Edward Jones CD Interest Rates Account Review
By: Conor Keenan | Last updated: April 30, 2026
Conor Keenan, AWMA®, is the Co-Founder of CompareAccounts. An Accredited Wealth Management Advisor™ professional with over a decade of experience covering consumer banking and investing trends, his work has appeared in The Wall Street Journal, Reuters, and Yahoo Finance.
Editorial Independence: Our opinions, reviews, and recommendations are our own. Partner commissions keep our site free, but our content remains independent.
What is an Edward Jones CD? Firstly, Edward Jones is a massive financial firm that offers brokered Certificates of Deposit (CDs). Therefore, these are slightly different from standard bank CDs. For example, they offer a highly competitive APY because the firm buys them from multiple banks. However, these decent rates come with some meaningful drawbacks. Consequently, you must understand how brokered CDs work before you invest your cash.
If you want to see how these brokered CDs compare to standard options, you can check our full CD comparison hub.
Key Takeaways
- Firstly, Edward Jones CDs do not earn compound interest.
- Secondly, you cannot simply withdraw your money early and pay a small penalty. Instead, you must sell the CD on the open market.
- In addition, you must open a brokerage account and usually work with an advisor to buy them.
- Furthermore, the minimum deposit is $1,000.
- Most importantly, these CDs do not automatically renew when they mature.
What Are Edward Jones Brokered CDs?
Firstly, Edward Jones does not issue its own CDs. Instead, the firm acts as a broker. In other words, they buy CDs in bulk from many different partner banks. After that, they sell these CDs to their clients. Therefore, these are called brokered CDs.
Because they shop around at multiple banks, Edward Jones can offer a highly competitive APY. However, brokered CDs operate under different rules than standard bank CDs. For example, the account is not managed by you directly. Consequently, you must open an Edward Jones brokerage account to buy one.
What Are the Key Features?
Brokered CDs offer unique features. Therefore, they appeal to a specific type of investor.
- No compound interest: Firstly, brokered CDs pay simple interest. In other words, your interest is paid out periodically instead of reinvesting into the CD.
- High minimum deposit: Secondly, you need at least $1,000 to open a CD.
- FDIC insurance: In addition, because the underlying banks are FDIC-insured, your principal is protected up to $250,000 per institution.
- No early withdrawal penalties: Furthermore, there is no traditional penalty for cashing out early. However, you must sell the CD on the secondary market instead.
- No automatic renewal: Finally, your CD will simply deposit cash into your brokerage account when it matures. Therefore, you must manually choose your next investment.
What Are the Pros and Cons?
Brokered CDs offer massive variety. However, the lack of compound interest is a huge drawback. Here is a balanced look at the pros and cons.
Pros
- Great rates: Firstly, you can lock in a highly competitive APY for terms ranging from 3 months up to 10 years.
- Safety: Secondly, the underlying deposits are fully FDIC-insured.
- Huge variety: In addition, you have access to dozens of different term lengths, which makes building a CD ladder incredibly easy.
- No standard penalties: Finally, you will not pay a traditional bank penalty if you need your money back.
Cons
- No compound interest: However, your interest does not grow on top of itself. Consequently, your long-term earnings are lower than standard CDs.
- Secondary market risk: In addition, if you sell your CD before maturity, you might lose money if market interest rates have risen.
- Complex setup: Furthermore, you must open a brokerage account and usually speak to an advisor to start.
- Commission fees: Finally, if you buy or sell a CD on the secondary market, Edward Jones charges a markup fee.
How Do Edward Jones CDs Compare to Standard CDs?
When you compare brokered CDs to standard CDs, the differences are massive. Firstly, standard CDs earn compound interest. As a result, your money grows much faster over time. In contrast, Edward Jones CDs require an immediate payout of your interest.
Secondly, early withdrawals work very differently. If you break a standard CD early, you simply pay a fixed penalty of a few months’ interest. However, your initial deposit remains perfectly safe. On the other hand, if you need to exit an Edward Jones CD early, you must sell it to another investor. Consequently, if current interest rates are high, your CD will lose value. As a result, you could lose some of your initial deposit.
What Are the Fees and Minimums?
Edward Jones requires a $1,000 minimum deposit to open a CD. Therefore, it is slightly more expensive than some online banks. In addition, you must open a brokerage account, which may have its own fee structure.
However, if you buy a brand new CD issue, you will not pay any commission fees. The bank’s concession is already built into the price. On the other hand, if you buy or sell a CD on the secondary market, Edward Jones charges a fee. For instance, this markup can cost up to 2% of the purchase amount. Therefore, it is crucial to hold your CD until it matures.
Is an Edward Jones CD Worth It? Bottom Line
In conclusion, Edward Jones brokered CDs are a decent option for existing clients. If you already have a brokerage account there, they offer a safe way to earn a highly competitive APY. Furthermore, the massive variety of term lengths makes it incredibly easy to build a fixed-income portfolio.
However, for the average saver, standard CDs are usually much better. For example, standard CDs offer compound interest and much simpler early withdrawal rules. Consequently, if you just want a safe place to grow your cash, you should probably look elsewhere. You can easily find a standard CD with a top-tier rate by checking our CD comparison hub.
Frequently Asked Questions
Do Edward Jones CDs earn compound interest?
No, Edward Jones CDs do not earn compound interest. Because they are brokered CDs, they pay simple interest. Therefore, your interest is paid out to your brokerage account on a regular schedule. Consequently, your interest does not stay in the CD to generate more earnings over time.
What is the minimum deposit for an Edward Jones CD?
Firstly, you must have an open brokerage account with the firm. Secondly, you must make a minimum deposit of $1,000 to purchase a CD. Therefore, it requires a slightly larger investment than many standard bank CDs.
What is the early withdrawal penalty for an Edward Jones CD?
Edward Jones CDs do not have traditional early withdrawal penalties. However, you cannot simply return the CD to the bank. Instead, you must sell it on the secondary market. Consequently, if market interest rates have increased, your CD will drop in value. As a result, you could lose a portion of your original principal.
Are Edward Jones CDs FDIC insured?
Yes, the underlying CDs are completely safe. Even though Edward Jones is a brokerage firm, they purchase the CDs from real, federally insured banks. Therefore, your deposits are protected by the FDIC for up to $250,000 per depositor, per institution.
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History of Edward Jones
Edward Jones was founded in 1922 by Edward D. Jones Sr. in St. Louis, Missouri. Firstly, the company began as a simple one-man operation. For example, Jones Sr. offered basic brokerage services to local families. However, the company expanded gradually over the following decades. As a result, they opened new branches across the Midwest.
In the 1960s, the company shifted its focus. Specifically, they moved away from institutional investors to focus entirely on everyday individuals. Consequently, they began opening branches in smaller rural towns. This marked the beginning of their famous face-to-face business model.
During the 1970s and 1980s, the company expanded its presence across the United States. In addition, they started offering a wider range of financial products. For instance, they added mutual funds, insurance, and retirement planning to their lineup. Therefore, this period transformed them into a full-service financial firm.
Today, Edward Jones is one of the largest investment firms in North America. In fact, they employ over 20,000 financial advisors. Furthermore, these advisors work in nearly 15,000 branch locations. Ultimately, the company remains dedicated to providing personalized, in-person investment advice to individual families.
Is Edward Jones a Fiduciary?
Many investors want to know if their advisor is legally required to put their interests first. Firstly, it is important to understand that Edward Jones is a “dually registered” firm. In other words, they operate as both a broker-dealer and an investment adviser. Therefore, their legal duty depends on the specific type of account you open.
For example, if you open an advisory account (like Advisory Solutions), the firm acts as a fiduciary. Consequently, they are legally bound to put your best interests ahead of their own. Furthermore, they must disclose any conflicts of interest.
However, if you open a standard transactional brokerage account, they act as a broker-dealer. In this case, they operate under the Regulation Best Interest standard. Therefore, they must ensure their recommendations are suitable for you at the time they are made. Because these standards differ, you should always ask your specific advisor how they are managing your money.
How Does Edward Jones Select Financial Advisors?
Edward Jones uses a rigorous recruitment and training process to hire its staff. Firstly, candidates must pass a strict initial interview. After that, successful applicants attend the Financial Advisor Development Program (FADP). This multi-phase program includes deep classroom training and hands-on experience.
During this program, trainees learn about the company’s products, sales strategies, and federal regulations. In addition, they must pass a series of difficult industry exams. For instance, they must earn their Series 7 and Series 66 licenses. Furthermore, the firm runs thorough background and credit checks.
Finally, once the exams are passed, the trainee becomes an official Financial Advisor. Consequently, they are assigned a veteran mentor to guide them as they build their local business.
Edward Jones Cash Management and Money Market Funds
Beyond traditional investing, Edward Jones offers tools to manage your uninvested cash.
Edward Jones Money Market Funds: Firstly, the firm offers liquid mutual funds to hold your cash. However, these are investment products, not bank accounts. Therefore, their returns are not guaranteed. Consequently, you should not rely on them the same way you rely on a standard savings account.
Flex Funds Account: Alternatively, you can use the Flex Funds Account. Essentially, this is a cash management account that comes with free checks and no annual fee. Most importantly, it sweeps your uninvested cash into a network of partner banks. As a result, your money receives up to $2.5 million in FDIC insurance coverage.
Other Firms Similar to Edward Jones
If you are shopping around for financial advice, several other major firms offer similar services. Here are the top alternatives to consider.
- Charles Schwab: Firstly, Schwab is a massive, full-service brokerage firm. Following its historic acquisition of TD Ameritrade, it offers one of the best online trading platforms in the world. Furthermore, they are famous for their low fees.
- Fidelity Investments: Secondly, Fidelity is another giant in the brokerage space. They offer an incredible array of mutual funds and zero-expense-ratio index funds. In addition, their customer service is highly rated.
- Vanguard: Furthermore, Vanguard is legendary for pioneering the low-cost index fund. Therefore, it is a fantastic choice if you prefer passive, long-term investing.
- Wells Fargo Advisors: Finally, Wells Fargo Advisors operates a similar branch-based model. Consequently, they offer excellent face-to-face wealth management and financial planning.
Edward Jones Contact Information
- Customer Service Phone Number: 1 (800) 441-2357
- Headquarters: St. Louis, Missouri
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