APY GUY: Maximize Your Savings & Earnings

Lauren Graves

Navy Federal Credit Union CD Rates – Up to 5.30% APY!

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Navy Federal Credit Union (NFCU) is the largest credit union in the U.S. with $165.2 billion in total assets and just over 12 million members.

They offer a full suite of NCUA-insured deposit accounts including CDs (certificates of deposit), money market accounts, savings accounts, checking accounts, and IRAs.

You must, however, have a family member (or household member) that served in any branch of the military to join the credit union. You can learn more about NFCU’s eligibility further below.

To see if NFCU and their deposit accounts are right for you, continue reading our review below.

Navy Federal Credit Union CD Rates + Account Details

Navy Federal Credit Union’s CDs (certificates of deposit) are federally insured by the NCUA up to $250,000 per depositor or $500,000 for joint accounts.

Their most competitive CD is their Special Easy Start CD with a 12 month term and an APY of 5.30%. To earn this yield, however, you must have a linked NFCU checking account and set up a recurring direct deposit of $10 or more per month. There is also a maximum deposit limit of $3,000 for this account.

They also offer 4 additional “Easy Start” CDs that do not require a checking account. All Easy Start CDs come with a minimum deposit requirement of $50 and the ability to add funds over time, but only the 12 month Special EasyStart CD comes with the $3,000 maximum.

CD rates surveyed on September 11, 2023.

Special EasyStart CD Rate

$50 minimum requirement and $3,000 maximum allowance.

CD TermAPY
12 months*5.30%
*Must have a checking account with direct deposit set up.

EasyStart CD Rates

$50 minimum requirement and no maximum.

CD TermAPY
6 months0.40%
12 months4.85%
18 months4.45%
24 months4.15%
No checking account required to earn the APY (annual percentage yield).

We should also note that NFCU members may open multiple EasyStart CDs but can only open one of the 12 month special EasyStart CDs per individual.

Standard CD Rates

All of NFCU’s standard CDs require a minimum deposit of $1,000.

CD TermAPYAPY
deposit amount:$1,000 – $99,999.99$100k +
3 months4.00%4.05%
6 months0.45%0.50%
12 month4.90%4.95%
18 months4.50%4.55%
24 months4.20%4.25%
3 year4.20%4.25%
5 year4.00%4.05%
7 year4.00%4.05%
APY = Annual Percentage Yield

To put these rates in perspective, the current national average for a 12 month CD and a 60 month CD sit at 1.74% and 1.41% APY, respectively, according to FDIC data.

That said, the top yields from online banks and nationally available credit unions are hovering around 5.50% and 4.50% APY for the same respective terms.

How do NFCU’s CD Rates Compare?

Take a look at the 2 tables below. The first compares Navy Federal Credit Union’s best CD rate with some of the best CD rates offered by other large credit unions. The second compares Navy Federal Credit Union’s best CD rate with the top rates offered by various FDIC-insured online banks.

NFCU CD Rates vs Other Credit Unions

Credit UnionBest CD Rate (APY)
Delta Community Credit Union5.00%
First Tech Credit Union5.35%
Mountain America Credit Union5.50%
Navy Federal Credit Union4.95%
CD rates surveyed September 11, 2023.

NFCU CD Rates vs Online Banks

Online BankBest CD Rate (APY)
Ally Bank5.00%
Capital One5.25%
Synchrony Bank5.25%
Navy Federal Credit Union4.95%
CD rates surveyed September 11, 2023.

How Much Can You Make with a CD from NFCU?

How much money you earn with a Navy Federal Credit Union CD is going to depend on your deposit size, the CD term you choose and its going APY (annual percentage yield). Below is a table displaying earnings from a handful of NFCU’s standard CD accounts assuming a deposit size of $100,000.

CD TermAPYEarnings
12 months4.95%$4,950.00
2 years4.25%$8,680.63
3 years4.25%$13,299.55
5 years4.05%$21,958.04
Earnings = Total sum of all interest payments through maturity.

Grace Period and Early Withdrawal Fees

Upon the maturity of your Navy Federal Credit Union CD you will be provided with a generous 21 day grace period in which you may modify your CD or close it out. If nothing is done during this period, your CD will automatically renew with the same term and the going APY at that time.

If you need funds prior to your CD’s maturity, you will face an early withdrawal penalty fee. The fee structure is as follows:

  • CDs with terms of 12 months or less will be charged fees equal to whichever option costs less: 90 days’ interest or all dividends on the amount withdrawn since issuance/renewal.
  • CDs with terms greater than 12 months will cost either 180 days’ interest or all dividends on the amount withdrawn since issuance/renewal and from terms of five years or more will cost 365 days’ interest or all dividends.

Navy Federal Credit Union Money Market Rates + Account Details

Navy Federal money market savings accounts are fine, but you’ll see that they’re not particularly attractive.

Money Market Rates

BalanceAPY
$0 – $2,4990.00%
$2,500 – $9,9990.95%
$10k – $24,9991.06%
$25k – $49,9991.10%
$50K +1.50%
APY = Annual Percentage Yield

The current national average for money market accounts sits at just 0.62% APY, however better rates can be had through FDIC-insured online banks which now feature annual percentage yields above the 5.00% mark.

A $2,500 minimum average daily balance is required to earn interest, but you won’t be charged a fee if your balance drops below this. Dividends are compounded and credited monthly. For every transaction you make over the six transaction limits enforced under federal regulation D, you’ll be charged $10.

If you can maintain higher balances in your money market account, you may be eligible for jumbo rates which are slightly better than those listed above. See their jumbo rates below:

Jumbo Money Market Rates

BalanceAPY
$0 – $99,9990.25%
$100k – $249,9991.65%
$250k – $499,9991.85%
$500k – $999,9992.05%
$1m +2.25%
APY = Annual Percentage Yield

Other Savings Accounts Offered Through Navy Federal Credit Union

An initial share with Navy Federal costs $5 and gets you a Share Savings Account. This is also how much you’ll need to keep in your savings account. With an APY of 0.25%, this savings product isn’t ideal for growing your money, but it doesn’t come with many inconveniences such as monthly maintenance or low balance fees. It does come with a $3 quarterly inactivity fee if your account is inactive for 12 months during any given quarter. Dividends are compounded and credited monthly.

Navy Federal also offers a SaveFirst Account with an APY of 0.40%. With a slightly better rate of return but equal minimum deposit, this account is a better option for anyone wanting to put money away for designated purposes like weddings or vacations. Select a term between 3 months and 5 years and watch your deposit grow (a little). Dividends are compounded daily and credited monthly. This savings account is going to earn you more than a share savings account, but a money market account might be a better option.

Navy Federal Credit Union Eligibility and History

NFCU was founded in 1933 by Navy Department employees as the Navy Department Employees’ Credit Union of the District of Columbia.

Dropping the unwieldy name and extending membership to all Navy employees worldwide (rather than just those in D.C.), the credit union became known as the Navy Federal Credit Union in 1954.

Fast forward to today and you no longer have to be affiliated with the Navy to become a member of Navy Federal, but you do need to have military ties within your family to join.

To be eligible to join Navy Federal, you must have ties to the Department of Defense, the armed forces, the National Guard, or have a family member that does. Navy, Marines, Army, Air Force, Space Force, and Coast Guard active duty and retired members all qualify for membership. This credit union is not open membership and you may not join if you do not meet the above membership criteria.

The good news is that you don’t have to live near Virginia to access Navy Federal branches or ATMs. There are 350 branches worldwide, some on military bases and some overseas in 26 international locations. In the U.S., Navy Federal has branches in metro D.C., Virginia, California, and Florida. They do not participate in shared branching, but they are part of a network of over 30,000 co-op ATMs.

T-Mobile MONEY – Earn up to 4.00% APY!

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T-Mobile partnered with Customers Bank to launch T-Mobile MONEY back in 2018. The account is FDIC-insured through Customers Bank up to the applicable limits.

If you’re not a T-Mobile customer, don’t worry, you don’t need to be to open the account, however, you won’t be eligible for the best APY (annual percentage yield) on your balance unless you have a wireless plan with them.

The account earns either 4.00% or 2.50% APY on balances up to $3,000 depending on whether or not you can meet their criteria.

To meet the criteria you must:

  1. Have a qualifying T-Mobile wireless plan.
  2. Register for perks
  3. Make at least 10 qualifying transactions with your T-mobile MONEY debit card per month. Instant payments to friends and family count towards this number as well.

If you do meet the criteria, you’ll earn 4.00% APY up to $3,000 followed by 2.50% APY on cash balances above that mark and if you don’t meet the criteria, you’ll earn 2.50% APY on your entire balance.

When the account launched in 2018 it provided these same yields – which were highly competitive at the time – but have failed to increase with the Fed’s series of rate hikes beginning in 2022.

To learn more about T-Mobile MONEY continue reading our review below.

T-Mobile MONEY Interest Rate + Account Details

T-Mobile MONEY requires a minimum opening deposit and an average daily balance of at least $1.00 in order to earn interest. There are no minimum balance requirements to avoid fees or account closure.

APY

Criteria MetBalanceAPY
Yes$3,000 or less4.00%
Yesmore than $3,0002.50%
No$3,000 or less2.50%
Nomore than $3,0002.50%
APY = Annual Percentage Yield

To put these yields into perspective, take a look at the current national averages for similar accounts (source: FDIC):

  • Interest checking – 0.07%
  • Money market account – 0.62%
  • Savings account – 0.43%

That said, top yields from FDIC-insured online banks are hovering around 5.00% APY for online savings accounts and 2.0% APY for interest bearing checking accounts. Most of the checking accounts come with monthly requirements to earn a high yield. These include things like setting up a direct deposit for each month and opting to receive e-statements.

How does T-Mobile MONEY Compare?

To get a better idea of how T-Mobile MONEY’s APY (annual percentage yield) stacks up against the competition, we’ve compared it to other variable rate deposit accounts in the table below. All of the accounts below come with a debit card.

AccountBalanceAPY
Gesa Credit Union SmartPlus Checkingup to $5,0007.00%
FNBO Direct CheckingAll balances0.15%
SoFi CheckingAll balances0.50%
T-Mobile MONEYup to $3,0004.00%
Rates (APYs) surveyed on September 8, 2023.

Pros and Cons

Take a look at the Pros and Cons of the T-Mobile MONEY account below.

Pros:

✅ Early access to paycheck (up to 2 days early) once you set up direct deposit.

✅ Free debit card (Mastercard) with free access to 55,000 ATMs.

✅ Save $5 per eligible phone line per month when you pay with your T-Mobile MONEY debit card and set up AutoPay.

✅ Get cash back dining out, travel and more when you use your T-Mobile MONEY debit card through participating businesses. Learn more here.

✅ No overdraft fees, plus they’ll spot you $50 if you overdraft when criteria is met.

✅ Mobile check deposit via their IOS or Android app.

✅ High interest rate on first $3,000 when criteria is met.

✅ Low minimum to open and no monthly balance requirements.

✅ FDIC insurance up to $250,000.

Cons:

🛑 No physical branches.

🛑 Very difficult to deposit cash and you’ll likely be charged 3rd party fees to do so. See FAQ section below for more details.

Compounding and Crediting Interest

Interest is compounded monthly and credited back to your account monthly.

Transferring MONEY

There are a few different ways to move MONEY in and out of this account.

First, you may fund the account via:

  • Direct deposit
  • Mobile check deposit
  • ACH bank transfer
  • Cash deposit (at more than 65,000 participating merchants including select Walgreens, Walmart, 7-Elevens and CVS locations)

You may make a transfer as a one-time transaction or set up recurring transfers from a linked bank account to fund this account.

For recurring payments going out of your account you can set up the bill pay feature. There is no charge for using this service. Transactions up to $10,000/each are permitted when using bill pay and there is a daily limit of $20,000.

You can also send money to friends and family directly from your MONEY account.

Here’s how:

  1. Go to Move money.
  2. Select Pay friends > Send money. 
  3. Select a friend to receive the payment (the recipient must accept your friend request to appear on this list).
  4. Review and confirm the recipient and payment amount before completing the transfer. Payments can’t be canceled or returned once sent.

📌 Please note: T-Mobile MONEY does not support requesting payments from friends at this time.

There is a $500 daily limit when sending money to friends or family and a $5,000 monthly limit (30 day rolling period).

📌 Please note: Incoming and outgoing wire transfers are not permitted for any account holders.

T-Mobile MONEY Debit Card

This account comes with a free Mastercard debit card that does not charge foreign transaction fees or card replacement/activation fees.

You’ll have free access to 55,000 ATMs worldwide and T-Mobile does not impose a fee for using 3rd party ATMs (although the 3rd party likely will).

You can withdraw up to $500 per day from ATMs using this card and make up to $2,500 in combined PIN, point-of-sale, or signature-based transactions per day. PIN transactions may not exceed $500 each.

Early Direct Deposit

This account offers early direct deposit to all account holders. To use this feature, just link your direct deposit to this account and it will automatically become eligible for early transfer. And during tax season, you can get your refund up to three days early when you choose to receive it via direct deposit and use your T-Mobile MONEY account.

Overdraft Protection

Overdraft protection up to $50 is also available, but it is offered exclusively to T-Mobile phone customers. There is no fee for using overdraft protection. To enroll, you need to make at least 10 qualifying purchases using your debit card in the first month, and then you will receive this benefit for as long as your account is open.

T-Mobile Money FAQs

Still have questions about the T-Mobile Money account? Take a look at what other consumers are asking around the web along with our responses below.

Is T-Mobile Money a Real Bank?

No. T-Mobile Money is not a bank themselves, but has partnered with Customers Bank to create T-Mobile Money. Funds held in a T-Mobile Money account are federally insured by the FDIC through Customers Bank (FDIC# 34444) up to $250,000 per depositor or $500,000 on joint accounts.

Does T-Mobile Money Offer Joint Accounts?

Yes. T-Mobile Money offers joint accounts, but only one checking, one savings account and one shared savings account can be opened per customer.

Does T-Mobile Money Offer Business Accounts?

No. T-Mobile Money is for individual consumers and their family members only per the time of this writing.

Who is Customers Bank?

Customers Bank, based out of Phoenixville, PA, was founded in 2009 and has over $22 billion in assets. They offer banking and loan services in Florida, Illinois, Massachusetts, New Hampshire, New Jersey, New York, North Carolina, Pennsylvania, Rhode Island and Texas.

Bank of America $200 Checking Account Bonus!

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promotions.bankofamerica.com

Bank of America is known for throwing around cash bonuses to incentivize new account sign-ups. Today, however, they only have a business checking account promotion running. It’s a $200 bonus for all new Bank of America business checking account holders and it’s available through the last day of the year – December 31, 2023.

To see how to earn the $200 bonus and avoid the monthly service fees that come with both business checking account options from Bank of America then continue reading below.

📌 Please Note: There are no consumer checking account promotions available with Bank of America per the time of this writing. We will update this post once/if a new one is offered. BofA most recently had a $100 sign up bonus that expired earlier this year.

How to Earn the $200 New Checking Bonus

Right now there are 2 Bank of America business checking accounts that provide the $200 sign up bonus. These are:

  1. Business Advantage Fundamentals™ Banking
  2. Business Advantage Relationship Banking

To earn the $200 bonus for either account complete the following 3 steps:

  1. Open a new business checking account by December 31, 2023.
  2. Make $5,000 in qualifying deposits within 30 days of opening.
  3. Maintain an average daily balance of $5,000 for 90 days.

“Qualifying deposits” just means new money to Bank of America. This can not be money that is held (or has previously been held) in another Bank of America account or Merrill investment account.

How to Avoid the Fees

Depending on which business account you select, you’ll have to meet certain monthly requirements to avoid a service fee. The fees are as follows:

  • Business Advantage Fundamentals™ Banking – $16.00 or $0.00
  • Business Advantage Relationship Banking – $29.95 or $0.00

You can avoid the $16.00 fee from the Business Advantage Fundamentals™ Banking account if you do any of the following:

  • Maintain an average daily balance of $5,000.
  • Spend at least $250 in new net purchases with your business debit card.
  • Become a member of Preferred Rewards for Business.

You can avoid the $29.95 fee from the Business Advantage Relationship Banking account if you do any of the following:

  • Maintain an average daily balance of $15,000.
  • Become a member of Preferred Rewards for Business.

How to Apply

To get started, go here and select which checking account you’d like to open. Once the application process begins, you’ll want to have the following information handy to expedite the process:

  • Name of business and physical address
  • Tax ID Number for the business
  • State(s) the business operates in and where it was formed
  • Date the business was established
  • Social security number and date of birth of business owner(s)

You’ll be able to fund your account during the application process. This can be done by transferring money from another bank, writing a check or using a debit card. If transferring money from another bank you’ll need the following:

  • Routing number of current bank or credit union.
  • Bank account number where funds will be withdrawn from.

Once approved you’ll need to send a signature card through traditional mail or take the card to a local Bank of America branch.

Once your account is open you can access online banking. You can also expect your checks and business debit card to arrive within 7-10 business days upon account opening.

Wells Fargo Checking Account Bonus – $300 [Nationwide]

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Yes, you read that right–a $300 checking account bonus is available to all new Wells Fargo Everyday Checking account customers that meet the qualifying requirements.

Wells Fargo routinely proves how much they want your business with excellent welcome offers such as this one.

To see how to snag this bonus and avoid the $10 monthly service fee associated with the Wells Fargo Everyday Checking account, continue reading our review of this bonus offer below.

How to Get the $300 Bonus

image credit: accountoffers.wellsfargo.com

The $300 bonus is for new customers to Wells Fargo who open the Everyday Checking account. This is Wells Fargo’s most popular checking account and can be opened with just $25.00.

Complete These Steps

  1. Use this link and select whether you’ll be opening the account online or at a local Wells Fargo branch. If you intend to open it in a branch, you’ll have to enter your email before clicking the “Open in Branch” button. A coupon code will then be sent to your email which you can present to a Wells Fargo representative.
  2. Deposit at least $25 into your new Everyday Checking account before September 26th.
  3. Receive a total of $1,000 or more in qualifying direct deposits to the new checking account within 90 days from account opening (the qualification period).
  4. Your $300 bonus will then be deposited into your account within 30 days of meeting the requirements in step 3.

The $1,000 direct deposit requirement is fairly standard for checking account bonus offers like this. Just remember this can be in the form of salary, ACH transfers from an employer, social security, income from a rental property, side-hustle or small business, etc.

Finally, you must have a positive balance for this entire period in the account (and it goes without saying, but the account must not be closed for any reason).

If you do not meet these offer requirements within 90 days of opening your account, you will not receive the bonus. But if you ​do​ follow these steps, the bonus will be automatically deposited into your checking account within 30 days. Please keep in mind that this bonus will be considered taxable income.

📌 Please Note: Certain groups of people will not be eligible for this offer, including:

  • Current owners of Wells Fargo consumer checking accounts,
  • Wells Fargo employees, and
  • Any individuals that have received a bonus from Wells Fargo for opening a new checking account within the past year.

Avoid Fees

As with most standard checking accounts offered by big banks, the Wells Fargo Everyday Checking account comes with a $10 monthly service fee that can be waived in a few different ways.

If any of the following criteria are met or apply to you, the $10 monthly service fee will be waived.

  1. You are between the ages of 17 and 24.
  2. You maintain an average daily balance of at least $500.
  3. You set up direct deposits totaling $500 or more (this does not include peer-to-peer transfers or mobile deposits).
  4. You link the Everyday Checking account with a Wells Fargo Campus ATM Card or Campus Debit Card in good standing.

Final Thoughts

This is a fairly generous checking account bonus from Wells Fargo. Typically large banks tend to dangle $50, $100 or in some cases $200 bonuses to new customers as an incentive to join their bank.

If you miss this offer, don’t worry, Wells Fargo usually runs these promotions multiple times per year and/or extends the deadlines.

Vanguard CD Rates – Now up to 5.75% APY!

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Vanguard is an investment management company that has been around since 1975. They are the largest provider of mutual funds and the second largest provider of exchange-traded funds (ETFs). They service customers worldwide and have over $8.5 trillion in assets under management.

They also offer competitive APYs (annual percentage yields) on their brokered CDs (certificates of deposit).

You can purchase new issue CDs and secondary market CDs through Vanguard. To see if a brokered CD from Vanguard is right for you, continue reading our review below.

Vanguard CD Rates + Account Details

image credit: vanguard.com

All of Vanguard’s CDs are federally insured by the underlying issuer. Vanguard only purchases FDIC-insured CDs to resell to their clients.

The brokered CDs available at Vanguard can change regularly as Vanguard may choose to purchase different CD accounts from different banks on an ongoing basis. The good news is that because Vanguard purchases these CDs in bulk they can obtain higher rates from the issuer than an individual may receive going to the bank directly.

To find out which CDs are available at any given time, you can run a quick search on Vanguard’s site in their fixed income section or call an agent.

If you’re scanning Vanguard’s CDs online, you can search by the issuer, term length, yield, or quantity. A Vanguard broker can also help you choose a CD that fits your investment goals and target date.

Here is a sample of the current terms and CD rates available for new-issue CDs through Vanguard (surveyed August 14, 2023):

CD Rates

Term LengthAPY
1 – 3 months5.35%
4 – 6 months5.45%
7 – 9 months5.50%
10 – 12 months5.65%
13 – 18 months5.75%
2 years5.60%
3 years5.45%
4 years5.45%
5 years5.45%
7 yearsNA
10+ years5.50%
APY = Annual Percentage Yield

To put these in perspective, the national average rate for a 12 month and a 60 month CD sit at just 1.76% APY and 1.41% APY, respectively, according to FDIC data. However, some online banks and nationally available credit unions are paying over the 5.50% and 4.50% APY mark for the same respective terms.

How do Vanguard’s CD Rates Compare

If you want to see how Vanguard’s CD rates compare against other major brokerages then take a look at the table below. This displays the best CD rate offered from each major brokerage and the associated term.

BrokerageBest APYCD Term
Vanguard5.75%13-18 months
Charles Schwab5.65%10-18 months
Edward Jones5.35%12 months
Fidelity5.40%12 months
CD rates surveyed on August 30, 2023.

How Do Vanguard’s CD Rates Compare to Online Bank CD Rates

Take a look at the table below to see how Vanguard’s CD rates compare to popular online banks with competitive yields on their CDs.

Bank / InstitutionBest CD Rate (APY)CD Term
Ally Bank5.00%9, 18 months
Capital One5.15%18 months
Synchrony Bank5.25%12 months
Vanguard5.75%13 – 18 months
CD rates surveyed on August 30, 2023.

How Much Can You Earn with a Vanguard CD

If you’re curious about how much money you can earn in interest with a Vanguard CD then take a look at the table below. This shows how much you’d earn in total interest payments for a few of Vanguard’s CD accounts. It assumes a deposit size of $10,000.

CD TermAPYTotal Earnings
6 months5.45%$268.89
12 months5.65%$565.00
18 months5.75%$874.78
120 months5.50%$7,081.44
Total Earnings = The sum of all interest payments through maturity.

What Is a Brokered CD

If you’re not familiar with brokered certificates, they differ from traditional certificates in a few key ways.

The main one being that Brokered CDs are not issued by the actual brokerage themselves. They are issued by banks and/or credit unions that have FDIC insurance (or NCUA insurance if a credit union) and are then resold by the brokerage firm to their clients.

The primary benefits of a brokered CD are:

  • They can offer higher yields than traditional CDs because brokerages buy CDs in bulk which enables them to obtain higher rates than an individual would going to that bank directly for a single CD.
  • It expands your FDIC coverage. Because you can open multiple CDs from multiple banks through your brokerage, you will receive your full $250,000 in FDIC coverage for each deposit you open. This way you can invest more money in CDs without sacrificing FDIC coverage and with the convenience of managing all your CD accounts with one broker.
  • Flexibility. Because these are brokered securities, you may choose to sell your CD before it matures on the secondary market.

Both standard certificates of deposit and brokered certificates are considered to be low-risk investments because they earn a fixed interest rate until maturity and guarantee full principal and interest. If you sell a brokered CD, there is an inherent risk that you will lose some of your interest, but it is not possible to lose the principal you have invested whether you sell or not.

Vanguard brokered CDs may be callable or noncallable. Callable means that the issuing bank has the option to call or terminate your certificate before it matures and return the principal and interest to you. Issuers often choose to do this when interest rates drop as they can save money when paying you your interest. Some callable CDs can only be called for a certain period of time and others are eligible to be called at any time before maturity. If you choose a callable brokered CD, note the callable date and understand that your account may be closed.

When your certificate reaches maturity, the principal and interest is transferred into your settlement fund and you may withdraw the funds as cash. Brokered CDs do not automatically renew at maturity as traditional CDs do.

Primary and Secondary Market

Vanguard allows you to purchase both primary market and secondary market CDs.

  • Buying CDs in the primary market means your broker (Vanguard) is transacting with the issuer of the security directly (i.e. the underlying bank). There are no fees for buying new issue CDs.
  • Buying (or selling) CDs on the secondary market means you’re transacting with other market participants. Vanguard charges a commission for secondary market trades. See fee specifics below.

📌 Important: Vanguard themselves do not make a market in brokered CDs. If you would like to sell your CD early a Vanguard broker may provide access to a secondary market managed by another broker.

Terms and Fees

Purchasing new issue CDs are completely free of charge.

As mentioned, when purchasing CDs on the secondary market, Vanguard charges a $1 transaction fee for every $1,000 you invest but no more than $250 in total.

If you place a secondary trade over the phone, you will pay a $25 fee for a broker to help you complete the trade.

The fees are waived for secondary trades if you hold more than $1 million across all of your Vanguard assets including fixed income investment products, mutual funds and index funds, and ETFs.

Vanguard CDs are federally insured up to $250,000 per depositor. All banks issuing new brokered CDs are also FDIC insured so that you are fully covered with each bank you have purchased a CD from.

If you decide to sell your brokered CD before it matures, you can do so through your Vanguard brokerage account.

Each bank imposes its own minimums and maximums. Some, for example, may require you to invest at least $10,000, not $1,000. Vanguard will help show you your options, but it is your responsibility to make sure you understand the terms for each of your CDs. Vanguard plays no role in deciding whether you qualify for an account.

Note that these brokered CDs do not automatically renew at maturity. Instead, the principal and interest you’ve earned is transferred to your linked Vanguard money market account.

How to Open

There are two different ways you can purchase a CD through Vanguard.

The first is to buy a new issue CD.

You must invest at least $1,000 to get started and can increase your investment in increments of $1,000. New certificates are issued directly from banks through Vanguard, so you earn the interest rate set by the bank.

The second is to purchase a secondary issue CD.

This is where you buy an existing CD from someone looking to sell theirs that has not yet matured. This is done on a secondary market through Vanguard brokerage. Vanguard charges a commission for these trades equal to $1 for every $1,000 you invest and will help you choose from available CDs and initiate the trade.

You pay commission fees when your certificate matures, not when you make your investment. If you choose to purchase various secondary market CDs with Vanguard at a time, you will pay commission for each.

You are not permitted to invest more money into your account after you have made an initial deposit. CDs can be opened online or over the phone (additional fees may apply for phone trading).

How to Earn Interest

Vanguard CDs pay simple interest at maturity into your linked Vanguard money market fund. This is another key difference between brokered and non-brokered CDs, as non-brokered CDs compound interest and credit it monthly or quarterly back into the certificate, onto the principal, until it reaches maturity (at which point you can withdraw the funds).

Remember, for Vanguard’s brokered CDs, yields are calculated as simple interest, not compounded.

Vanguard CD FAQs

Still have questions regarding Vanguard’s brokered CDs (certificates of deposit)? See what other consumers are asking as well as our responses below.

Are Vanguard’s CDs FDIC Insured?

Yes. Vanguard only brokers CDs from FDIC-insured banks. This means consumers have $250,000 in FDIC coverage per institution.

Are Vanguard’s CDs available in all 50 states?

All of Vanguard’s CDs may not be available in each state. Due to Blue Sky Laws, if the underlying bank offering the CD hasn’t registered with that particular state’s banking commission then consumers from that state may not purchase it through Vanguard.

Why are Vanguard’s CD Rates Higher than Regular Bank CD Rates?

Vanguard’s CD rates are higher than the CD rates you’d see at traditional, brick and mortar banks and even most online banks because Vanguard buys the CDs in bulk from the underlying institution. This gives them leverage to secure better yields that they can then resell to their clients.

Does Vanguard Offer a Money Market Account?

Vanguard does not broker any traditional FDIC-insured money market accounts like they do with CDs. They do, however, offer a variety of Money Market Funds that are not FDIC-insured but are made up of fixed income mutual funds that only invest in highly liquid, short-term debt. The average 7 day yield for the Vanguard Federal Money Market Fund sits at 5.28% per the time of this writing.

Are Bonds and Brokered CDs the Same?

Vanguard places brokered CDs and bonds in the same category and offers a variety of government-issued securities, but bonds and brokered CDs are not the same product. Both are fixed-income securities, but brokered CDs are issued by banks and credit unions while bonds are often issued (and insured) by the government.

Still, if you’re interested in both, you can choose from U.S. government agency securities and corporate bonds, U.S. Treasury securities, municipal bonds, mortgage-backed securities, and unit investment trusts.

Edward Jones CD Rates – Now up to 5.35% APY!

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Fact Checked :
Updated

Edward Jones is a brokerage firm you’ve likely heard of over the years as it passes a century in age.

Founded in 1922, Edward Jones now has over 8 million clients with a combined $1.5 trillion in assets managed by over 19,000 financial advisors as of Q3 of last year.

Edward Jones also offers consumers a number of competitive brokered CD (certificate of deposit) accounts with competitive yields on terms ranging from 3 months to 10 years.

Because Edward Jones is a brokerage firm and not an actual bank they don’t issue their own CDs. Instead, they ‘broker’ or re-sell a range of deposits issued by banking institutions that they’ve partnered with which provide FDIC coverage. We go into more detail on brokered CDs further below.

Edward Jones CD Rates + Account Details

image credit: edwardjones.com

All Edward Jones CDs require a minimum deposit of $1,000 to open. Please note that 7 and 10 year CDs are not available at this time.

CD Rates

CD TermAPY
3 months5.20%
6 months5.25%
9 months5.30%
1 year5.35%
18 months5.20%
2 years5.10%
30 monthsNA
3 years4.85%
4 years4.70%
5 years4.55%
7 yearsNA
10 yearsNA
APY = Annual Percentage Yield

The rates above were surveyed on August 29, 2023. These yields and terms may not be available in all states.

To give these offers some context, the current national average for a 12 month CD and a 60 month CD sit at 1.76% APY and 1.41% APY, respectively, according to recent FDIC data.

How Much Can You Make with an Edward Jones CD?

The amount of money you can earn with an Edward Jones CD is going to depend on your deposit size, the term you select and its APY (annual percentage yield). Take a look at the table below to get an idea of how much you’d earn with a handful of Edward Jones CDs assuming a deposit size of $100,000.

CD TermAPYEarnings
6 months5.25%$2,591.42
12 months5.35%$5,350.00
2 years5.10%$10,460.10
5 years4.55%$24,916.61
Earnings = The sum of all interest payments through maturity.

How do Edward Jones CD Rates Compare?

If you’re wondering how Edward Jones CD rates compare with other brokered CD rates, take a look at the table below. We’ve pitted Edward Jones against other well known brokerages and their best CD rates.

BrokerageCD TermAPY
Edward Jones1 year5.35%
Charles Schwab10-18 months5.65%
Morgan Stanley6 months5.37%
Fidelity12 months5.40%
Vanguard13-18 months5.75%
CD rates surveyed August 29, 2023.

Edward Jones Brokered CDs Account Details

A few crucial distinctions must be made between standard CDs and Edward Jones’s brokered CDs.

The most important of these being that you do not open or manage brokered CDs yourself. On top of that, the actual CD isn’t technically a product of Edward Jones at all. Instead Edward Jones purchases CDs in bulk from a number of different financial institutions and then resells them (or brokers them) to their clients.

You can open new CDs with Edward Jones or you can purchase secondary CDs.

If you open a new CD with Edward Jones you will not have to pay any commission fees. Edward Jones will receive a concession from the bank that takes your deposit, but this is already factored into the price.

If purchasing a CD on the secondary market, you will have to pay Edward Jones a commission just like you would purchasing stock. You can see what commission they take in the trade confirmation.

A benefit of Edward Jones brokered CDs is that they don’t have early withdrawal penalties. If you need to cash out of your deposit early you can simply sell it to another investor on the secondary market.

Unfortunately, this also means there is an inherent downside to these products in that their price fluctuates on the open market and can feasibly be sold for less than the purchase price.

For example, if you open a 5 year deposit and need the funds after year 2, during which time interest rates have risen considerably, you may have a tough time selling your deposit for your full purchase price.

Conversely, if you purchase a 5 year deposit and rates drop significantly (which they have) then you may find investors willing to offer a premium on your CD on the secondary market.

Also note, interest earned on Edward Jones CDs does not compound. This is true of most brokered CDs as they require an immediate distribution of interest. The terms of your personal CD will tell you how often the interest on your account is credited and where.

Brokered CDs with Edward Jones do not automatically renew.

How to Purchase a CD Through Edward Jones

To open a brokered CD with Edward Jones, you’ll first need to set up a brokerage account with them if you don’t have one already. Edward Jones is a full service brokerage account with no minimum deposit requirements for account opening.

Opening up an Edward Jones brokerage account can be done online, however purchasing an Edward Jones brokered CD can not. For this you will have to go to a local office and fill out the paperwork. They will provide you with a prospectus to look over and discuss your options with you before you make any decisions.

As soon as your initial deposit clears, you are free to buy a new CD or a secondary CD through your Edward Jones broker.

Additional Deposit Accounts Offered Through Edward Jones

Edward Jones is a member of SIPC and deposit products with this firm are insured up to $250,000 per depositor.

In addition to its extensive suite of investment products and brokered CDs, this firm also offers money market funds and a cash management account.

Edward Jones Money Market Funds

Money market funds offered at Edward Jones, and most other brokerage firms, are not money market accounts. Money market funds are simply liquid mutual funds with good cash access. Money market accounts are federally insured deposit accounts with a guaranteed return of principal plus accrued interest.

Because money market funds are mutual funds with cash access, they do not guarantee that you will receive a full return on your principal.

On top of that, the cash in a money market fund may be used to invest in CDs or other short-term investments, but deposits into these funds are not FDIC insured.

Edward Jones money market funds are available as investment shares and retirement shares – both of these taxable options. You will be charged a $3 monthly maintenance fee for retirement share class money market funds with balances below $1,500 and a $3 monthly maintenance fee for investment share class money market funds with balances below $2,500. Talk with your advisor about cash and cash equivalents available for you to invest in with your money market fund—this will vary. 

There is no minimum investment required to open a money market fund and the current 7-day yield per share is 0.01%.

On the positive side, these money market funds make withdrawing and using money simple because they allow you to write unlimited checks and use a Visa debit card. Transactions and withdrawals are unlimited, unlike money market accounts.

Edward Jones Flex Funds Account (Cash Management Account)

An Edward Jones Flex Funds account is a cash management account that earns interest on your uninvested balance.

There is no annual fee and you can write up to 120 checks per year free of charge. This account is insured up to $1.5 million leveraging multiple banks’ $250,000 FDIC deposit insurance using the “Bank Sweep Program.”

With a Flex Funds account, you can set short-term savings goals for yourself and easily track your progress toward them. Your financial advisor can go through the details about how to strategize saving and investing with this account, but you have a lot of options and flexibility overall with a product like this.

Account Set-Up and Management

Edward Jones allows you to make quick and easy deposits into your account(s) and transfer funds electronically. You can enroll in online bill pay and link a direct deposit to one or more of your savings or investment accounts. Mobile check deposit is another feature included on the Edward Jones native apps for both Google Play and App Store, where they score an impressive 4.8 out of 5 on both platforms.

Final Thoughts

Edward Jones is a more than satisfactory brokerage firm and its brokered certificates of deposit are offering some competitive yields on short-term and mid-range CDs.

Edward Jones CD FAQs

Still have questions about the brokered CDs offered by Edward Jones? See what other consumers are asking around the web along with our responses below.

Why are Edward Jones CD Rates so High?

Edward Jones is able to offer higher CD rates than most banks and credit unions because they purchase CDs in bulk from a number of different institutions. This allows them to secure higher CD rates than they could as an individual purchasing one CD from one institution.

Are Edward Jones CDs FDIC Insured?

Yes. Like most brokerages, Edward Jones only brokers CDs to their clients that are offered from FDIC-insured financial institutions. All CDs purchased and held through an Edward Jones brokerage account are federally insured up to the applicable limits.

Are There Early Withdrawal Penalties for Edward Jones CDs?

No. As with most brokered CDs, if you need access to your funds early you can simply sell your CD on the secondary market. An Edward Jones broker can assist you in this process.

Does Edward Jones Offer Jumbo CDs?

Edward Jones does not offer higher CD rates for larger deposit amounts (aka Jumbo CDs). The CD rates you see listed above apply to deposits of all sizes.

Does Edward Jones Offer Money Market Accounts?

No. Edward Jones does not offer any FDIC-insured money market accounts. They do offer a Money Market Fund, but it’s possible to lose money investing in the fund despite the fund’s goal of preserving the value of your investment. You can learn more here.