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) - 7/8/2013

Bank NameQtyCouponMaturityCallableYTCYTMPricePays
Fifth Third Bank2000.30%1/3/2014noncallablenc0.60%$99.85mat
Discover Bank202.45%6/23/2015noncallablenc1.00%$102.79semi
American Express752.05%12/15/2016noncallablenc1.65%$101.32semi
GE Capital Bank Retail103.50%4/29/2021noncallablenc3.05%$103.10semi
HSBC Bank USA24.15%2/16/20222/16/20154.75%4.29%$99.00mthly
HSBC Bank USA303.00%-5.50%2/3/20232/3/20151.50%4.18%$102.30qrtly