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.


Deposit accounts offered by participating institutions are eligible for Federal Deposit Insurance Corporation (FDIC) insurance up to $250,000. Limits are per account ownership per institution. Please monitor your entire deposit to ensure it does not exceed the coverage limit. To learn more about FDIC coverage go www.fdic.gov.


Brokered CDs sold prior to maturity in a secondary market may result in loss of principal due to fluctuation of interest rates, lack of liquidity, or transaction costs. Brokered CDs have an extended settlement period of up to two weeks. The settlement date and maturity date of the CD will be reflected on the trade confirmation. Amount of CDs available under certain offers is limited. Additional CD offerings with varying rates and maturities are available.

If you purchase a callable CD, the issuer can redeem or "call" your CD before maturity. Callable CDs may have a higher interest rate because of the risk that the CD will be redeemed early. If you purchase a non-callable CD, you will know exactly how long you will hold the CD and how much interest will be paid by the issuer.

CD Buy orders are subject to a 2 CD ($2,000 par value) minimum. TD Ameritrade does not allow the selling of a CD you do not own in your account (short selling.)

TD Ameritrade receives a placement fee from the issuing bank in connection with your purchase of a CD. You will not be charged any commissions in connection with your purchase of a CD.

Subject to availability and change in price. Availability of products and services may vary by jurisdiction.

TD Ameritrade, Inc., member FINRA/ SIPC / NFA . This is not an offer or solicitation in any jurisdiction where we are not authorized to do business. TD Ameritrade is a trademark jointly owned by TD Ameritrade IP Company, Inc. and The Toronto-Dominion Bank. © 2014 TD Ameritrade IP Company, Inc. All rights reserved. Used with permission.