Certificates of Deposit (CDs)

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

Bank NameQtyCouponTermMaturityCallableYTCYTMPricePays
Goldman Sachs Bank1014 month0.90%8/22/2014ncnc0.90%$100.00semi
Goldman Sachs Bank1515 month0.90%9/12/2014ncnc0.90%$100.00semi
GE Capital Retail1517 month1.55%11/17/2014ncnc1.00%$100.77semi
Goldman Sachs Bank10018 month0.75%12/5/2014ncnc0.75%$100.00semi
Goldman Sachs Bank5130 month0.90%1/25/2016ncnc1.00%$99.74semi
HSBC Bank USA159.75 year3.00%-5.50%2/10/20232/10/20151.10%4.07%$103.10qrtly