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Savings & Income
Best Brokered CD Rates vs Bank CD Rates
On September 29, 2026, the best brokered CD rates were 4.60% for 1 year at Schwab and Vanguard and 5.05% for 2 years at Vanguard, with $0 fees on new issues. Bank CDs paid less: Ally 4.15% and Marcus 3.90% for 12 months. Fidelity sells fractional CDs from $100.
Where To Buy a CD Right Now
Brokered CDs from the big brokerages paid more than bank CDs at every term checked on September 29, 2026. Rates change daily, so confirm before you buy.
Highest 2-year rate
Vanguard
5.05% for 2 years, 4.60% for 1 year and 5.25% for 5 years on new-issue brokered CDs, with $0 fees.
See in comparison table ↑
Top 1-year rate
Charles Schwab
Up to 4.60% for 1 year and 5.00% for 2 years, $0 on new issues, from $1,000.
Schwab review →
Investing less than $1,000
Fidelity
Fractional CDs from $100 (1-year at 4.35%), plus whole CDs up to 5.25% for 5 years.
See in comparison table ↑
A bank CD with no minimum
Ally Bank
4.15% for 12 months and 4.25% for 18 months, no minimum deposit, and a 60-day interest penalty on terms up to 2 years.
See in comparison table ↑
Longer bank CDs
Marcus by Goldman Sachs
4.35% on every term from 18 months to 6 years, with a $500 minimum.
See in comparison table ↑
Secondary-market CDs
Interactive Brokers
8,015 CDs on the secondary market, at 0.1% of face on the first $10,000, on both IBKR Lite and Pro.
Interactive Brokers review →Brokered CDs vs Bank CDs
| Brokered CD | Bank CD | |
|---|---|---|
| Where you buy it | A brokerage account, from many different banks | Directly from one bank |
| Top 1-year rate checked | 4.60% (Schwab, Vanguard) | 4.15% (Ally) |
| Minimum | Usually $1,000; $100 for Fidelity’s fractional CDs | $0 at Ally and Capital One; $500 at Marcus |
| Getting out early | Sell on the secondary market at the current price, which may be less than you paid | Pay a fixed penalty, such as 60 days’ interest at Ally |
| Fees | $0 on new issues; about $1 per CD on secondary trades | None to open |
| FDIC insurance | Yes, through the issuing bank, up to $250,000 per depositor, per bank, per ownership category | Yes, same limits |
Rates and fees from each firm’s official pages, checked September 29, 2026. Buying CDs from several banks in one brokerage account can extend FDIC coverage, since the limit applies per bank.
Estimate what a CD earns
| CD | APY | Interest earned | Value at maturity |
|---|
Assumes the stated APY for the whole term, with interest compounding. Many brokered CDs pay interest out instead, so your total can be slightly lower. Rates checked September 29, 2026.
Four Things That Change What a CD Pays You
Term
Longer isn’t always higher
Marcus paid 3.90% for 12 months but 4.30% for 9 months, and Capital One’s 11-month special beat its 12-month rate.
Early exit
Penalties and resale prices
Bank CDs charge a fixed interest penalty. Brokered CDs are sold at market value, which falls if rates have risen.
Call features
Callable CDs
Some brokered CDs let the bank end them early, usually when rates fall. Check the call schedule before you buy.
Size
Minimums and fractions
Most brokered CDs sell in $1,000 units. Fidelity’s fractional CDs start at $100 but paid less than its whole CDs.
What To Check Before You Buy
- New issue or secondary. New issues cost $0 at most brokers; secondary CDs usually cost about $1 per CD and trade at a premium or discount.
- Whether it’s callable. A callable CD’s high rate may not last the full term.
- The early-exit cost. Compare the bank’s penalty, or remember a brokered CD’s price can fall.
- FDIC coverage across banks. Keep each bank’s total, including any accounts you already hold there, within $250,000 per ownership category.
- How interest is paid. Many brokered CDs pay interest to your cash balance instead of compounding it.
- How the rate compares with Treasuries. Treasury interest is exempt from state income tax, so compare after tax.
How To Build a CD Ladder
- Decide how much you won’t need soon. Keep emergency cash in a savings or money market account instead.
- Split it into equal parts. For example, five parts for a five-year ladder.
- Buy staggered terms. Put one part each into 1-, 2-, 3-, 4- and 5-year CDs.
- Reinvest as each CD matures. Roll each maturing CD into a new 5-year CD to keep the ladder going.
- Use a ladder tool. Fidelity, Schwab and E*TRADE each offer one for CDs and Treasuries.
- Review when rates move. Compare new CD rates with Treasuries and savings accounts before each rollover.
How We Compared
Rates, minimums, fees and penalties come from each firm’s official CD and pricing pages, checked September 29, 2026 and summarized in the comparison table. Brokered CD rates are the highest new-issue yield shown for each term; Schwab’s page doesn’t date its rates. TD Ameritrade is now part of Schwab, and Discover’s CD page redirects to Capital One, so neither has its own row. Firms marked “Special Offer” are AInvest partners, and AInvest may be compensated when you open an account through this page. Rates change often; confirm the current rate before you buy.
FAQ & Glossary
What are the best brokered CD rates today?
On September 29, 2026, the top new-issue brokered CD rates were 4.60% for 1 year at Schwab and Vanguard, 5.05% for 2 years at Vanguard, and 5.25% for 5 years at Fidelity and Vanguard, all with $0 fees on new issues. Rates change daily, so check the broker before buying.
What is a fractional CD?
A fractional CD lets you buy part of a brokered CD instead of the usual $1,000 unit. Fidelity offers Fractional CDs in minimums and increments of $100; on September 29, 2026 its 1-year fractional CD paid 4.35%, against 4.55% for its top whole 1-year CD. Schwab and Vanguard sell CDs in $1,000 units.
How do you buy CDs at Interactive Brokers?
Interactive Brokers offers brokered US CDs on the secondary market only, found through its Bond Scanner. The commission is 0.1% of face value on the first $10,000 (minimum $1) and 0.025% above, capped at the smaller of $250 or 1% of trade value. CDs are available on both IBKR Lite and Pro.
How many CD ladder rungs do I need?
3–5 rungs usually work well. Align each maturity with a real cash need (emergency, home project, college, retirement milestone).
When should I avoid long-term CDs?
Avoid them if you might need the money sooner than the term, or if you expect rising rates soon and want flexibility.
What is CD (Certificate of Deposit)?
A savings product where you lock your money for a fixed term and earn a guaranteed interest rate. Early withdrawal incurs a penalty.
What is Early Withdrawal Penalty?
The fee you pay if you withdraw from a CD before the maturity date, typically calculated as forfeited interest.
What is Callable CD?
A CD where the issuer (usually a bank) can force early redemption if interest rates fall, locking you out of earning higher rates.
What is CD Ladder?
A strategy where you divide your money into multiple CDs with different maturity dates, so portions mature regularly for reinvestment.
What is Yield Curve?
A graph showing how interest rates increase (or decrease) as the loan term gets longer. Affects which CD terms offer the best value.
What is Compounding?
Interest is added to your principal, and you earn interest on that interest. More frequent compounding (daily vs. annual) means higher returns.