as published by FDIC