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Review of Edward Jones CD Rates

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.

What are brokered CDs?

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:

  • No early withdrawal penalties: Brokered CDs don’t have early withdrawal penalties. If you need to get out of your CD, you can usually sell it back to another investor through a brokerage firm. This means that brokered CDs carry some additional risk, as the price of these CDs may fluctuate on the open market.
  • Higher APYs: You can often get higher yields on a brokered CD than with a bank-issued CD. Brokers are able to negotiate higher CD rates since they can guarantee a large pool of buyers to CD issuers. In the era of online banking, however, even brokered CDs do not always garner the absolute highest rates.
  • Longer-term options: Brokered CDs often have longer-term options than are available with traditional bank-issued CDs, which are generally short-term investments only.

CD rates from Edward Jones

Edward Jones offers a fairly comprehensive range of CD maturities, ranging from three months to 10 years, although the firm doesn’t offer 6-year CDs, 8-year CDs or 9-year CDs. Rates and availability change frequently, oftentimes daily. The longer-duration CDs offered by the firm aren’t traditionally available at banks.
Edward Jones CD Rates
TermMinimum deposit to earn APYAPY
3 months$1,0001.95%
6 months$1,0002.00%
9 months$1,0002.00%
1 year$1,0001.95%
18 months$1,0001.90%
2 years$1,0002.05%
3 years$1,0002.15%
5 years$1,0002.20%
7 years$1,0002.45%
10 years$1,0002.60%

For all maturities, Edward Jones requires a $1,000 opening deposit, which is the same minimum required to earn the stated APY. As these are brokered CDs, there is no early withdrawal penalty. However, investors are subject to current market prices if they need to get out of a CD prematurely. If interest rates have risen since the date of purchase, you’re likely to get less money back than you originally invested in the CD.

One important difference between Edward Jones CDs and standard bank-issued CDs is that interest does not compound with Edward Jones CDs. All interest is paid directly into a money market or insured bank deposit at Edward Jones, unless you request it to be distributed. Either way, you can’t reinvest your distributions into your existing CD.

Unlike some banks, Edward Jones doesn’t offer any type of hybrid or alternative CD, such as a step-up CD or an adjustable-rate CD. There are also no bonus APR CDs available at the current time, just standard rates. Edward Jones also does not offer special rates for jumbo CDs, which traditionally require a $100,000 deposit. However, you can use the firm’s wide range of CD maturities for certain CD strategies, such as building a CD ladder. You can also buy their brokered CDs in an IRA.

Unlike bank-issued CDs, the brokered CDs offered by Edwards Jones do not automatically roll over into new CDs. At maturity, the banks that issued the CDs pay the proceeds to Edward Jones, which then forwards the money to your account. At that point, you can either select a new brokered CD to purchase, or keep the funds in your Edward Jones money market or insured bank deposit account.

How to get CDs from Edward Jones

You’ll need to open a brokerage account at Edward Jones to buy any CDs. The account minimum to open is $0, but as Edward Jones is a full-service brokerage, you’ll need to go into a branch and visit a financial advisor to open an account. There is no facility to open an account online.

You can open your Edward Jones account as rapidly as you can fill out the paperwork and fund the account. As soon as your deposit clears, you are free to buy a CD through your Edward Jones broker. If you change your mind, you can generally withdraw your funds within 4-6 business days after deposit, although this hold period may extend to 11 business days for new clients. Once you buy a CD, you can sell it at any time on the open market. As noted above, the amount you receive may be less than the amount you originally paid.

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How do CD rates from Edward Jones compare?

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 2.20%.

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.

Overall review of CDs from Edward Jones

You won’t be wasting your time investing in CDs from Edward Jones, as you’ll be earning rates far above the national averages. You’ll also benefit from the ability to construct a CD or overall investment strategy with the assistance of a full-service advisor. However, if you’re looking for the absolute best CD rates for your money, there are plenty of online banks that can pay you a higher rate.

CD investors who like a wide range of products may be disappointed at Edward Jones, as popular options such as step-up or no-penalty CDs are not currently available. However, Edward Jones CDs do benefit from offering brokered CDs. This provides a range of flexibility that standard bank-issued CDs cannot offer, as you can liquidate your CD position at any time without paying an early withdrawal penalty.

The bottom line is that yield-hungry investors that enjoy managing their own portfolios may be better suited at any number of online competitors. Those looking to incorporate decent-yielding CDs into their overall investment portfolio with the help of a full-service broker might prefer working with Edward Jones.

Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.

John Csiszar
John Csiszar |

John Csiszar is a writer at MagnifyMoney. You can email John here

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Reviews

Wealthfront Cash Account Review

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.

Fintech startups are challenging incumbents in every corner of the financial services industry. Robo-advisor Wealthfront is part of this trend, one of many new investing apps that also offer cash management accounts with high APYs and a mix of features offered by traditional bank accounts.

Cash management accounts combine features like easy access to your money and a decent interest rate, typically found separately in checking accounts and savings accounts, respectively.  Wealthfront admits that its Cash Account won’t replace your checking account, instead touting it as a place to stash your emergency savings or achieve other savings goals and enjoy a high 2.57% APY, all with the FDIC protections of a traditional bank account.

Wealthfront Cash Account Pros

Wealthfront Cash Account Cons

  • Offers a high APY compared to other online savings accounts
  • Charges zero fees, $1 minimum balance requirement
  • Deposits are covered by FDIC insurance up to $1 million
  • Ability transfer funds from Cash Account into Wealthfront's taxable investment account.
  • Takes 1-3 business days to access your funds
  • You cannot make payments from the account

Let’s take a closer look at how Wealthfront’s Cash Account compares to both traditional bank savings accounts, and similar cash management offerings from other fintech startups, so you can determine whether it’s right for your savings.

Wealthfront Cash Account vs. online savings accounts

Wealthfront markets its Cash Account as a place to deposit savings you plan on spending in the next five years, or as a good place for an emergency fund. For longer-term returns on your money, Wealthfront advocates investing in the stock market using its core robo-advisor functionality. As an additional incentive to do so, Wealthfront allows you to transfer money from your Cash Account into one of the company’s taxable investment accounts. However, there is nothing in Wealthfront‘s terms of service that would discourage you from treating this account like any other online savings account.

Here’s how Wealthfront’s Cash Account stacks up against the highest-earning online savings accounts from our best online savings accounts review:

Financial InstitutionAPYMinimum balance
Wealthfront

2.57%

$1 minimum, no monthly fee
Vio Bank

2.52%

$100 minimum, no monthly fee
Customers Bank

2.50%

$25,000 minimum, no monthly fee
Barclays

2.20%

None
Marcus by Goldman Sachs

2.15%

$1 minimum, no monthly fee
Ally

2.10%

None

Judged by APY alone, Wealthfront‘s Cash Account emerges as one of the strongest contenders out there, surpassed only by Vio Bank’s online savings account. Like many online savings accounts, there’s a limit to the liquidity of the money placed in Wealthfront‘s Cash Account.

However, there is no option to withdraw funds or make payments from the account via check or ATM card. Your only way to get money into and out of the account is via ACH transfers to and from a separate checking account that’s held in your name. Transfers take one to three business days, and Wealthfront permits an unlimited number of transfers into and out of your Cash Account (with a daily limit of $250,000).

Wealthfront is not a bank, so it has deals with a network of regional banks that are FDIC insured. After you deposit your money in a Cash Account, your funds are swept into multiple accounts with Wealthfront’s bank partners, giving you FDIC insurance coverage up to $1 million (or $2 million if you have a joint Cash Account). This a big advantage that makes the Cash Account an attractive choice for anyone who wants FDIC coverage beyond the $250,000 limit available with a single online savings account.

Wealthfront Cash Account vs. robo-advisor cash management accounts

Many other robo-advisor firms offer cash management accounts. These accounts take varying forms: Some resemble a personal savings account, others have both savings and checking account features, while some are a type of investment account. Below we compare the Wealthfront Cash Account with cash management offerings from robo-advisors Betterment and SoFi.

Account nameFunctionFeesYield
Wealthfront Cash Account

FDIC-insured savings account

None

2.57% APY

Betterment Smart Saver

Low-risk bond investments

0.25% annual fee

2.14% APY

SoFi Money

FDIC-insured checking/savings hybrid account

None

An average of 2.25% APY

Wealthfront Cash Account vs. Betterment Smart Saver

Betterment‘s Smart Saver account is a low-risk investment account, not a deposit account, so it plays by a different set of rules than Wealthfront‘s Cash Account. For one, as an investment it does not have FDIC coverage. Betterment‘s website claims you could earn returns of 2.14% (which factors in the standard 0.25% Betterment charges for its services) — notice the word “could.” Money placed in the Smart Saver account is invested in a mix of treasuries and corporate bonds—fairly safe investment vehicles—but it still can’t guarantee the 2.14% return in the same way a deposit account can guarantee an APY.

The Smart Saver account does have some bells and whistles that may make it an appealing choice for your savings. These include:

  • Smart Sweep: This feature aims to maximize your investing returns by only maintaining as much cash in your linked checking account as you need for day-to-day spending. It works like this: After giving  access to your checking account, the app analyses how you spend money. Then it sweeps money above and beyond what you need to pay 35 days of expenses — up to $5,000 per sweep — into the Smart Saver investment account. Likewise, if the app thinks you’ll need more money to cover your expenses, it will sweep money from the Smart Saver investment account into your checking account. You can read more details here.
  • Tax relief: While you can’t avoid paying taxes entirely, the fact that 80% of the money placed in the Smart Saver investment account will be invested in U.S. Treasury bonds means that some of the earnings from the Smart Saver account won’t be subject to state and local taxes. You can read more details here.

Like Wealthfront’s account, there is an inconvenient waiting period to withdraw money from the account — four to five business days, which is longer than Wealthfront‘s one to three business days. This longer period accounts for the fact that your money is invested in bonds, making it less liquid than funds placed with Wealthfront in FDIC-insured deposit accounts.

Wealthfront Cash Account vs. SoFi Money

SoFi Money is a checking and savings hybrid account, meaning you earn both a high yield — 2.25% APY vs. Wealthfront‘s 2.57% APY — and enjoy instant access to your money with a debit card and paper checks.

Similarly to Wealthfront, SoFi Money spreads any funds you deposit across multiple FDIC-insured bank accounts — six in this case — providing up to $1.5 million in FDIC insurance vs. Wealthfront‘s $1 million.

SoFi Money may lag behind Wealthfront in terms of APY, but it makes up for this by providing the utility of both a savings and checking account. You can use your debit card to make purchases and withdraw money from ATMs (there is a daily limit of $610) just like you would with any other checking account. You can read more details on SoFi Money in our review.

Who should get a Wealthfront Cash Account?

If you’re looking for an FDIC insured account that provides one of the highest APY’s available, than the Wealthfront Cash Account may be right for you. However, you won’t have easy access to your funds like you would with a hybrid checking/savings account, such as SoFi Money. However the simplicity of the account, and the promise of additional features in the future such as a debit card and ATM withdrawals, could make it a compelling option for your savings.

Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.

James Ellis
James Ellis |

James Ellis is a writer at MagnifyMoney. You can email James here

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Reviews

Acorns Spend Review

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.

Acorns Spend is the third product offered by popular micro-investing tool Acorns. Spend is a checking account integrated with the firm’s two existing products, Acorns Core and Acorns Later. Combined, the three products are designed to get people saving and investing on an automatic basis.

Acorns Spend has all the features of a traditional checking account, including a debit card and ATM access. The Acorns twist is that purchases made using the account are rounded up to the nearest dollar, with the excess money being invested in six different exchange-traded funds, or ETFs.

When you pay the $3 monthly fee for Acorns Spend, you’re automatically enrolled in Acorns Core and Acorns Later, although you’re not required to fund or use these products.

If you’re curious about Acorns Spend, we’ll take a look at the features and benefits of the account, along with its associated fees and drawbacks to see if its a good fit for you.

Account features

No minimum balance or overdraft fees. You don’t have to fund an Acorns Spend account to open it, and you don’t have to worry about ever overdrawing the account.

Includes Acorns Core and Acorns Laterfor no additional fee. Although some online checking accounts don’t charge a monthly fee at all, the Acorns Spend account is part of a financial universe that rounds up your money and invests it for you; the $3 monthly fee also includes IRA services through the Acorns Later program.

Unlimited free or reimbursed ATM withdrawals nationwide. With out-of-network ATM fees often topping $2.50, unlimited fee reimbursements alone may make the $3 monthly charge for Acorns Spend a bargain.

A host of mobile banking services. The account includes free bank-to-bank transfers, digital direct deposit, mobile check deposit, and check sending.

Found Money rewards program. When you shop with specific merchants, they will credit your Acorns account with rewards cash within 90 to 120 days after your purchase.

Integrated with the Acorns ecosystem. Acorns Core already has over 3 million customers, meaning its being used by lots of people. Acorns Spend is an easy add-on service for those already familiar with how Acorns works.

Money invested according to Modern Portfolio Theory.Your spare change is invested in one of five ETF-based portfolios that Acorns has developed in line with Modern Portfolio Theory, which aims to generate the highest possible returns with the lowest possible risk.

Fees and fine print

Acorns is pretty transparent when it comes to its fees and pricing structure. With no overdraft, ATM or minimum balance fees, your monthly service charge is the only fee you’ll have to worry about. This account is the most expensive product available from Acorns, but the fee remains modest.

Pricing

The original Acorns product, now named Acorns Core, charges $1 per month. If you add on the IRA services of Acorns Later, that fee jumps to $2. Acorns Spend, which includes all three products, is $3 per month.

There are a few small twists in the pricing structure. Students do not have to pay the $1 fee for using Acorns Core, so they can access the complete Acorns Core + Acorns Later + Acorns Spend package for just $2. If you’re a millionaire, the fee structure jumps quite a bit, with Acorns charging $100 per million invested.

Other fees and fine print

Although fees for this account are low, they are flat; this means that customers with lower balances can see a significant percentage of their balances eaten away by the monthly fee. For example, if you have just $100 invested via Acorns Spend, the $3 monthly fee amounts to 3% of your balance every month.

ATM fees$0, with unlimited nationwide reimbursements of any non-preferred ATM fees
Withdrawal limits$500 per day
Overdraft fees$0
Card replacement fee$0

Pros and cons

The main pro of the Acorns Spend account is that it “forces” you to save and invest. Like the Acorns Core account, your purchases using the Spend debit card are rounded up and placed into an investment portfolio matching your investment objectives and risk tolerance. The idea behind Acorns Spend – and indeed, the entire Acorns investment philosophy – is that while you’re not likely to miss the additional $0.23 you’ll be charged on your $3.77 cup of coffee, over time, those $0.23 deposits add up.

Another prime benefit of Acorns Spend is its low cost. Yes, there’s a $3 monthly fee, but you are getting a lot for that cost. While some checking accounts charge fees just to provide basic services, the account automatically invests your money for you; not only that, but Acorns Spend invests your money for you in small increments. When was the last time you called your broker and asked him to buy $0.23 of an ETF? At most firms, that’s not even possible, and if it is, commissions will likely eat a large portion of your investment.

The unlimited domestic ATM fee reimbursement is another significant feature of the Acorns Spend account. Although some firms, such as Charles Schwab, offer unlimited international ATM fee reimbursements, many banks charge their own additional fees for out-of-network ATM transactions, on top of the fees that are imposed by ATM operators themselves.

There aren’t a lot of obvious “cons” to this account; ironically, the same features that are “pros” for many customers can end up being “cons” for others.

For example, some customers may not enjoy the “forced savings” method that Acorns employs; these customers may prefer to choose their own investments and may not like the portfolios that Acorns creates for customers. After all, Acorns only has five investment options, and they are categorized generically as “Conservative,” “Moderately Conservative,” “Moderate,” “Moderately Aggressive,” and “Aggressive” — and all five portfolios use the same six ETFs, in varying measure.

Another “pro” that may end up being a “con” for some customers is the $3 monthly fee. For those integrated into the Acorns ecosystem, paying this fee makes sense. For those that aren’t interested in the Acorns investment philosophy, or for those who don’t make a lot of reimbursable ATM transactions, the $3 fee could outweigh the benefits, especially when considering that plenty of online banks, from Discover to Capital One, offer no-fee checking accounts.

Overall, this account is a bit different than some of its major competitors, such as the PayPal Prepaid Mastercard® and the Venmo debit card.

The Acorns Spend account is primarily focused on saving and investing, with round-ups automatically finding their way to predetermined investment portfolios. The Venmo and PayPal cards, on the other hand, are primarily focused on money transfer/access to and from Venmo and PayPal accounts, respectively, although they also operate as debit cards for purchases.

The Acorns Spend account has another advantage over these cards in that it is a fully functioning checking account, rather than just a money transfer or investment portal.

However, things are changing a bit in the competitive landscape, and PayPal and Acorns have recently formed a financial partnership. Now, you can use your PayPal account to open an Acorns account and begin funding your investments, starting with as little as $5.

How to open an Acorns Spend account

Log in to your existing Acorns account. The fastest way to sign up for Acorns Spend is if you are already an Acorns customer. If you log in to your account, you can pre-order the Acorns Spend debit card in a few clicks. The first 100,000 Acorns Spend debit cards sold out in four days, but the company is still accepting pre-orders for additional cards as of February 8, 2019.
Open an Acorns account online. If you’re not already a customer, you’ll have to sign up for an Acorns account to access Acorns Spend. You can access the application at this link. Once there, click “Don’t Have an Account?” You’ll need to provide your email address and create a password to open an account.

To finish opening your account, you’ll need to connect your spending cards, such as your debit and credit cards, so that Acorns can set up the “round-up” portion of the process. Next, you’ll provide personal information, such as your address and Social Security number. The last step of the process is to choose your investment allocation.

Overall review of Acorns Spend

Acorns Spend was a smart idea for Acorns itself because it’s something of a no-brainer for its existing three million-plus strong customer base. For those that already have Acorns Core and Acorns Later, Acorns Spend is just an additional $1 per month, and it provides access to a feature-packed checking account. For existing customers, Acorns Spend is another easy way to keep rounding up purchases into an investment account.

For potentially new customers, whether or not to switch from an existing checking account to Acorns Spend is an open question. On the plus side, Acorns Spend combines the key benefits of the best online checking accounts, such as mobile check deposit and no minimum deposit requirements, to the low fee structure most customers want, with no ATM fees, overdraft fees or card replacement fees.

One of the few outright negatives of the Acorns Spend account is the $3 monthly fee; although it’s lower than what many traditional, national banks charge, it’s $36 more per year than the $0 charged by many online banks.

For many customers, the unlimited ATM fee rebates will more than compensate for the monthly fee. However, for customers that have limited a need for out-of-network ATM withdrawals, or for those that aren’t interested in the Acorns ecosystem, this may not be the right product for them.

Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.

John Csiszar
John Csiszar |

John Csiszar is a writer at MagnifyMoney. You can email John here