CDs are time deposits. You agree to place your funds on deposit with a bank for a stated period of time. During the term of the CD, your funds earn interest at either a stated interest rate or at a rate based upon an agreed method of calculation, such as the percentage increase in the stock market. We use them as short-term investments (1-2 years) in tax deferred accounts.
We also may use CDs with rates that have a variable rate (such as Prime Rate) or a contingent rate (linked to stock market). CDs are taxable, although taxes can be deferred in IRAs. (Such deferrals may have a penalty for early withdrawal.) CDs are FDIC insured up to $250,000 per account holder.
CDs that are currently available to our clients through TD Ameritrade Institutional (subject to availability) - 7/8/2013
|Fifth Third Bank||200||0.30%||1/3/2014||noncallable||nc||0.60%||$99.85||mat|
|GE Capital Bank Retail||10||3.50%||4/29/2021||noncallable||nc||3.05%||$103.10||semi|
|HSBC Bank USA||2||4.15%||2/16/2022||2/16/2015||4.75%||4.29%||$99.00||mthly|
|HSBC Bank USA||30||3.00%-5.50%||2/3/2023||2/3/2015||1.50%||4.18%||$102.30||qrtly|