APY |
Account Type |
Account Name |
Compare Rates from Similar Accounts |
||
---|---|---|---|---|---|
1.95% |
CD Rates |
Edward Jones 1 Year CD |
2.50% |
Goldman Sachs Bank USA High-yield 12 Month CD |
on Goldman Sachs Bank USA’s secure website Member FDIC |
2.30% |
CD Rates |
Edward Jones 5 Year CD |
2.80% |
Goldman Sachs Bank USA High-yield 5 Year CD |
on Goldman Sachs Bank USA’s secure website Member FDIC |
Edward Jones offers brokered CDs, which are a bit different from the standard bank-issued CDs that most investors are familiar with. Bank-issued CDs, as the name implies, are issued by individual banks for their customers. Since Edward Jones is a broker and not a bank, it cannot issue its own CDs. Instead, the firm offers a range of CDs issued by other banks and thrifts but sold via Edward Jones.
For the casual investor, it can be hard at first glance to tell the difference between bank-issued and brokered CDs. However, there are some important distinctions:
Edward Jones CD rates are well above the national average, but they still fall considerably short when compared with the best available rates nationwide.
Unlike with many firms, Edward Jones doesn’t currently have any special-rate CDs, where certain maturities pay dramatically higher rates. Instead, rates at Edward Jones land along a traditional curve, gradually increasing in yield as maturities lengthen.
For example, as of July 3, 2019, the Edward Jones 2-year CD rate of 2.05% is far below the best available 2-year CD rates. Three-year CD rates top out nationally at 3.00%, but Edward Jones pays 2.15%. The pattern continues throughout the maturity curve, with the top 5-year CD rates nationally hitting 3.00% or more, while the 5-year at Edward Jones pays 2.30%.
As such, all rates at Edward Jones fall in the general area of being well-above national averages but still notably short of the best available rates.
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Source: https://www.magnifymoney.com/blog/reviews/edward-jones-cd-rates/