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) - 1/24/2013
|Wachovia Bank||5||5.05%||8 month||9/30/2013||noncallable||nc||1.00%||$102.67||semi|
|Morgan Stanley Bank||25||5.00%||10 month||11/29/2013||noncallable||nc||1.00%||$103.72||semi|
|Discover Bank||25||1.10%||29 month||6/8/2015||noncallable||nc||1.00%||$100.23||semi|
|American Express||4||3.50%||4 year||12/2/2016||noncallable||nc||1.35%||$108.06||semi|
|Goldman Sachs Bank||35||2.10%||6.5 year||8/29/2019||noncallable||nc||2.10%||$100.00||semi|
|Goldman Sachs Bank||75||3.00%||14.25 year||4/30/2027||4/30/2013||3.00%||3.00%||$100.00||mthly|