Morgan Stanley is a renowned global financial services firm that operates as an investment bank, wealth management provider, and asset management company.
And as of this Spring, Morgan Stanley has begun offering FDIC-insured CDs (certificates of deposit) with terms ranging from 3 to 11 months that come with competitive yields.
The CDs are issued and held by either Morgan Stanley Private Bank or Morgan Stanley Bank. FDIC coverage caps out at $250,000 but Morgan Stanley still allows clients to deposit up to $10 million into these CDs across the two banks ($5m per issuer).
To see if Morgan Stanley’s CDs are right for you, continue reading below.
Morgan Stanley CD Rates + Account Details
The 3 promotional CDs issued by Morgan Stanley come with a minimum deposit requirement of $1,000 and deposits must be made in increments of $1,000 (i.e. you can not deposit $1,500 you must deposit either $1,000 or $2,000). To obtain the advertised rate and APY (annual percentage yield) CDs must be funded with new money not currently held within an existing Morgan Stanley account. New money is considered any deposit into a Morgan Stanley account within the last 30 days. You can learn more here.
CD Rates
*Available until December 26th, 2023 subject to availability
| CD Term | APY |
| 3 months | 5.25% |
| 6 months | 5.32% |
| 11 months | 5.31% |
To put the yields above into perspective, the current national average for a 6 and 12 month CD sit at just 1.34% APY and 1.76% APY, respectively, according to FDIC data. However, top yields from FDIC-insured online banks are now rising above the 5.25% APY mark for the same terms with these CD rates by Morgan Stanley being among the rate leaders.
What Happens When the CD Matures
Upon the maturity of your Morgan Stanley CD, all funds will be automatically deposited into their Preferred Savings Program. This account provides easy and convenient access to funds plus comes with a competitive variable rate which sits at 5.00% APY per the time of this writing.
How Much Can You Make with a Morgan Stanley CD?
How much money you can earn from a CD with Morgan Stanley is going to depend on the CD’s term, its APY and your deposit size. Take a look at the table below that shows how much you’d earn with Morgan Stanley’s CDs assuming a deposit size of $100,000.
| CD Term | APY | Earnings |
| 3 months | 5.25% | $1,287.42 |
| 6 months | 5.32% | $2,625.53 |
| 11 months | 5.31% | $4,856.93 |
How do Morgan Stanley’s CD Rates Compare?
Take a look at the table below. It compares Morgan Stanley’s best CD rates with the top CD rates offered by other major banks and credit unions with nationwide acceptance.
| Bank or Credit Union | Best CD Rate (APY) |
| Ally Bank | 5.00% |
| Apple Bank | 4.50% |
| Bank of America | 4.75% |
| Capital One | 5.15% |
| Navy Federal Credit Union | 4.85% |
| BECU | 4.07% |
| Morgan Stanley | 5.32% |
To compare Morgan Stanley’s CD rates with brokered CDs offered by well known brokerage firms, take a look at the table below.
The brokered CDs listed below come with FDIC insurance via the underlying bank or credit union that has partnered with the brokerage firm.
| Brokerage | Best CD Rate (APY) |
| Charles Schwab | 5.60% |
| Edward Jones | 5.30% |
| Fidelity | 5.35% |
| Vanguard | 5.60% |
| Morgan Stanley | 5.32% |
Final Thoughts
If you’re looking for a high yield, short term CD with FDIC-insurance then the CDs offered by Morgan Stanley could be a good fit. Especially if you are already a client of Morgan Stanley and were looking to deposit more funds into an account.
Just remember, the CD yields only apply to funds deposited to a Morgan Stanley account within the last 30 days and are subject to availability through December 26th, 2023.
