What Are CDs?

Certificates of Deposit (CDs) are savings certificates that entitle the owner to receive interest on their deposit. Investing in a CD lets you lock in a set interest rate for a specific time period. The CDs available to you through TD Ameritrade are called brokered CDs.

Bank vs. Brokered CDs

Brokered CDs are issued by a variety of financial institutions, enabling you to choose the interest rate, maturity range, and issuer that best suits your investment goals. They are similar to CDs purchased directly from a bank except they can be traded on the open market. Brokered CDs sold prior to maturity in a second market may result in loss of principal due to fluctuation of interest rates, lack of liquidity or transaction costs.

Why Buy CDs Through TD Ameritrade?

  • More Choices - Buying a CD through TD Ameritrade gives you access to a wide variety of issuers, so you can survey the marketplace for the CD that fits your investing goals.
  • FDIC Protection - CDs offered through TD Ameritrade are FDIC-insured up to $250,000 per depositor per insured bank, including any interest accrued. Your CD investments are insured up to the FDIC limit for each depositor at each issuing institution.
  • Knowledgeable Support - No matter what level of support you need, our Fixed Income Specialists are available to help.

Features and Benefits

  • Reliable income: CDs are designed to provide a steady and predictable income over the time period you choose.
  • Affordable minimum purchase: CDs are available for an initial investment as low as $2,000.
  • Estate planning: Most CDs offer estate protection which allows the investment to be redeemed at face value upon the death of the holder.


  • Selling Before Maturity: If you need to sell a CD before its maturity date, the sale proceeds may be more or less than your initial investment.1
  • Call Features: Some CDs may include a provision that allows the issuing bank to "call" or redeem the CD prior to maturity at a given price.
  • FDIC Coverage Limits: CDs are insured up to the FDIC limit per depositor per institution. If the total amount you have in deposit obligations at a specific institution exceeds the insurance limit, your deposits may not be fully protected.
  • Credit Risk: Since CDs are a debt instrument, there is a risk that the issuing institution will default. FDIC insurance helps mitigate that risk.