Edward Jones does not offer traditional savings accounts
Edward Jones, the investment firm with offices in most towns across the United States, does not have a savings account product. They are an investment brokerage, not a bank. If you walk into an Edward Jones office looking to open a savings account, they will not be able to set one up for you.
What Edward Jones does offer are investment accounts — places to buy stocks, bonds, mutual funds, and other securities. These are different from savings accounts. A savings account is a deposit account held at a bank or credit union where your money sits safely and earns interest. An investment account is where you buy and sell securities, and the value goes up or down based on market performance.
If you need a savings account, you will need to open one at a bank, credit union, or online bank instead. Edward Jones can be useful for other financial goals, but savings accounts are not something they provide.
Key Takeaways
- Edward Jones is an investment brokerage, not a bank, so they do not offer savings accounts.
- Edward Jones offers brokerage accounts where you can buy and sell investments like stocks and mutual funds, which is different from a savings account.
- To open a savings account, you need to go to a bank, credit union, or online bank instead.
- Edward Jones advisors can help you with investment strategy, but they cannot provide the deposit account services that banks offer.
- Some people use both — a savings account at a bank for emergency money, and an investment account at Edward Jones for longer-term goals.
What Edward Jones actually offers instead
Edward Jones has several types of accounts, but none of them work like a savings account. The main account types are brokerage accounts, retirement accounts (like IRAs and 401(k) rollovers), and college savings accounts (529 plans). In all of these, your money is invested in securities — you are not straightforward depositing money and earning interest.
A brokerage account at Edward Jones lets you buy and sell stocks, bonds, mutual funds, and other investments. Your money is not sitting in a safe deposit; it is actively invested. The value can go up or down depending on market conditions. Edward Jones charges fees for these accounts, typically based on the assets you have invested.
If you are looking for a place to keep emergency money or save for a short-term goal, a brokerage account is not the right tool. That is what a savings account is for. But if you have money you want to invest for retirement or a longer time horizon, Edward Jones can help you do that.
How Edward Jones differs from a bank
The key difference is that Edward Jones is a brokerage firm, while a bank is a depository institution. Banks take deposits and hold them safely. They pay you interest on savings accounts. They also lend money — mortgages, car loans, personal loans. Edward Jones does none of that.
Edward Jones employs financial advisors who work with you one-on-one. They can discuss your financial goals and recommend investments. Many people find this personal service valuable, especially if they are new to investing. However, this service model also means Edward Jones typically has higher fees than online banks or discount brokerages.
Banks, especially online banks, usually have lower fees and higher interest rates on savings accounts. But they typically do not offer the same level of personal information. The choice depends on what you need: if you want a safe place to save money and earn interest, go to a bank. If you want to invest money and get personalized guidance, Edward Jones is an option.
Where to open a savings account instead
You have several options for opening a savings account. Traditional banks like Wells Fargo, Bank of America, and Chase have branches in most communities. They offer savings accounts, checking accounts, and other services. The downside is that their savings account interest rates are often quite low.
Credit unions are member-owned financial institutions that often offer better interest rates than big banks. If you are may be able to access to join one — through your employer, your school, or your neighborhood — it is worth exploring. You can find credit unions near you through the CO-OP Network or Shared Branch locator.
Online banks like Ally, Marcus, and Discover typically offer the highest interest rates on savings accounts because they have lower overhead costs. You cannot walk into a branch, but you can manage your account online or by phone. Online banks are a good choice if you want to earn more interest and do not need in-person service.
When you might use both Edward Jones and a bank
Many people have accounts at both places, and that makes sense. You might keep three to six months of living expenses in a savings account at a bank — this is your emergency fund, and you want it safe and accessible. At the same time, you might have a brokerage account at Edward Jones or another investment firm where you invest money for retirement or other long-term goals.
The two serve different purposes. A savings account is for money you might need soon. An investment account is for money you can afford to leave invested for years. Mixing the two — trying to use an investment account as an emergency fund — usually leads to problems. If you need the money and the market is down, you may have to sell at a loss.
If you are working with an Edward Jones advisor, they should be able to discuss this with you. A good advisor will recommend keeping emergency savings separate from investments. However, Edward Jones cannot provide the savings account part of that plan, so you will need to open one elsewhere.
Questions to ask before choosing where to save
Before you open any account, think about what you are saving for and when you might need the money. If it is an emergency fund or money for a goal within the next year or two, a savings account at a bank or credit union is the right choice. If it is money you will not need for five years or more, investing might make sense.
When comparing banks or credit unions, look at the interest rate they offer on savings accounts. Rates change frequently, so check current rates before you decide. Also look at any monthly fees — many banks charge a fee if your balance drops below a certain amount, though many online banks have no minimum balance requirement.
If you are considering Edward Jones or another investment firm, ask about their fees upfront. Investment accounts typically charge a percentage of the assets you have invested, or a flat fee, or a combination. Make sure you understand what you will pay before you open an account.
Frequently Asked Questions
Can I move money between Edward Jones and a bank savings account easily?
Yes. You can transfer money from a bank account to Edward Jones to invest, and you can withdraw money from Edward Jones back to your bank account. The process typically takes a few business days. However, if you sell investments at Edward Jones to get the cash, that can take a few days, and you might owe taxes on any gains.
Does Edward Jones pay interest on cash sitting in my account?
Edward Jones offers a cash management feature, but the interest rate is typically very low — often lower than what you would get at a bank or online savings account. If you have cash you want to earn interest on, a savings account at a bank is a better choice.
What if I want to invest but also have a savings account?
Open a savings account at a bank or credit union for your emergency fund and short-term savings. Then open an investment account at Edward Jones or another brokerage if you want to invest for longer-term goals. Many people do both, and it is a smart approach.
Is Edward Jones safe if I put money there?
Edward Jones is a legitimate, established firm. However, investments are not insured the way bank deposits are. Bank deposits are protected by the FDIC up to $250,000 per account. Investments at a brokerage are protected by SIPC insurance, but that works differently and does not protect against investment losses.
Can an Edward Jones advisor help me open a savings account elsewhere?
Your Edward Jones advisor can discuss your overall financial plan and recommend that you keep emergency savings in a bank account. However, they cannot open a savings account for you — you will need to do that directly with a bank or credit union yourself.