Are the rates on Charles Schwab Bank’s Certificate of Deposit (CD) account able to compete with the rates of the best banks in the USA?

Certificate of Deposit (CD)

Want to invest but don’t want to face the risks associated with the stock market?  A great alternative alongside a savings account and money market account is a certificate of deposit (CD).  A CD is different from the latter two in that it is a loan given to the bank for a specific period of time, in which the banks pays it back to you with interest on the specified date. CDs are also generally offer higher interest rates than money market or savings accounts, and thus are a great investment alternative.  CDs at Charles Schwab Bank come in eight different time periods: 3, 6, 12, and 18 months, and 2, 3, 4 and 5 years.  The minimum opening deposit for a CD at Charles Schwab Bank is $1,000, with the current interest rate ranging from 0.10% for 3 months to 1.49% for 5 years.  The interest rate on the CD is compounded daily and paid monthly to the account.

As far as features, CDs are automatically renewed at maturity.  However, there is a ten day grace period in which you can make any deposits, withdrawals, or term changes to the account.  Like any other CD, there are early withdrawal penalties on both the interest and the principal.  The penalty for interest is an amount equal to 90 days, while the principle penalty is calculated on the amount that is withdrawn.

How to Apply for a CD at Schwab

There are two different ways to apply for a CD at Charles Schwab Bank.  The first way is by telephone, in which you can call a customer service representative at 1-888-303-0310.  The call is toll free and the representatives are available every day of the week generally from 8:30 a.m. to 11:00 p.m.  The other way is to physically visit the mail retail office of Charles Schwab Bank in Reno, Nevada (there are no national branches).  If you are interested in the exact address it is located on their website. Refer to the Charles Scwab Bank Review for more information.