Charles Schwab CD Rates and Features for 2025
Written by
Rudri Patel
Edited by
Melanie Grafil
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A certificate of deposit (CD) from Charles Schwab guarantees a high interest rate for the term you choose. Charles Schwab offers six different CD options, which vary in term length from three months to two years.
Current Charles Schwab CD Rates: August 2025
Here’s a look at the current Charles Schwab CD rates for August 2025:
| CD Term | Annual Percentage Yield (APY) | Minimum Deposit |
|---|---|---|
| 3 months | $1,000 | |
| 6 months | $1,000 | |
| 9 months | $1,000 | |
| 12 months | $1,000 | |
| 18 months | $1,000 | |
| 2 years | $1,000 |
Pros and Cons of Charles Schwab CDs
Charles Schwab CDs have the following advantages and disadvantages that savers should consider:
Pros
- Schwab CDs yield about twice the national average.
- The interest rate on a CD is guaranteed for the entire term.
- Brokered CDs have no early withdrawal penalty.
- All Schwab CDs are FDIC-insured.
Cons
- If you withdraw early, Schwab will attempt to sell your CD on the secondary market, which may result in a loss and a trading fee.
- Some Charles Schwab CDs are callable, which means they could terminate before maturity.
How Much Can You Earn With a Charles Schwab CD?
Here’s a look at how much your Charles Schwab CD account could earn over a few different term lengths:
| Deposit Amount | Term Length | APY | Estimated Interest Earned* |
|---|---|---|---|
| $1,000 | 3 months | $10.51 | |
| $2,000 | 6 months | $40.98 | |
| $4,000 | 1 year | $174.00 | |
| $5,000 | 2 years | $449.68 |
How To Open a Charles Schwab CD Account
You can open a Charles Schwab CD account easily from your internet-equipped device.
- To purchase a CD from Charles Schwab, you’ll first need to have a brokerage account.
- You can open an account on the website. Be prepared to answer some questions about your employment and any other investments you have.
- Once you have a brokerage account, you can purchase a CD online by selecting “Trade,” choosing the account and picking the CD you want.
Qualification Requirements To Know
- Must be 18 years old
- Be a U.S. citizen or a lawful permanent resident with a U.S. physical address
- Have a valid Social Security number
- Have a U.S.-based phone number
Good To Know
Charles Schwab brokers CDs from many banks, so read the product details carefully before you invest. Coupled with the Schwab Investor Checking account, it might be worth opening this bank account even if you invest in Schwab CDs.
Charles Schwab CD Rates vs. Other Banks
Charles Schwab CD rates are competitive, but how do the rates compare with other bank rates? Here’s a side-by-side comparison.
| Bank | 1-Year CD Rate | 5-Year CD Rate | Minimum Deposit |
|---|---|---|---|
| Charles Schwab | N/A | $1,000 | |
| Capital One* | $0 | ||
| Popular Direct | $10,000 | ||
| Ally Bank | $0 | ||
| Discover® Bank, Member FDIC | $0 |
Is a Charles Schwab CD Right for You?
Charles Schwab CDs can be a smart option in certain situations — but they’re not ideal for everyone.
Ideal For
- Investors who already have a Charles Schwab account
- People looking for brokered CDs with high APYs
- Those who are comfortable managing their account online
Not Great For
- Savers who need to access funds early
- People who are uncomfortable with a brokerage firm
- Investors who want a smaller minimum deposit
Pro Tips for Getting the Best CD Rate
Want the best rate on your CD account? Here are some tips that may help:
- Consider relationship banking perks: You can get a better CD rate if you are a long-time customer or have several accounts.
- Compare multiple terms: Compare rates at multiple banks to find the best APY that works for you.
- Look for promotional or limited-time offers: Banks often offer special rates or promotional offers on their CDs. Check online or ask in person for those offers.
Charles Schwab CD Rates FAQ
Here are the answers to some of the most frequently asked questions about CDs and the product offerings from Charles Schwab.- What is the minimum deposit for a Charles Schwab CD?
- The minimum deposit requirement is $1,000 for a Charles Schwab CD.
- Do I need a Charles Schwab account to open a CD?
- Yes, you need to have an existing brokerage account to open a CD at Charles Schwab.
- Can I open a Charles Schwab CD online?
- Yes, you can open a Charles Schwab CD online.
- What happens if I withdraw funds before the term ends?
- Since Charles Schwab is a brokerage firm, if you choose to withdraw from your CD early, your CD will be sold on the secondary market. Although there won't be an early withdrawal penalty, it may result in a loss or gain depending on interest rates and brokerage fees.
- Are Charles Schwab CD rates competitive in 2025?
- Rates are competitive. They range from 4.10% to 4.40% APY.
Melanie Grafil, Daria Uhlig and Karen Doyle contributed to the reporting for this article.
Rates are subject to change; unless otherwise noted, rates are updated periodically. All other information on accounts is accurate as of July 9, 2025.
*Capital One interest rates accurate as of July 9, 2025. See website for all current rates.
Editorial Note: This content is not provided by any entity covered in this article. Any opinions, analyses, reviews, ratings or recommendations expressed in this article are those of the author alone and have not been reviewed, approved or otherwise endorsed by any entity named in this article.
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