E*TRADE Certificate of Deposit
Lock in up to 4.35% APY
Updated July 27, 2026 · By the MoneyAtlas Editorial Team
on E*TRADE's site
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.
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
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.