Schwab Brokered CD Review (2026)
CD vs MYGA, after tax
What $100,000 earns in 5 years: CD vs MYGA, after tax
Rates used: CD 5.00%, the top nationally available 5-year CD (Bankrate, October 14, 2026); change it to the rate you are offered. MYGA 5.95%, the best A-rated rate we track as of October 13, 2026: Delaware Life Pinnacle Plus 5-year (AM Best A-, negative outlook, 7/31/2026), $100,000 and up, effective October 6, 2026 (Delaware Life rate sheet).
| CD, interest taxed every year | $121,081 |
|---|---|
| MYGA, tax-deferred, before tax | $133,507 |
| MYGA after paying tax on all the interest at withdrawal | $126,136 |
| Tax deferral alone adds about | $674 |
| MYGA ahead of the CD, after tax | $5,055 |
Assumes 22% federal and 0% state income tax, no withdrawals, rates held for the whole term. MYGA interest is taxed as ordinary income when you withdraw it, not as capital gains. Gains taken before age 59 1/2 can owe a 10% IRS penalty, and cashing out early can cost a surrender charge. In an IRA both grow tax-deferred, so the edge there is the rate alone. Bank and credit union deposits are FDIC or NCUA insured up to the limits; a MYGA is backed by the issuing insurer's claims-paying ability and your state's guaranty association up to its limits, not the FDIC. General education, not tax, legal or financial advice.
CD OneSource: Schwab's Brokered CD Marketplace
Charles Schwab operates its brokered CD business under the brand CD OneSource. Like Fidelity's platform, CD OneSource aggregates new-issue and secondary-market CDs from a deep roster of FDIC-insured banks and presents them to retail and advised customers through a single brokerage account interface.
Schwab acquired TD Ameritrade in 2020 and completed the platform integration in 2023-2024, consolidating both firms' CD desks into the single CD OneSource platform. TD Ameritrade customers who held brokered CDs were migrated to Schwab; the underlying CDs were unaffected (they were always issued by the underlying banks, not by the brokerage).
The mechanics mirror Fidelity:
- Log into Schwab → Trade → Bonds & Fixed Income → CDs.
- Filter by term, issuing bank, callable/non-callable, settlement date.
- $1,000 minimum, $1,000 increments.
- Interest paid to your Schwab cash position.
- Principal returned at maturity to your cash sweep.
Rates expire like milk.
The best MYGA, CD and savings rates change every few weeks. Get a short email when a rate on this page changes.
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Rate Snapshot (Mid-2026, not current)
Indicative new-issue brokered CD yields on Schwab's CD OneSource in mid-2026. These are not today’s yields; Schwab’s own CD page notes its displayed rates can lag, so check live inventory at schwab.com/cds):
| Term | Indicative Yield Range |
|---|---|
| 3 months | 4.50-4.85% |
| 6 months | 4.55-4.95% |
| 9 months | 4.50-4.90% |
| 12 months | 4.50-4.90% |
| 2 years | 4.40-4.80% |
| 3 years | 4.35-4.75% |
| 5 years | 4.40-4.80% |
| 10 years (callable) | 5.00-5.40% |
Yields on Schwab and Fidelity are nearly identical day-to-day because both platforms source from largely the same syndicate of issuing banks. Any difference is usually within 5-10 basis points and changes daily based on which underwriters have inventory.
Fees and Costs
- New-issue brokered CDs: Zero commission. Bank pays Schwab the sales concession.
- Secondary market CDs (online): $1 per $1,000 face value, $10 minimum.
- Secondary market CDs (broker-assisted): $25 service charge plus the online rate.
- Account fees: None on a standard Schwab brokerage account.
The same opportunity-cost warning applies as with Fidelity: cash waiting for settlement or sitting after maturity earns only the Schwab cash sweep rate, currently lower than the CD itself. Build a rolling ladder to keep capital deployed.
Secondary Market and Liquidity
CD OneSource includes a full secondary market for previously issued CDs. You can buy used CDs at a discount or premium depending on the rate environment, and you can sell your existing CDs before maturity. The mechanics are identical to Fidelity's: the bid-ask spread is the implicit cost, and the price reflects current interest rates relative to the CD's coupon.
For a saver who needs the option to liquidate early without an early-withdrawal penalty, brokered CDs (Schwab or Fidelity) structurally beat direct bank CDs. The trade-off is the risk of capital loss if rates rise. Holding to maturity always returns par plus all promised interest, same as a direct bank CD.
Callable CD Caution on Schwab Inventory
A meaningful slice of Schwab's CD inventory is callable. Longer maturities (5+ years) on Schwab are disproportionately callable. The yields you see north of 5% on a 10-year CD are almost always callable. The issuing bank will call when rates drop, returning your principal exactly when you want to be locked in to the high rate. Default to non-callable on Schwab unless you have a specific tactical reason. See our callable CD trap explainer.
Schwab vs Fidelity, A Functional Tie
| Feature | Schwab CD OneSource | Fidelity Fixed Income |
|---|---|---|
| Inventory depth | 100+ issuers | 100+ issuers |
| New-issue commission | $0 | $0 |
| Secondary commission | $1/$1K (min $10) | $1/$1K (min $10, max $250) |
| Minimum | $1,000 | $1,000 |
| Secondary market | Yes | Yes |
| IRA-eligible | Yes | Yes |
| Mobile/web interface | Good: recently redesigned | Good: long-standing tool |
If you already have a Schwab brokerage, stay there. If you already have a Fidelity brokerage, stay there. If you have neither, both are excellent.
Where MYGAs Fit
Same comparison as the Fidelity review: A-rated 5-year MYGAs topped out around 5.50% to 6.05% (public carrier rate sheets, 10/14/2026), while Schwab's 5-year brokered CDs were around 4.65% in mid-2026 (check today's inventory). The premium reflects MYGA's insurance-contract status, longer surrender period, and tax-deferral. For 401(k) rollover money or any bucket already destined for a multi-year lock, MYGA wins on yield. For taxable money where you want full sell-anytime liquidity, brokered CDs on Schwab win on flexibility.
Frequently Asked Questions
Related Reading
- Fidelity brokered CD review
- Vanguard brokered CD review
- TD Ameritrade CD migration
- Callable CD traps
- Edward Jones CD review
Get a second opinion on your CD or large-deposit strategy
Talk to a licensed independent expert before you commit to a multi-year CD or place a large deposit.
If you're stacking FDIC categories, choosing a brokered CD desk, or weighing MYGAs against CDs for your fixed-income bucket, a 15-minute independent review confirms (or improves) your plan.
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Hans Goldstein · 213-414-2808 · NPN 20602398, independent licensed insurance producer appointed with multiple A-rated carriers
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Disclosure
This article reflects publicly available information and approximate rates as of the date stated above. CD rates, brokered CD inventories, FDIC and NCUA rules, and carrier MYGA rates change frequently, often daily. Always verify current values against the issuing institution's official disclosure documents before committing funds. This is general education, not a personal recommendation or an offer of any product. Hans Goldstein is an independent licensed insurance producer (NPN 20602398) appointed with multiple A-rated carriers across the annuity market; this article is not an endorsement of any specific bank, brokerage, credit union, or carrier. No compensation has been received from any reviewed institution in connection with the publication of this article. FDIC and NCUA insurance limits, ownership category rules, and the operations of CDARS, ICS, and other IntraFi programs are governed by federal regulation and the program documents; always confirm coverage with the institution and refer to FDIC.gov, NCUA.gov, or IntraFi.com for the official rules. MYGA carrier financial strength ratings, state guaranty fund limits, and tax treatment are subject to change. Always read the actual contract and consult a licensed advisor before purchasing any annuity, CD, or insurance product.