Haris Ashley
Edward Jones is not an FDIC-insured institution, meaning that deposit insurance only covers the failure of an insured bank. However, the Edward Jones Insured Bank Deposit Program provides FDIC protection for deposits held in the program. The program offers a competitive interest rate and up to $5 million of FDIC coverage for savings accounts. Edward Jones Bank, an industrial bank chartered in Utah, is currently being established to expand the financial firm's offerings and serve more clients.
| Characteristics | Values |
|---|---|
| Status of Edward Jones as an FDIC-insured institution | Edward Jones is not an FDIC-insured institution |
| Deposit insurance coverage | Deposit insurance covers the failure of an insured bank |
| FDIC insurance for brokered-CDs | Provided by FDIC-insured banks on a "pass-through" basis with certain conditions |
| Availability of the Edward Jones Money Market Fund | No longer available for new Select accounts or existing Select accounts without the Fund as the sweeper option as of Feb 9, 2019 |
| Edward Jones Insured Bank Deposit Program | Offers FDIC protection, competitive interest rates, and up to $5 million of FDIC coverage ($10 million for joint accounts) |
| Application for Edward Jones Bank | Submitted to the FDIC in April 2025, with previous applications withdrawn in Oct 2022 |
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What You'll Learn
Edward Jones Money Market Fund
As of February 9, 2019, the Edward Jones Money Market Fund is no longer available for new Select accounts or existing Select accounts that did not have the Fund as the sweeper option at that time. The Fund is still available for new pooled retirement plans, Advisory Solutions accounts, and Guided Solutions accounts.
The Edward Jones Money Market Fund's yields represent past performance, which is not a guarantee of future results. Current performance may differ from the quoted performance, and yields will fluctuate with changing market conditions. The seven-day net annualized yield is based on the average net income per share and the offering price on the date of calculation.
It is important to carefully consider the investment objectives, risks, charges, and expenses before investing. The prospectus and summary prospectus are available from your financial advisor and contain important information about the Fund.
Edward Jones is not an FDIC-insured institution, and deposit insurance only covers the failure of an insured bank. However, they offer the Edward Jones Insured Bank Deposit Program, which includes Federal Deposit Insurance Corporation (FDIC) protection. This program provides competitive interest rates and up to $5 million of FDIC coverage ($10 million for joint accounts) for savings. FDIC insurance for deposits held in the Program is provided by FDIC-insured banks that participate in the Program on a "pass-through" basis, requiring certain conditions to be met for coverage.
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Edward Jones is not an FDIC-insured institution
The Edward Jones Insured Bank Deposit Program is an interest-bearing savings solution that includes Federal Deposit Insurance Corporation (FDIC) protection. This program offers a competitive interest rate and up to $5 million of FDIC coverage for your savings. However, this program is facilitated by a network of FDIC-insured banks that participate in the program on a "pass-through" basis. This means that while your deposits are insured, Edward Jones itself is not an FDIC-insured institution.
It's important to understand the distinction between Edward Jones and the banks that partner with them. While Edward Jones offers financial services and products, it does not hold your deposits directly. Instead, it facilitates the relationship between you and the FDIC-insured banks that will hold your deposits. This is why your deposits are insured, but Edward Jones itself is not an insured institution.
The list of banks in the Edward Jones network offering brokered FDIC-insured certificates of deposit (CDs) changes frequently. You can obtain the most up-to-date list from your financial advisor, who can also help you determine availability and provide additional information about the program.
It's worth noting that Edward Jones has applied to establish Edward Jones Bank, an industrial bank chartered in Utah. If approved, this would allow Edward Jones to become an FDIC-insured institution and directly offer banking services to its clients. However, as of April 2025, the application is still pending, and Edward Jones remains a non-bank, non-FDIC-insured institution.
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FDIC insurance for deposits
Edward Jones is not a bank or FDIC-insured institution. However, it does offer an Insured Bank Deposit program that includes Federal Deposit Insurance Corporation (FDIC) protection. This program offers a competitive interest rate and up to $5 million of FDIC coverage ($10 million for joint accounts with two or more account owners). FDIC insurance for deposits held in the program is provided by FDIC-insured banks that participate in the program on a "pass-through" basis, which requires certain conditions to be met for coverage to apply.
FDIC deposit insurance is backed by the full faith and credit of the United States Government. It protects the money depositors place in insured banks in the unlikely event of an insured bank failure. Each depositor is insured to at least $250,000 per insured bank. FDIC deposit insurance covers all types of deposits held at an insured bank. This includes deposits in a checking account, negotiable order of withdrawal (NOW) account, savings account, money market deposit account (MMDA), certificate of deposit (CD), or other time deposit account. Coverage is automatic when you open one of these account types at an FDIC-insured bank.
FDIC insurance does not cover losses in market value. It also does not insure non-deposit investment products, such as stocks, bonds, government and municipal securities, mutual funds, annuities, life insurance policies, savings bonds, and crypto assets.
The FDIC provides resources to help consumers understand and utilize deposit insurance. The FDIC Electronic Deposit Insurance Estimator (EDIE) is an online tool that can be used to determine whether your accounts are fully insured at each insured bank where your deposits are held.
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Edward Jones Bank charter application
Edward Jones is a leading North American financial services firm in the US, with over 20,000 financial advisors serving more than 9 million clients and $2.2 trillion in client assets as of December 31, 2024. The firm has announced its application to the Federal Deposit Insurance Corporation (FDIC) and the Utah Department of Financial Institutions (UDFI) to establish Edward Jones Bank, a Utah-chartered industrial bank. This is not the first time the firm has applied for this charter; it initially applied in 2020 but withdrew its application in 2022, citing the "environment" at the time.
The firm's head of branch development and US business, David Chubak, stated that a banking charter would "simplify our clients' financial lives and reflects our firm's focus on meeting their evolving needs". Edward Jones already offers a range of banking products, including margin loans, credit cards, and various cash management options. With the charter, the company would be able to expand its offerings to include the Edward Jones Insured Bank Deposit Program, issue Certificates of Deposit (CDs), and expand the availability of its existing securities-based line of credit.
The application has faced some opposition, with concerns raised about mixing banking and non-financial activities, as well as issues related to the use, privacy, and security of customer information. ILC opponents argue that the model allows companies to offer banking services without oversight from the Federal Reserve. Despite this, Edward Jones is not the only company pursuing this route, and if approved, veteran banker Andrea Moss will serve as the bank's CEO.
The firm expects the application process to take an extended period of time, and if approved, the bank's operations could begin by the end of the following year. This development showcases Edward Jones' commitment to enhancing its financial services and better serving its clients' comprehensive financial goals.
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Edward Jones Insured Bank Deposit program
The Edward Jones Insured Bank Deposit program is an interest-bearing savings solution that includes Federal Deposit Insurance Corporation (FDIC) protection. This program offers a competitive interest rate and up to $5 million of FDIC coverage ($10 million for joint accounts with two or more account owners) for your savings.
It is important to note that Edward Jones is not a bank or FDIC-insured institution, and deposit insurance only covers the failure of an insured bank. FDIC insurance for deposits held in the Program is provided by FDIC-insured banks that participate in the Program on a "pass-through" basis. Certain conditions must be met for this coverage to apply. The FDIC insurance limit for all insurable capacities in the Insured Bank Deposit program is $250,000 per program bank.
The program interest rate is influenced by several factors, including the total amount paid on deposits by the program banks, the fee paid to Edward Jones, and a fee paid to a third party assisting Edward Jones in operating the program. The fee paid to Edward Jones will impact the interest rate and may even exceed the amounts paid to clients as interest.
The Insured Bank Deposit program is one of the solutions offered by Edward Jones to provide FDIC protection for money being saved or spent in the near future, helping clients achieve their long-term goals while also catering to their short-term savings needs and expenses.
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Frequently asked questions
No, Edward Jones is not a bank or FDIC-insured institution.
The Edward Jones Money Market Fund is no longer available for new Select accounts. The fund is still available for new pooled retirement plans, Advisory Solutions accounts, and Guided Solutions accounts.
Edward Jones offers an Insured Bank Deposit program that includes Federal Deposit Insurance Corporation (FDIC) protection. This program offers up to $5 million of FDIC coverage for your savings.
The Edward Jones Insured Bank Deposit program offers up to $10 million of FDIC coverage for joint accounts with two or more account owners.
