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Edward Jones CD Interest Rates Account Review & More
By: Conor Keenan Last updated on January 7, 2024
Conor Keenan is compareaccounts.com's co-founder. His work in personal finance has been featured by MSN, CNN, AOL, Fox News, Yahoo News & many more.
Editorial Freedom: The opinions, reviews, or recommendations expressed in any article by our editorial team are not endorsed by any financial institution or partner. Our editorial team's content is not provided or commissioned by any financial institution or our partners herein.
Edward Jones offers some decent rates on their CD accounts, however, these decent rates come with some meaningful drawbacks.
Read our review and see why we recommend opening a different CD now.
Edward Jones is one of the biggest and most successful financial firms in the world. Edward Jones offers several different types of Certificates of Deposit (CDs) – from short-term CDs to long-term CDs.
At first glance, Edward Jones CD interest rates appear to be competitive. But when you look at the drawbacks, they soon lose their luster. See the drawbacks of an Edward Jones CD and our recommendations for which CD account you should open below.
Drawbacks of Edward Jones CD Rates
1. Interest Does Not Compound
If you’re looking for a CD, you know the power of compound interest. Thankfully, each of our recommendations below compounds interest daily.
2. Complicated Account Open Process
You’ll first need to be matched with a financial advisor before you can open an account. Each of our recommendations below allows you to open your account quickly and securely online. Usually in as little as 5 minutes.
3. APY May Not Be Available to You
Edward Jones provides the disclaimer – “Maturities and/or rates may not be available in all states.” This means, even if you go through the painful process to open an new CD with them, you may get a lower APY. With the recommended CDs on this page, what you see is what you get.
Edward Jones® Details
- Certificate of Deposit
- Term: 48 Months
- Minimum Opening Deposit: Does Not Disclose
- 4.65% APY
- Maturities and/or Rates May Not be Available in All States
- Early Withdrawal May Not be Permitted
- Need a Financial Advisor to Open Account
- CDs Require the Distribution of Interest & Do Not Allow Interest to Compound
Shown For Comparison Purposes Only.
Open a CD with One of Our Partners Below & Get More Certainty Than With Edward Jones
Best For: Very Short Term + Community Focus
Term: 3 Month
Ponce Bank was born in The Bronx in 1960 and has earned the title of a Certified Community Development Financial Institution (CDFI).
They earned CDFI status by investing more than 80% of their assets in low and moderate income communities.
Exclusively through the Raisin platform, Ponce Bank currently offers 5.35% APY on their 1 Month CD with no monthly fees and a minimum initial deposit of $1.00.
Deposits are insured through the FDIC for up to $250,000 per depositor and interest compounds daily.
When you invest your savings with Ponce Bank you're helping underserved communities in America.
See Raisin's Secure Site For Ponce Bank to Get More Details.
Best For: Shorter Term + High APY
Term: 6 Months
Western Alliance Bank offers 5.23% APY exclusively through the Raisin Platform on their 6 month CD.
Interest compounds daily and is posted to your account monthly.
This CD is a great fit if you're looking for a high APY but want access to your money sooner than other CD terms.
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.
See Raisin's Secure Site for Western Alliance Bank to Get More Details.
Best For: No Penalty Fees + High APY Interest Rates
Term: 11 Months
CIT Bank has been helping customers for over 100 years. Founded in 1908, CIT Bank is now part of First Citizens BancShares, Inc.
They currently offer 4.90% APY on their 11 Month No Penalty CD with no monthly fees.
There is no penalty to access funds if needed before maturity.
You can open a CIT Bank 11 Month No Penalty CD with as little as $1,000 and it only takes about 5 minutes to complete the sign-up process.
Deposits are insured through the FDIC for up to $250,000 per depositor and interest compounds daily to maximize your earning potential.
See CIT Bank's Secure Site For More Details.
Best For: Online Banking Experience + Customer Service
Term: 12 Months
Discover Bank offers 4.90% APY with no monthly fees and $2,500 initial deposit on their 12 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 12 Month CD rate today & start earning guaranteed interest now.
See Discover Bank's Secure Site For More Details.
Best For: Longer Term + High APY
Term: 15 Months
Blue Federal Credit Union is offering an unrivaled 5.25% Annual Percentage Yield (APY) exclusively through the Raisin Platform on their 15-month CD. In today's economic landscape, that's a rate that few, if any, can match.
Founded in 1951, Blue Federal Credit Union has been proudly serving its members for over 70 years.
Open your account with confidence. Deposits are insured through the NCUA for up to $250,000 per depositor.
This CD offers the perfect balance of growth and accessibility. It's a short enough term to foresee and plan for, yet long enough to yield substantial growth on your investment.
See Raisin's Secure Site for Blue Federal Credit Union to Get More Details.
To recap our recommendations.
Best Certificate of Deposits According To CompareAccounts™
Ponce Bank® Certificate of Deposit Account: 5.35% APY - 3 Month Term
Western Alliance Bank® High-Yield CD: 5.23% APY - 6 Month Term
CIT Bank® No Penalty Certificate of Deposit Account: 4.90% APY - 11 Month Term
Discover® Bank Certificate of Deposit Account: 4.90% APY - 12 Month Term
Blue Federal Credit Union Certificate of Deposit Account: 5.25% APY - 15 Month Term
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- High Yield Savings Account
- Min. balance for APY: $0
- Min. Initial Deposit: $0
- 4.30% APY
- 5x National Savings Avg*
- Mobile Check Deposit
- No Monthly Fees
- 100% U.S.-based Customer Service Available 24/7
- Interest Compounded Daily
- FDIC Insured up to $250,000
- See Site For Details
On Discover Bank's Secure Site, Member FDIC
Edward Jones CD Rates
|Annual Percentage Yield* (%)
Rates current as of 7/31/23 – see site for most up to date Edward Jones CD Rates
All CDs sold by Edward Jones are registered with the Depository Trust Corporation (DTC), which acts as a digital repository for financial data and helps maintain transparency and accountability within the financial industry.
Edward Jones CD Rates: Brokered CDs
At Edward Jones understands that every individual has unique needs and goals when it comes to investing. That’s why a variety of investment options are offered, including brokered CDs. But what exactly are brokered CDs and how do they differ from traditional CDs?
First and foremost, it’s important to note that with brokered CDs, the account is not managed by the client themselves. Instead, Edward Jones purchases the CD on behalf of the client from one or many different banks in partnership with the firm. This allows for a wider selection of CDs to be offered and potentially higher yields than what may be found at a single bank or credit union.
When it comes to opening a brokered CD with Edward Jones, there are two options available: opening a new CD with the firm or purchasing a secondary CD on the open market. If a new CD is opened, there are no commission fees as the cost is already factored into the price. However, if a secondary CD is purchased, a commission will be charged similar to purchasing stock.
One of the benefits of brokered CDs offered by Edward Jones is that there are no early withdrawal penalties. If the client needs to access their funds early, they can simply sell the CD on the secondary market. However, it’s important to keep in mind that this also means that the price of the CD can fluctuate on the open market and may be sold for less than the purchase price.
Additionally, it’s worth noting that interest earned on brokered CDs does not compound. That’s right, no compound interest. This is standard for brokered CDs as they require an immediate distribution of interest. The terms of the CD will indicate how often the interest on the account is credited and where. And also brokered CDs with Edward Jones do not automatically renew.
If considering a brokered CD as a savings option, the financial advisors at Edward Jones are available to help clients understand the pros and cons and determine if it aligns with their investment goals.
Why are Edward Jones CD Rates High?
Edward Jones CD rates can be higher for several reasons. One is that they offer brokered CDs which allow for a wider range of investment options as they can purchase CDs from multiple banks. Additionally, some banks may offer higher rates to attract more deposits through their partnership with Edward Jones. However, it’s always important to consider all factors such as terms, fees, and the stability of the financial institution before making an investment decision. It’s best to discuss the specific terms and conditions of a CD with a financial advisor from Edward Jones to determine if it’s a suitable investment for your individual financial goals and risk tolerance.
Edward Jones CD Rates: Pros
Pros of a brokered CD:
Higher yields: Brokered CDs may offer higher yields than traditional CDs, as they are sold by brokerage firms and can be purchased from multiple banks.
FDIC-insured: Brokered CDs are typically FDIC-insured, meaning that the principal investment is protected up to $250,000 per depositor, per institution.
Flexibility: Unlike traditional CDs, brokered CDs can be bought and sold on the secondary market, offering more flexibility to investors.
Diversification: With brokered CDs, investors have access to a wider range of options and can diversify their portfolio.
Professional management: Working with a financial advisor or broker may provide additional guidance and professional management to help investors make informed decisions.
Edward Jones CD Rates: Cons
Cons of a brokered CD:
- Secondary market risk: The price of brokered CDs can fluctuate on the open market, and they can be sold for less than the purchase price.
- Commission fees: Buying a secondary market brokered CDs may require commission fees, similar to purchasing stock.
- Interest earned may not compound: Brokered CDs typically require an immediate distribution of interest, therefore the interest earned may not compound.
- Early withdrawal penalties: Brokered CDs do not have early withdrawal penalties, but this also means that if interest rates have risen, it may be hard to sell the deposit for the full purchase price.
- No automatic renewal: Brokered CDs do not automatically renew, so investors need to be aware of maturity dates and make arrangements to rollover or cash out their CDs.
Does Edward Jones Charge Fees for Its CDs?
Edward Jones may charge fees for CDs, but it depends on the type of CD and the specific circumstances. If you open a new CD with Edward Jones, you will not have to pay any commission fees as the concession from the bank that takes your deposit is already factored into the price. However, if purchasing a CD on the secondary market, you may be required to pay Edward Jones a commission, similar to purchasing stock. The commission taken by Edward Jones can be seen in the trade confirmation. It’s advisable to review the specific terms and conditions of your CD account with Edward Jones and inquire about any fees that may apply.
Edward Jones Money Market Funds
Edward Jones is a financial services firm that offers investment advice and financial planning services. The company has money market funds known as Edward Jones Money Market Funds (Yields of the Edward Jones Money Market Fund represent past performance, which is not a guarantee of future results).
These money market funds are liquid mutual funds with good cash access and are available for new pooled retirement plans, advisory solutions accounts and guided solutions accounts.
Yields of the Edward Jones Money Market fund represent past performance, which is not a guarantee of future results. This means you can’t rely on returns from Edward Jones money market funds to cover your expenses. You should consider other options for savings, such as savings accounts or certificates of deposit (CDs).
Edward Jones Flex Funds Account (Cash Management Account)
Edward Jones offers a Flex Funds Account (Cash Management Account) with no annual fee and up to 120 checks per year free of charge. This account is insured up to $2.5 million using multiple banks. You can set short-term savings goals for yourself, such as saving money for vacation or for a new computer, and easily track your progress towards those goals with a Flex Funds Account.
If you’re interested in the upgraded protection a flex funds account can offer you and need help choosing the right account for your financial needs, call Edward Jones today to discuss your options.
History of Edward Jones
Edward Jones was founded in 1922 by Edward D. Jones Sr. in St. Louis, Missouri. The company began as a one-man operation, with Jones Sr. offering investment advice and brokerage services to individuals and families in the St. Louis area. In the decades that followed, the company expanded gradually, opening new branches in other parts of the Midwest.
In the 1960s, the company began to shift its focus from institutional investors to individual investors, and started to open branches in smaller towns and rural areas. This marked the beginning of the companies mission of providing personalized investment advice and services to individual investors and families.
In the 1970s and 1980s, the company continued to expand its presence across the United States and began offering a wider range of financial products and services, including mutual funds, stocks, bonds, and insurance. They also started to offer retirement planning services and financial planning for college education. This period marked the company’s growth as a full-service financial firm, providing comprehensive financial advice and solutions to their clients.
In the 1990s, the company continued to expand rapidly and opened new branches across the United States. They also began to focus on technology, developing a proprietary trading platform that allows their financial advisors to provide real-time financial advice and information to clients.
Today, Edward Jones is one of the largest investment firms in the United States, with over 18,000 financial advisors working in more than 11,000 branches located in every U.S. state and Canada. The company specializes in providing personalized investment advice and services to individual investors and families, and is known for its “face-to-face” approach to working with clients. They offer a wide range of products and services, including individual stocks, bonds, mutual funds, exchange-traded funds, options, annuities, insurance, and retirement planning services, as well as college savings plans. They also provide financial planning services, including retirement planning, estate planning, tax planning, and risk management.
More About Edward Jones CD Rates
Edward Jones provides the following small print about their CD accounts.
“Maturities and/or rates may not be available in all states.
*Annual Percentage Yield (APY), effective 1/13/2023 . APY interest cannot remain on deposit; periodic payout of interest is required. Certificates of deposit (CDs) offered by Edward Jones are bank-issued and FDIC-insured up to $250,000 (principal and interest accrued but not yet paid) per depositor, per depository institution, for each account ownership category. Please visit the Federal Deposit Insurance Corporation or contact your Edward Jones financial advisor for additional information. Subject to availability and price change. CD values are subject to interest rate risk such that when interest rates rise, the prices of CDs can decrease. If CDs are sold prior to maturity, the investor can lose principal value. FDIC insurance does not cover losses in market value. Early withdrawal may not be permitted. Yields quoted are net of all commissions. CDs require the distribution of interest and do not allow interest to compound. CDs offered through Edward Jones are issued by banks and thrifts nationwide. All CDs sold by Edward Jones are registered with the Depository Trust Corp. (DTC).
Source : https://www.edwardjones.com/us-en/market-news-insights/stock-market-news/current-rates
Edward Jones as a Fiduciary:
Edward Jones is a financial services firm that provides investment advice and financial planning services to individual clients. The company is registered with the Securities and Exchange Commission (SEC) as a broker-dealer and is also a member of the Financial Industry Regulatory Authority (FINRA). As a registered broker-dealer, the firm has a fiduciary duty to its clients, which means that it must act in the best interests of its clients when providing investment advice and managing their assets.
A fiduciary is a person or organization that has a legal or ethical relationship of trust with one or more other parties (person or group of persons). Typically, a fiduciary prudently takes care of money or other assets for another person. A fiduciary duty is the highest standard of care at either equity or law. A fiduciary is expected to be extremely loyal to the person to whom he owes the duty (the “principal”): such loyalty must be undivided. In this sense, a fiduciary is a type of trustee. Common examples of fiduciaries include trustees, executors, and some agents.
In the case of financial advisors, a fiduciary duty means that they must put their clients’ interests ahead of their own and provide unbiased advice. This means that they must disclose any conflicts of interest and must not engage in any transactions that would benefit themselves at the expense of their clients. Broker-dealers like Edward Jones are required to act as fiduciaries when providing investment advice to their clients, but it is important for investors to understand that not all financial advisors are fiduciaries. Some may be held to a lower standard of care, such as the “suitability” standard.
How Edward Jones Select Financial Advisors:
Edward Jones selects its financial advisors through a rigorous recruitment and training process. The process typically begins with an initial interview, where the candidate’s background, experience, and qualifications are evaluated. If the candidate meets the initial qualifications, they will then be invited to attend the firm’s training program, called the Financial Advisor Development Program (FADP). The FADP is a comprehensive, multi-phase program that includes classroom training, hands-on experience, and ongoing support. The program is designed to provide new advisors with the knowledge and skills they need to be successful in the financial services industry.
During the FADP, the trainee will learn about the company’s products and services, as well as the regulatory environment in which it operates. They will also be introduced to the company’s sales and marketing strategies. At the end of the FADP, trainees will be expected to pass a series of exams, including the Series 7, Series 66 and insurance licenses. The firm will also review their background check, credit report, and compliance history.
After the successful completion of the FADP and passing the necessary exams, the trainee will be designated as a Financial Advisor and will be assigned a mentor, who will provide ongoing support and guidance as the new advisor builds their business. The company also provides ongoing education and training for its financial advisors to help them stay current with industry developments and to meet continuing education requirements.
It’s worth to note that Edward Jones is a partnership firm, where the Financial Advisors are also the owners of the firm, so the selection process is stringent, as the company is looking for individuals who will represent the firm in a professional and ethical manner and have the potential to build a successful business.
Edward Jones Other Information:
Edward Jones is a financial services firm that has been in business for over a century. The company is headquartered in St. Louis, Missouri and has more than 18,000 financial advisors located in the United States and Canada. The company’s primary focus is on providing investment advice and financial planning services to individual investors and small business owners.
Edward Jones offers a wide range of financial products and services, including mutual funds, stocks, bonds, options, annuities, and insurance. The firm also provides retirement planning, estate planning, and tax planning services. The financial advisors at Edward Jones are trained to provide individualized, face-to-face advice to clients in their local communities.
One of the key aspects of the firm’s business model is the use of a “branch office administrator” (BOA) model, which is unique in the industry. BOAs are responsible for the non-investment related aspects of the branch office, such as administrative and compliance matters, allowing the financial advisors to focus on providing advice and building relationships with clients.
Edward Jones has been consistently ranked as one of the best companies to work for by various publications, and the company has a reputation for providing extensive training and support to its financial advisors. The firm has also been recognized for its commitment to ethical business practices and its focus on serving the needs of individual investors.
It’s worth to note that as a broker-dealer, the firm’s compensation is based on commissions and fees, which is something that should be considered when evaluating financial products or services offered by the firm’s financial advisors. Investors should always understand the fees and charges associated with any investment, and how those fees are paid, before making a decision to invest.
Other Firms Similar to Edward Jones:
Edward Jones is a financial services firm that primarily provides investment advice and financial planning services to individual investors and small business owners. Some of the firm’s main competitors include:
Charles Schwab: Charles Schwab is a large, full-service brokerage firm that offers a wide range of investment products and services, including stocks, bonds, mutual funds, and exchange-traded funds (ETFs). The firm is known for its low fees and strong online trading platform.
Fidelity Investments: Fidelity Investments is another large, full-service brokerage firm that offers a wide range of investment products and services, including stocks, bonds, mutual funds, and ETFs. The firm is known for its extensive research and investment tools, as well as its customer service.
TD Ameritrade: TD Ameritrade is an online brokerage firm that offers a wide range of investment products and services, including stocks, bonds, mutual funds, and ETFs. The firm is known for its strong online trading platform and its extensive research and investment tools.
Vanguard: Vanguard is a mutual fund company that offers a wide range of low-cost index funds and ETFs. The firm is known for its low fees and its focus on passive investment strategies.
Wells Fargo Advisors: Wells Fargo Advisors is a full-service brokerage firm that offers a wide range of investment products and services, including stocks, bonds, mutual funds, and ETFs. The firm is known for its financial planning and wealth management services.
When considering which firm to use for your investments, it’s important to consider the fees and charges associated with the products or services offered, as well as the investment options available. Additionally, it’s crucial to understand the services that each firm offers, and how they align with your investment goals and needs. It’s recommended to evaluate different firms, compare their fees and services, and consult with a financial professional or a financial planner before making any investment decisions.
Edward Jones Contact Information:
Customer service Phone Number:
1 (800) 441-2357
Headquarters: St. Louis, MO