E*TRADE Certificate of Deposit
Lock in up to 4.15% APY
Updated August 3, 2026 · By the MoneyAtlas Editorial Team
on E*TRADE's site
Why we rate it 4.1/5
E*TRADE CD rates sit near the top of the national market, but the account is rigid: fund once, no partial withdrawals.
No minimum to open, no monthly fee, and the published yield applies from the first dollar rather than a balance tier.
Seven terms from 6 to 60 months, but a single one-time funding window and no add-on deposits once it closes.
Standard brokerage-grade phone support, though redeeming at maturity requires a phone call inside a seven-day window.
The CD sits inside E*TRADE's full banking and brokerage platform, which is stronger than most standalone CD issuers offer.
Effectively a digital account; Morgan Stanley's wealth offices are not retail branches for E*TRADE deposit customers.
Quick Verdict
E*TRADE's bank CDs pay up to 4.35% APY as of July 2026, which puts them near the top of the national market, and there is no minimum to open. The accounts are issued by Morgan Stanley Private Bank rather than the brokerage, so they are ordinary FDIC-insured bank CDs and not brokered CDs. The catch is rigidity. You get one chance to fund the account, partial withdrawals are never allowed, and the grace period at maturity runs only seven days.
E*TRADE CD Overview
E*TRADE is the retail brokerage arm of Morgan Stanley, and its deposit products are held at Morgan Stanley Private Bank, National Association, a Member FDIC institution. That distinction matters when you compare these accounts to the brokered CDs sold inside an E*TRADE brokerage account. A bank CD carries FDIC protection up to applicable limits and a fixed rate set at funding. A brokered CD trades on a secondary market and can lose value if you sell before maturity. This review covers the bank CD.
Who Issues E*TRADE CDs?
The deposit sits at Morgan Stanley Private Bank, National Association, not at E*TRADE. E*TRADE is the brand you apply through and the servicing front end; the bank holds the money and carries the FDIC certificate. For most savers that is a distinction without a difference. It matters in one specific case, because FDIC coverage is counted per insured bank rather than per brand.
Morgan Stanley operates more than one insured bank. If you already hold deposits at Morgan Stanley Private Bank through another relationship, those balances and your E*TRADE CD count against the same $250,000 per-depositor limit for that ownership category. Compare the FDIC certificate numbers before assuming two accounts mean twice the coverage. Anything sitting on the brokerage side is a different matter entirely and is not FDIC insured at all.
Key Details
E*TRADE CD Rates by Term
Rates below are from E*TRADE's published CD table as of July 2026. APYs change without notice and are not guaranteed until the CD is funded and settled, so confirm the current figure on E*TRADE's rate sheet before you open an account.
The 10-Day Rate Guarantee
If your deposit settles within 10 calendar days of opening the account, E*TRADE applies the higher of the rate available on the opening date or the rate on the settlement date. That protects you from a rate cut while your transfer is in flight, and it hands you the upside if rates move the other way. Settlement timing follows the bank's funds availability policy, so an ACH transfer started at opening usually lands inside the window.
Early Withdrawal Penalties
E*TRADE charges a penalty equal to a set number of days of simple interest, and the count depends on the term you chose. The bank calculates it on the full principal, because partial withdrawals are not an option at any point in the term.
- The penalty is measured in days of simple interest, determined by the CD term
- If the penalty exceeds the interest you have accrued, the difference is taken from principal
An early exit during the first months of a term can therefore leave you with less than you deposited. Treat the money as committed for the full term.
What Happens at Maturity
The CD renews automatically into a new term of the same length, at whatever rate is current on the maturity date. You have seven calendar days after maturity to take a full redemption without penalty, and you do that by calling E*TRADE at 800-387-2331. Miss that window and the money is locked again for another full term. Set a reminder if you intend to move the funds, because seven days is short compared with the 14-day grace period some competitors offer.
How to Open an E*TRADE CD
- Apply online and choose the term you want
- Fund the account with a one-time ACH transfer, wire, or check within 90 calendar days
- Check your settlement date, since funding within 10 days triggers the rate guarantee
- Choose whether accrued interest posts monthly, quarterly, or is paid out by check
Compare
Bank CD vs. Brokered CD at E*TRADE
E*TRADE sells two products called a CD and they do not behave the same way. Both follow the same basic bargain, where you lock money up for a fixed term in exchange for a fixed yield, but the wrapper changes what you can do with it. The bank CD is the account reviewed here: you open it on the banking side, the rate is set when the deposit settles, and Morgan Stanley Private Bank holds it. The brokered CD is a security. You buy it inside your brokerage account, it comes from a third-party issuing bank, and it trades on a secondary market.
The practical split is liquidity against certainty. A brokered CD can be sold before maturity, which is the only way out of a CD early without an interest penalty, but the sale clears at whatever the market will pay. If rates have risen since you bought, that price is below par and you eat the difference. The bank CD has no secondary market and no partial withdrawals, so leaving early means the full-principal penalty described above. Both are FDIC insured at the issuing bank, and neither protects you from the rate you locked looking bad two years later.
Neither one wins outright. Take the bank CD if you are confident about the term and want the rate fixed the day the money lands; it is worth running the numbers on a specific term before you commit. Take the brokered CD if you want an exit ramp and can accept market-price risk on the way out. If you might actually need the cash, neither belongs in the plan, and a high-yield savings account is the better home. Interest on any of them is taxable as ordinary income in the year it is credited, which is worth weighing against a tax-advantaged account.
Who Should Open an E*TRADE CD?
An E*TRADE CD suits savers with a lump sum they will not need to touch, especially if they want a yield near the top of the national market. Look elsewhere if partial access matters to you. Other CD rates come with more forgiving withdrawal terms, and the E*TRADE Premium Savings Account pays a variable rate while letting you withdraw whenever you want.
FAQ
Pros
Up to 4.35% APY: The 36-month and 60-month terms both pay 4.35% APY as of July 2026, and the rate is fixed for the full term.
No minimum deposit or monthly fee: You can open a CD with any amount, and no maintenance charge reduces what you earn.
10-day rate guarantee: If your deposit settles within 10 calendar days of opening, you get the higher of the rate at opening or the rate at settlement.
Cons
One-time funding only: You must fund the account within 90 days of opening, and no additional deposits are permitted after that window closes.
No partial withdrawals: Taking any money out before maturity means closing the entire CD and paying the early withdrawal penalty.
Seven-day grace period: The window to redeem penalty-free after maturity is short, and an unattended CD renews automatically at whatever rate is current.