Edward Jones does not offer high-yield savings accounts
Edward Jones, a full-service brokerage and investment firm, does not have a dedicated high-yield savings product. The company focuses on investment accounts, retirement planning, and managed portfolios rather than deposit products like savings accounts. If you bank with Edward Jones for investments, you may have a cash management feature tied to your brokerage account, but this is not the same as a standalone savings account and typically does not offer competitive rates.
Edward Jones does offer money market accounts and certificates of deposit (CDs) through partner banks, which can hold cash and earn interest. However, these are not marketed as high-yield products, and the rates are usually lower than what you would find at online banks or credit unions that specialize in savings products. If you are looking for a place to park cash while keeping it accessible, Edward Jones can facilitate these options, but you should compare rates elsewhere first.
Key Takeaways
- Edward Jones does not offer high-yield savings accounts as a primary product.
- The company provides money market accounts and CDs through partner banks, but rates are typically not competitive with online banks.
- If you hold cash at Edward Jones, it may sit in a sweep account or money market fund that earns minimal interest.
- For high-yield savings, you will need to open an account at a separate institution such as an online bank or credit union.
Cash management options at Edward Jones
When you open a brokerage account at Edward Jones, any uninvested cash is typically swept into a money market fund or a sweep account. The rate on these accounts varies and is set by Edward Jones and its partner institutions. These are not high-yield products—rates are often well below 1% APY, even when market rates are higher.
Edward Jones also allows you to purchase CDs issued by partner banks. The rates on these CDs depend on the term length and the current market, but they are not always better than what you can find by shopping directly with banks. You can hold the CD inside your Edward Jones account, which may be convenient if you already manage investments there, but you are paying for that convenience through lower rates.
Why Edward Jones is not the right choice for high-yield savings
Edward Jones is built around investment management and advisory services, not deposit products. The company makes money through advisory fees and commissions on investments, not by competing on savings rates. As a result, their cash management offerings are secondary and not priced to attract savers looking for the highest possible return.
If you are comparing Edward Jones to online banks like Marcus, Ally, or American Express Personal Savings, you will find that online banks typically offer rates that are 4 to 5 times higher. Online banks have lower overhead costs and can pass savings on to customers in the form of better rates. Edward Jones, by contrast, has physical locations and advisors to pay for, which means their rates reflect those costs.
Where to find high-yield savings if you use Edward Jones for investing
You do not have to keep all your money in one place. Many people maintain a brokerage account at Edward Jones for investments while holding savings at a separate institution. This is a common and practical approach—your emergency fund or short-term savings can earn a competitive rate at an online bank, while your long-term investments stay at Edward Jones.
To find high-yield savings accounts, search for online banks and credit unions that offer rates above 4% APY. Rates change frequently, so check current offerings before opening an account. You can transfer money between institutions as needed, so there is no reason to accept a lower rate just because you already have an account somewhere else.
Money market funds versus high-yield savings at Edward Jones
Edward Jones offers money market mutual funds, which are different from money market accounts. A mutual fund holds a portfolio of short-term debt securities and pays dividends based on the interest those securities earn. The yield on a money market fund fluctuates with market rates and is not may provide. These funds also carry a small expense ratio—a yearly fee charged by the fund manager—which reduces your return.
A high-yield savings account, by contrast, is a deposit account insured by the FDIC (up to $250,000 per depositor per bank). The rate is fixed for the term you choose, and there are no ongoing fees. For money you need to keep safe and accessible, a high-yield savings account is simpler and more predictable than a money market fund.
How to move cash out of Edward Jones if you want better rates
If you have uninvested cash sitting at Edward Jones earning little to no interest, you can transfer it to a high-yield savings account at another bank. The process is straightforward: open an account at the bank of your choice, then request a transfer from Edward Jones. Most banks can initiate an ACH transfer, which typically takes 3 to 5 business days.
You can also withdraw cash from Edward Jones and deposit it directly into a savings account. This method is slower but gives you full control. Keep in mind that if you withdraw from a brokerage account, you may trigger tax reporting if you have sold investments at a gain, so check with your Edward Jones advisor or tax professional before making large withdrawals.
Frequently Asked Questions
Can I earn interest on cash held in my Edward Jones brokerage account?
Yes, but the rate is low. Cash is typically swept into a money market fund or sweep account earning less than 1% APY. You can also purchase CDs through Edward Jones, but rates are not competitive. For better returns, open a high-yield savings account elsewhere.
What is the difference between Edward Jones money market funds and high-yield savings accounts?
Money market funds are mutual funds that hold short-term debt and charge an annual fee. High-yield savings accounts are FDIC-insured deposit accounts with fixed rates and no fees. Savings accounts are simpler and safer for money you need to keep accessible.
Can I keep my investments at Edward Jones and my savings at another bank?
Yes. Many people do this. You can maintain a brokerage account at Edward Jones for long-term investments while holding emergency savings or short-term money at an online bank with a higher rate. Transferring money between institutions takes a few business days but is straightforward.
Do Edward Jones CDs offer better rates than online banks?
Usually not. Online banks and credit unions typically offer higher CD rates than Edward Jones. Shop around before committing to a CD, even if you already have an account at Edward Jones.
Is cash at Edward Jones FDIC insured?
Cash held in a money market sweep account or money market fund is not FDIC insured. CDs purchased through Edward Jones may be insured if they are issued by an FDIC-insured bank, but you should confirm this with your advisor. High-yield savings accounts at FDIC-insured banks are always protected up to $250,000.