Brokered Certificates of Deposit

WHAT IS A CERTIFICATE OF DEPOSIT?

A certificate of deposit (CD) is a time deposit
that a financial institution issues for a set dollar
amount. When you purchase a CD, you are actually
depositing your money with the issuing institution
for a specified period of time. Generally, CDs are
issued in maturities ranging from three months
to several years. In return, you receive interest
payments. At the end of the specified time, your
principal is returned to you. Brokered CDs are CDs
issued by banks via a “Master CD” to a nationwide
brokerage community for distribution.

All CDs have a stated maturity date and interest
rate or rates. Because of the variety of features
available with brokered certificates of deposit, you
can select both the investment period and the rate of
return that best suits your income needs. Minimum
deposit amounts are usually $10,000 with $1,000
increments thereafter.

TYPES OF CDs AVAILABLE
Today, you have a greater selection of CD varieties
available to you. You will find the traditional fixed rate
type of CD in a range of maturities and interest
payment types, or you can choose from the less
traditional types that offer variable rates and callable
features. More options provide flexibility to select the
type of CD that best fits your investment choices.