Yes, Charles Schwab offers certificates of deposit through its banking subsidiary

Charles Schwab Bank offers CDs (certificates of deposit) as part of its deposit products. You can open a CD directly through your Schwab brokerage account or through Schwab Bank's website. Schwab also offers access to CDs from other banks through its CD marketplace, which lets you compare rates and terms across multiple institutions without opening separate accounts.

A CD is a savings product where you deposit money for a fixed period — typically ranging from three months to five years — and receive a set interest rate. In exchange for leaving your money untouched until the maturity date, you earn a higher rate than you would in a regular savings account. If you withdraw the money before maturity, you pay an early withdrawal penalty, which Schwab discloses upfront.

Key Takeaways

  • Schwab Bank CDs let you lock in a fixed rate for terms ranging from three months to five years, with rates that vary based on the term length and current market conditions.
  • You can open a Schwab Bank CD through your existing brokerage account or directly through Schwab Bank if you don't have a brokerage account.
  • Schwab's CD marketplace shows you rates from multiple banks so you can compare before committing, though you'll need to open an account at each bank to purchase those CDs.
  • Early withdrawal penalties vary by term length and are disclosed before you open the CD, so you know the cost upfront if you need the money early.
  • Schwab CDs are FDIC-insured up to $250,000 per depositor per bank, which means your principal is protected even if the bank fails.

How to open a Schwab Bank CD through your brokerage account

If you already have a Charles Schwab brokerage account, you can open a CD without any additional paperwork. Log into your account, navigate to the Banking section, and select CDs. You'll see current rates for different term lengths — typically three months, six months, one year, two years, three years, and five years. Choose the term that matches when you'll need the money.

Enter the amount you want to deposit. Schwab will show you the early withdrawal penalty for that specific term before you confirm. Once you review and accept the terms, the CD opens when ready and the funds transfer from your linked bank account or money market fund. Your CD will mature on a specific date, and Schwab will notify you before that date about what happens next — usually the money returns to your account or you can roll it into a new CD at the current rate.

Schwab's CD marketplace and how it differs from Schwab Bank CDs

Beyond Schwab Bank's own CDs, you can browse CDs from other banks through Schwab's CD marketplace. This tool shows you rates and terms from multiple institutions side by side, so you can see whether a competitor bank is offering a higher rate for the term you want. The marketplace updates regularly as rates change across the market.

The trade-off is that to purchase a CD from another bank through the marketplace, you must open an account at that bank. Schwab doesn't hold the CD for you — you own it directly at the issuing bank. This means you'll have multiple CD accounts to track if you buy from several banks, though you can manage them all from your Schwab dashboard. The benefit is that you're not limited to Schwab's rates; you can chase higher yields if another bank is offering better terms.

Understanding early withdrawal penalties and maturity options

Every CD has an early withdrawal penalty if you take your money out before the maturity date. Schwab discloses this penalty as a specific number of months of interest — for example, a one-year CD might have a penalty of three months of interest. If you withdraw early, Schwab subtracts that penalty from your principal and interest, so you could end up with less than you originally deposited.

When your CD reaches maturity, Schwab gives you a grace period — usually five to ten business days — to decide what happens next. You can let the CD renew automatically at the current rate, withdraw the money, or move it to a different product. If you don't take action during the grace period, Schwab will renew it automatically, so check your account around the maturity date if you want to make a different choice.

FDIC insurance and how your CD is protected

Schwab Bank CDs are covered by FDIC insurance up to $250,000 per depositor per bank. This means if Schwab Bank fails, the Federal Deposit Insurance Corporation will reimburse you for your deposit up to that limit. If you have multiple CDs at Schwab Bank, they count toward the same $250,000 limit — so if you have a $150,000 CD and a $100,000 CD, only $250,000 total is insured.

CDs you purchase through Schwab's marketplace are insured by the bank that issued them, not by Schwab. Each issuing bank has its own $250,000 FDIC limit, so if you buy a CD from Bank A and a CD from Bank B, each is insured separately up to $250,000. This is one reason some people use the marketplace — to spread deposits across multiple banks and increase their total FDIC coverage.

How CD rates at Schwab compare to the broader market

Schwab's CD rates change based on what the Federal Reserve does with interest rates and what other banks are offering. When rates are rising, Schwab typically raises its CD rates within days or weeks. When rates are falling, Schwab's rates fall too. You can check Schwab's current rates on their website without opening an account, so you can see where they stand relative to other banks you're considering.

Schwab is a large, well-known institution, so its rates are usually competitive but not always the highest available. Online banks and credit unions sometimes offer higher rates on specific terms because they have lower overhead costs. This is why Schwab's marketplace exists — to let you see whether you'd earn more elsewhere. If Schwab's rate is close to the market rate and you want to keep everything in one place, that convenience may be worth a slightly lower yield.

Frequently Asked Questions

Can I open a Schwab CD if I don't have a brokerage account?

Yes. You can open a CD directly through Schwab Bank's website without a brokerage account. You'll need to provide your personal information and link a bank account for the initial deposit, but you won't need to fund a brokerage account or buy any investments.

What happens if I need the money before the CD matures?

You can withdraw it, but you'll pay an early withdrawal penalty. The penalty is typically a set number of months of interest, which Schwab deducts from your balance. You'll still get your principal back, but you may earn less interest than if you'd left the money alone.

Can I add money to a CD after I open it?

No. CDs are fixed-term, fixed-amount products. Once you open a CD, you can't add more money to it. If you want to deposit additional funds, you'd need to open a separate CD.

Do I have to renew my CD when it matures?

No. When your CD matures, you can withdraw the money, move it to a savings account, or roll it into a new CD. Schwab will renew it automatically at the current rate if you don't take action during the grace period, but you're not required to renew.

Are Schwab CDs FDIC insured?

Yes. Schwab Bank CDs are FDIC-insured up to $250,000 per depositor. CDs you purchase through the marketplace are insured by their issuing bank, also up to $250,000 per bank, so you can spread deposits across multiple banks to increase coverage.