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) - 6/12/2013
|Goldman Sachs Bank||10||14 month||0.90%||8/22/2014||nc||nc||0.90%||$100.00||semi|
|Goldman Sachs Bank||15||15 month||0.90%||9/12/2014||nc||nc||0.90%||$100.00||semi|
|GE Capital Retail||15||17 month||1.55%||11/17/2014||nc||nc||1.00%||$100.77||semi|
|Goldman Sachs Bank||100||18 month||0.75%||12/5/2014||nc||nc||0.75%||$100.00||semi|
|Goldman Sachs Bank||51||30 month||0.90%||1/25/2016||nc||nc||1.00%||$99.74||semi|
|HSBC Bank USA||15||9.75 year||3.00%-5.50%||2/10/2023||2/10/2015||1.10%||4.07%||$103.10||qrtly|