E*TRADE CD rates explained: Finding the best returns for your money
Founded in 1982 and acquired by Morgan Stanley in 2020, E*TRADE is a popular online trading platform. While most people associate E*TRADE with stocks, bonds, and mutual funds, it also offers a variety of certificates of deposit (CDs) with attractive rates.
By adding CDs to your portfolio, you can diversify your investments and shield against the market’s regular ebbs and flows. Below, we’ll dive deeper into the current displayname CDs available as of June 2026, as well as how to open and manage your account.
What are E*TRADE certificates of deposit?
E*TRADE CDs are low-risk, FDIC-insured investments with 6-month to 60-month terms and competitive, fixed interest rates. As long as you keep your money in an E*TRADE CD during the entire term, you’ll collect your original investment plus interest. It can be a good supplement to higher-risk investments like stocks and bonds.
Here’s what makes E*TRADE CDs stand out from similar products on the market:
- Digital experience: You can open and manage your CD online or via the E*TRADE mobile app 24/7, without ever leaving the comfort of your home or office.
- No fees: E*TRADE doesn’t charge common CD fees, such as account maintenance and inactivity fees.
- No minimum deposit requirements: To open an E*TRADE CD, you can deposit as much or as little as you’d like.
- Variety of terms: Whether you’re looking for a short-term, 6-month CD, or a longer, 60-month term, E*TRADE has you covered.
- Daily interest compounding: Since interest compounds daily, instead of monthly, your money can grow faster with no additional risk.
- 10-day rate guarantee: If you fund your CD in the first 10 days, you’ll secure the higher rate, either the one when you opened your account or funded it.
Current E*TRADE CD rate breakdown
Due to its online presence and low overhead, E*TRADE offers some of the best rates on the market. Below are the current E*TRADE CD rates as of June 24, 2026.
| Term | Annual Percentage Yield (APY) |
|---|---|
| 6 months | 4.05% |
| 9 months | 4.10% |
| 12 months | 4.10% |
| 18 months | 4.00% |
| 24 months | 4.00% |
| 36 months | 4.00% |
| 60 months | 4.10% |
CD rates were accurate at the time of publishing. You should confirm rate information on displayname‘s website before applying.
The interest you’ll earn from an E*TRADE CD depends on the term you choose and how much you deposit. There are no minimum deposit requirements, so you may deposit $2,000 or $5,000 or a much larger amount, such as $20,000, $50,000, or even more.
In the table below, you’ll find the interest earnings based on several different scenarios:
| Term | $5,000 deposit | $20,000 deposit |
|---|---|---|
| 6-months | $99 | $398 |
| 12-months | $205 | $820 |
| 18-months | $304 | $1,218 |
| 36-months | $627 | $2,510 |
| 60-months | $997 | $4,458 |
Ideally, you’d keep your money in your CD until the end of the term. If life happens and you have to pull it out early, however, E*TRADE will charge you an early withdrawal penalty. The penalty will depend on your term and a set number of days of simple interest.
As of June 24, 2026, here are E*TRADE’s early withdrawal penalties:
| Term | Early withdrawal penalty, days of simple interest |
|---|---|
| 6-month | 45 |
| 9-month | 70 |
| 12-month | 90 |
| 18-month | 135 |
| 24-month | 180 |
| 36-month | 270 |
| 60-month | 450 |
How to choose the right E*TRADE CD term
The ideal E*TRADE CD term depends on your unique financial situation and goals. Ask yourself what you hope to do with the funds and how long you can realistically park them in the account. These guidelines can help you make an informed decision:
- Short-term CDs (3-6 months): If you want to save for an upcoming expense, such as a vacation or a home renovation, a short-term CD can be a good choice.
- Medium-term CDs (1-2 years): Medium-term CDs might make sense for goals you hope to accomplish within the next few years, such as buying a house or car.
- Long-term CDs (3-5+ years): If you’re confident you won’t need the money for a while and want to supplement college savings or your emergency fund, a long-term CD is worth exploring.
E*TRADE lets you open several CDs with different terms or maturity dates spaced out over time so you can build a ladder. CD laddering can lead to higher yields and easier access to your funds. If you go this route, you’ll need to decide how to divide your money across the CDs you choose.
For example, if you have $20,000 to deposit, you may open five E*TRADE CDs (6-month, 9-month, 12-month, 18-month, and 24-month) and stash $4,000 in each one.
E*TRADE CD rates vs. competitors
Before you move forward with an E*TRADE CD, it’s a good idea to compare it to other options.
E*TRADE CD rates vs. online banks
As you do your research, you’ll notice that E*TRADE CD rates are a bit higher than what you’d find at other online banks, such as Ally and Marcus. This is a huge plus if your primary goal is to maximize your investments.
E*TRADE rates vs. traditional banks
Compared to traditional banks like Bank of America and Wells Fargo, E*TRADE CD rates are more competitive as the company has less overhead. The potential downside, however, is that you’ll need to open and manage your CD online, and there are no brick-and-mortar locations.
E*TRADE CD rates are attractive, but other advantages of these CDs include no minimum deposit requirements, no fees, a 10-day rate guarantee, daily interest compounding, and access to a highly-rated mobile app for managing your account while on the go.
How to open an E*TRADE CD account
E*TRADE makes it easy to open a CD account online in minutes. To do so, follow these steps:
- Visit the displayname website and click on “open an account.”
- Select “Certificate of Deposit,” your preferred term, and how you’d like to receive your interest payment (into your CD account or sent to a mailing address).
- If you’re an existing E*TRADE customer, you’ll need to log in to your account. Otherwise, you’ll be prompted to create one with your personal information.
- Fund your E*TRADE CD through check, wire transfer, or ACH.
If you prefer to open your CD via phone, call E*TRADE at 800-387-2331. You can also download the application online and send it with a check to E*TRADE.
Managing your E*TRADE CD
To keep tabs on your E*TRADE CD, log into your online account or download the E*TRADE mobile app. Not only will you be able to see your account value, E*TRADE also provides free access to Bloomberg TV, breaking news, and third-party research you might find helpful for your financial life.
Bottom line: Are E*TRADE CDs worth it?
If you’re seeking an online CD with some of the most competitive, fixed rates on the market, an E*TRADE CD should be on your radar. You can choose from a number of terms and reap the benefits of daily compounding interest as well as the peace of mind of FDIC insurance.
Remember that CD rates are not set in stone, so it’s a good idea to check the displayname website for the latest rates.
