Exploring Edward Jones’ Certificate of Deposit Offerings for July 2024

Exploring Edward Jones' Certificate of Deposit Offerings for July 2024

With relatively high interest rates, CDs remain appealing to many investors. Finding the best CD rates can be tedious, but if you have a brokerage account with Edward Jones, adding CDs to your portfolio is straightforward. Here’s what you need to know.

**Edward Jones CD Rates**

When opening a CD, it’s important to understand the term length, maturity date, and most importantly, the annual percentage yield (APY). Here are the current Edward Jones CD rates:

– 3-month CD: 5.30% APY
– 6-month CD: 5.30% APY
– 9-month CD: 5.20% APY
– 1-year CD: 5.05% APY
– 18-month CD: 4.90% APY
– 2-year CD: 5.30% APY
– 3-year CD: 4.70% APY
– 4-year CD: 4.60% APY
– 5-year CD: 4.55% APY

**Edward Jones CDs: Quick Overview**

A certificate of deposit (CD) is a savings product offered by banks, credit unions, or brokerage firms like Edward Jones. It has a fixed term, usually ranging from one month to five or even ten years, with a guaranteed interest rate for the term’s duration. Here are some key features of Edward Jones CDs:

– **Financial Advisor**: Edward Jones provides financial advisors who offer guidance, which is a benefit of opening brokered CDs with them.
– **Minimum Investment**: A $1,000 minimum investment is required to purchase a CD from Edward Jones.
– **Brokerage Account**: With an Edward Jones account, you can buy CDs from multiple banks.
– **CD Secondary Market**: You can resell your CD on the secondary market, potentially getting your money back before the term ends without incurring early withdrawal fees.

**How Edward Jones CD Rates Compare**

Here’s a comparison of Edward Jones CD rates with other options for three-month and one-year CDs:

– Edward Jones: 3-month CD at 5.30%, 1-year CD at 5.05%
– Fidelity: 3-month CD at 5.30%, 1-year CD at 5.10%
– Discover® Bank: 3-month CD at 2.00%, 1-year CD at 4.70%

**Why Buy a CD From Edward Jones?**

Buying CDs from Edward Jones offers several advantages over purchasing directly from a bank:

– **Multiple Banks**: You can buy CDs from various banks within your Edward Jones brokerage account, allowing you to compare rates easily and get some of the best rates available. Additionally, since the CDs are FDIC insured, you can exceed the $250,000 FDIC limit and still be covered.
– **Resell Your CDs**: Unlike traditional bank CDs, which incur penalties for early withdrawal, Edward Jones CDs can be resold on the secondary market. This means you can potentially get your money back before the term ends and even make a profit depending on interest rate movements.
– **Interest Payments**: Interest on Edward Jones CDs cannot remain on deposit; it must be paid out. However, it can be deposited into your money market or bank deposit account at Edward Jones, where it will continue to earn interest, albeit at a potentially lower rate than the CD.

**Work With a Financial Advisor**

Edward Jones offers financial advisors who can provide investment advice. While you don’t have to work with an advisor, they are available if you need help. There is a fee for their services, and sometimes a minimum investment amount is required. If you’re looking for assistance in reaching your long-term financial goals, an advisor might be beneficial.