Yes, Schwab offers CDs through its brokerage platform

Charles Schwab sells certificates of deposit from multiple banks and credit unions through its brokerage account. You do not need a separate savings account at Schwab to buy them — you can hold CDs alongside stocks, bonds, and cash in the same brokerage account. Schwab acts as an intermediary, connecting you to the underlying issuers.

The CDs available through Schwab come from institutions across the country, not just from Schwab Bank itself. This means you can compare rates and terms from different issuers in one place rather than visiting each bank's website separately. Schwab updates its CD offerings daily, so rates change frequently.

Key Takeaways

  • Schwab offers CDs from multiple banks and credit unions, letting you compare rates and terms without opening separate accounts at each institution.
  • CD rates through Schwab change daily and vary by term length, issuer, and deposit amount.
  • Schwab CDs are FDIC-insured up to $250,000 per issuer, so holding CDs from different banks through Schwab keeps your coverage separate.
  • You can buy and sell CDs in Schwab's secondary market before maturity, though you may gain or lose money depending on interest rate movement.
  • Schwab charges no commission to buy new CDs or to hold them until maturity.

How to find and compare CD rates at Schwab

Log into your Schwab account and navigate to the Fixed Income section, then select CDs. Schwab displays available CDs sorted by term length (3 months, 6 months, 1 year, 2 years, and so on) and shows the annual percentage yield (APY) for each. You can filter by term, issuer, or minimum deposit amount.

The rates you see are live quotes, meaning they reflect what Schwab is offering at that moment. If you see a CD you want, you can place an order immediately. Schwab will settle the purchase within one business day, and your money moves from your cash balance into the CD.

Schwab also publishes a CD rate tracker on its website that shows historical trends and current rates across different terms. This tool is free to use even if you do not have a Schwab account, though you cannot buy through it without one.

FDIC insurance and how it works with multiple CDs

Each CD you buy through Schwab is insured separately by the FDIC up to $250,000, as long as it comes from a different bank or credit union. This is one advantage of buying through Schwab rather than putting all your money in one institution: you can spread your deposits across multiple issuers and keep full insurance coverage on each.

For example, if you buy a $100,000 CD from Bank A and a $100,000 CD from Bank B through Schwab, both are fully insured. If you bought both from the same bank, only $250,000 of the combined $200,000 would be covered (though in this case both would be, since you are under the limit). The key is that each issuer's CDs are counted separately for insurance purposes.

Schwab provides a tool that tracks your FDIC coverage across all your holdings. You can see how much of your $250,000 limit you have used at each institution.

Buying a new CD versus the secondary market

When you buy a new CD directly from Schwab's offerings, you lock in the rate shown and hold it until maturity with no surprises. You pay no commission. If you need your money before the CD matures, you can sell it on Schwab's secondary market, but the price you receive depends on how interest rates have moved since you bought it.

If interest rates have risen since you purchased your CD, the value of your CD has fallen — buyers will pay less for a CD paying 3% when new CDs pay 4%. If rates have fallen, your CD is worth more. Schwab shows you the current market value of any CD you own, so you can decide whether to hold or sell.

The secondary market is useful if your circumstances change and you need access to your money, but it introduces the risk of loss. Holding to maturity eliminates that risk — you get back exactly what you put in plus the interest earned.

Minimum deposits and term options

Minimum deposit amounts vary by issuer and term. Some CDs have no minimum, while others require $1,000, $5,000, or more. Schwab displays the minimum for each CD in its listings, so you can filter for CDs that match your deposit amount.

Term lengths range from 3 months to 5 years or longer, depending on what the issuing banks are offering. Shorter terms typically pay lower rates; longer terms pay higher rates. Schwab updates its available terms daily as banks adjust their offerings.

Early withdrawal penalties and what happens at maturity

Each CD has an early withdrawal penalty stated in its terms. Penalties vary widely — some are a flat fee, others are a percentage of interest earned, and some are a percentage of principal. Schwab shows the penalty amount before you buy, so you know the cost if you need to withdraw early.

When your CD matures, Schwab will automatically renew it at the current rate for the same term unless you tell it not to. You can change this setting in your account preferences. If you do not want to renew, the principal and interest are deposited into your cash balance, and you can then move the money or buy a different CD.

Schwab Bank CDs versus third-party CDs

Schwab also offers CDs issued by Schwab Bank itself. These are not different from third-party CDs in how they work, but Schwab Bank CDs may have different rates or terms than what other banks are offering at the same time. You can compare Schwab Bank rates against other issuers in the same Schwab platform.

Schwab Bank CDs carry the same FDIC insurance as any other bank CD — $250,000 per account type. If you hold both a Schwab Bank CD and a regular savings account at Schwab Bank, they are insured separately.

Frequently Asked Questions

Can I buy a CD at Schwab if I do not have a brokerage account?

No, you need a Schwab brokerage account to purchase CDs through their platform. Opening an account is free and takes about 10 minutes online. You do not need to buy stocks or other investments — you can hold only CDs and cash if you choose.

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

The FDIC insures your CD up to $250,000 regardless of what happens to the issuing bank. If the bank fails, the FDIC steps in and pays you the full amount of your CD plus any accrued interest. Your money is protected even if the bank disappears.

Can I sell my CD before it matures?

Yes, you can sell any CD on Schwab's secondary market at any time. The price you receive depends on current interest rates — if rates have risen, you will receive less than you paid; if rates have fallen, you may receive more. Schwab charges no commission to sell.

Do I pay taxes on CD interest earned through Schwab?

Yes, CD interest is taxable as ordinary income in the year it is earned. Schwab sends you a 1099-INT form at tax time showing all interest paid. You report this on your tax return regardless of whether you withdrew the money or let it stay in the CD.

What if I want to move my CD to a different bank?

You can sell your CD on the secondary market and use the proceeds to buy a CD from a different issuer, but you may gain or lose money depending on interest rates. Alternatively, you can hold the CD until maturity and then move your money elsewhere. There is no direct transfer option for CDs like there is for savings accounts.