What is the current Charles Schwab CD rate?

As of June 2026, Charles Schwab offers brokered CDs with rates ranging from approximately 4.00% to 4.50% APY on terms from 3 months to 5 years. Rates vary by issuing bank and term. The best available rates are typically on 12-month brokered CDs. Schwab's marketplace aggregates offerings from multiple banks, so the specific rate you see depends on which institutions are participating at the time.

What is a brokered CD and how is it different from a bank CD?

A brokered CD is a certificate of deposit purchased through a brokerage firm like Schwab, Fidelity, or Vanguard — rather than directly from a bank. The CD is still issued by an FDIC-insured bank (up to $250,000 per bank), but you buy and manage it through your brokerage account. Key differences: brokered CDs can often be sold on the secondary market before maturity (avoiding early withdrawal penalties, though you may sell at a loss if rates have risen); you can buy CDs from multiple banks through a single Schwab account; and brokered CDs are generally not automatically renewable.

Does Schwab charge a fee to buy CDs?

Schwab charges no transaction fee for purchasing new-issue brokered CDs. There may be fees for purchasing CDs on the secondary market. The yield shown on new-issue CDs is the yield you receive — no fee is embedded separately. This is consistent with how most major brokerages price brokered CDs.

Are Schwab brokered CDs FDIC insured?

Yes. Each brokered CD purchased through Schwab is issued by an FDIC-insured bank and covered up to $250,000 per issuing bank per depositor. If you purchase CDs from multiple different issuing banks through Schwab, your FDIC coverage applies separately for each bank — giving you the ability to insure amounts well above $250,000 across your portfolio by diversifying across issuers.

Can I withdraw from a Schwab brokered CD before maturity?

Brokered CDs do not have a traditional early withdrawal penalty. Instead, to access funds before maturity you sell the CD on the secondary market through Schwab. The sale price depends on current interest rates — if rates have risen since you bought the CD, you may sell at a discount (loss). If rates have fallen, you may sell at a premium (gain). This is different from a bank CD where the penalty is a fixed number of days' interest.

Charles Schwab CD Rates 2026 — Brokered CDs, Terms, and How They Compare

Charles Schwab CD rates range from approximately 4.00% to 4.50% APY in June 2026, available through Schwab’s brokered CD marketplace. Unlike a bank CD opened directly at a branch or online bank, Schwab’s CDs are brokered CDs — purchased through your Schwab brokerage account from multiple FDIC-insured bank issuers. This creates both advantages (FDIC coverage across multiple banks, secondary market liquidity, no traditional early withdrawal penalty) and differences worth understanding before you invest.

Rates shown are as of June 2026 and change frequently. Log in to schwab.com to see current available rates from active issuers.

How Schwab CD Rates Work

Schwab does not issue CDs itself. Instead, Schwab’s Fixed Income marketplace aggregates CD offerings from dozens of FDIC-insured banks. When you buy a CD through Schwab:

You select from available new-issue CDs by term, rate, and issuing bank
Schwab purchases the CD on your behalf and holds it in your brokerage account
Interest is paid to your Schwab account (monthly, quarterly, or at maturity depending on the issuer)
At maturity, principal is returned to your Schwab account — brokered CDs typically do not auto-renew

Current Brokered CD Rates at Schwab (June 2026)

Term	Approximate APY Range
3 months	4.00–4.25%
6 months	4.10–4.35%
12 months	4.25–4.50%
18 months	4.00–4.25%
2 years	3.90–4.15%
3 years	3.75–4.00%
5 years	3.50–3.80%

Rates vary based on which banks are actively issuing CDs at any given time. The top of the range represents the best-available rate from the highest-yielding issuer at that term.

How Much Can You Earn?

On a $25,000 deposit at 4.40% APY in a 12-month brokered CD:

After 12 months: ~$25,1100 ($1,100 in interest)
After 2 years (2-year CD at 4.03% APY): ~$27,066 ($2,066 in interest)
After 5 years (5-year CD at 3.65% APY): ~$29,925 ($4,925 in interest)

Schwab’s brokered CDs appeal particularly to investors with larger lump sums — $25,000 to $250,000 — who want to maximize FDIC coverage while maintaining one account dashboard.

Brokered CD vs. Direct Bank CD

	Schwab Brokered CD	Direct Bank CD (e.g., Ally)
Rate competitiveness	4.00–4.50%	4.00–4.50%
FDIC coverage	Per issuing bank (up to $250K each)	Per bank ($250K total)
Early exit	Sell on secondary market (variable price)	Early withdrawal penalty (fixed days of interest)
Auto-renewal	Usually no	Usually yes (with grace period)
Minimum	Varies by issuer (often $1,000)	Often $0–$2,500
Multiple issuers	Yes — one account	No — one bank per account
Best for	Larger balances, investors already at Schwab	Savers wanting simplicity and predictable exit cost

FDIC Coverage Stacking — A Key Advantage

One of the strongest reasons to use brokered CDs is the ability to maintain full FDIC coverage on amounts exceeding $250,000. Through Schwab, you can hold CDs from 10 different issuing banks — each insured up to $250,000 — giving you up to $2.5 million in FDIC coverage from a single brokerage account.

For anyone with significant liquid savings or proceeds from a home sale, business exit, or inheritance, brokered CDs offer a way to earn competitive rates while staying within FDIC limits across the entire balance.

Secondary Market — How to Exit Early

If you need funds before a brokered CD matures, you can sell it on Schwab’s secondary market. The sale price depends on current interest rates relative to your CD’s coupon rate:

Rates have risen since purchase: Your CD’s fixed rate looks less attractive. You’ll sell at a discount — meaning you may receive less than face value
Rates have fallen since purchase: Your CD’s rate looks relatively attractive. You may sell at a premium — receiving more than face value

This is fundamentally different from a bank CD’s fixed early withdrawal penalty. The secondary market outcome is unpredictable — you could gain or lose principal. For money you might need before maturity, a bank CD with a known penalty (or Ally’s no-penalty CD) is more predictable.

Who Should Use Schwab CDs?

Best for:

Existing Schwab brokerage or investing clients who want to keep savings in one account
Investors with larger balances who need to stack FDIC coverage across multiple issuers
People comfortable with the brokered CD structure and secondary market mechanics
Savers who prefer to shop multiple bank CD rates in one marketplace

Consider direct bank CDs if:

You want simplicity and automatic renewal
Your balance is under $250,000 (no FDIC stacking advantage)
You want a no-penalty option (Ally)
You prefer a predictable exit cost

Written by WealthVieu

WealthVieu researches and writes data-driven personal finance guides using primary sources including the IRS, Bureau of Labor Statistics, Federal Reserve, and Census Bureau.

The content on Wealthvieu is for informational purposes only and should not be considered financial, tax, or investment advice. Consult a qualified professional before making financial decisions. Full disclaimer · Editorial policy