Merrill A Bank of America Company Merrill A Bank of America Company

Certificate of Deposit (CD)

Q: How do brokered CD terms, minimum balances and rates interact?

Brokered CDs come in varying terms and generally require minimum purchases of $1,000. The rate you earn typically varies by the term. Note that Brokered CDs also have maximum purchase limits.

Get steady, predictable income with brokered CDs

Choose and open an account with Merrill

Already a Merrill client? Log in to get started with Merrill

How do CDs work?

In exchange for depositing your money into a certificate of deposit (CD) for a fixed time period, the issuer agrees to pay you back at a predetermined interest rate. When the CD matures, you get back the principal amount plus any interest that has accrued.

What's the difference between brokered CDs and traditional CDs?

Brokered CDs are purchased through a brokerage firm instead of directly at a bank, and yields on brokered CDs may be higher than yields on similar bank CDs.

If you need to access your funds before the CD's term ends, you may attempt to sell your CD if a market exists. The price can fluctuate based on the current interest rate environment.

Benefits of Brokered CDs

Can provide steady, predictable income
May offer more competitive yields than bank CDs
Are federally insured up to $250,000 per issuer per depositor
Offer potential to mitigate risk and diversify your portfolio

How to purchase CDs

Once you're logged into your account, you can use Merrill's fixed income Screener under the Research tab to search for CDs to purchase. Use pre‑defined search parameters or select your own criteria to find the CDs that align with your preferences.

If you already know the CUSIP number or issuer of the CD you want to purchase, you can go directly to the Trade tab and select Fixed Income to enter that information.

Ready to get started?

Schedule an appointment with Merrill

or call us at 888.866.2190

A full range of investment choices

Find your preferred way to invest, whether you're interested in simple stock trades or advanced options and margin trading.

Select to learn more about Stocks Select to learn more about Mutual Funds Select to learn more about ETFs Select to learn more about Fixed Income Select to learn more about Options Select to learn more about Margin Trading

Frequently Asked Questions

Expand all

How do CDs work?

Purchasing a brokered CD is similar to depositing funds in a bank. In exchange for the money you pay for the CD, the issuer agrees to pay you a predetermined interest rate that's typically higher than the rates offered on savings accounts. When the term is up (when the CD matures), you get back the principal (or face amount) plus any interest that has accrued.

If you need to access your funds before the CD's term ends, you may attempt to sell your CD if a market exists. The price can fluctuate based on the current interest rate environment.

How do I choose a CD?

There are several factors to consider when choosing a CD. First, when do you need the money? If you need it soon, consider a CD with a shorter term. If you're saving for something five years down the line, a CD with a longer term and higher rate may be a more prudent choice.

Also, consider the economic environment. If it seems that interest rates may rise, or if you want to open multiple CDs, CD laddering can be a good option.

How do brokered CD terms, minimum balances and rates interact?

What is a CD ladder and how do I build one?

Overall interest rates may change during your CD's term. If rates rise, you miss out on earning those higher rates, since your money is committed for the CD's term. However, if rates go down, you benefit: You still earn the higher rate that was offered when you opened the CD. CD laddering (buying multiple CDs of varying term lengths) can help address this concern. It can also be a way for you to take advantage of longer terms (and therefore typically higher interest rates) while still giving you access to some of your money each year.

With a CD ladder, you divide your initial investment into equal parts and invest each portion in a CD that matures every year. For example, say Leo has $10,000. To build a CD ladder, he invests $2,000 each in a 1-year, 2-year, 3-year, 4-year and 5-year CD. As each CD matures, he reinvests the money at the current interest rate or uses the cash for another purpose. If Leo reinvests his money, he might choose a new 5-year CD, which would ensure he has one CD maturing each year as long as he continues laddering.

What are callable CDs?

Callable CDs give, in its sole discretion, the issuer the right to terminate or "call back" your CD before it matures. This is more likely to happen if interest rates are lower than they were when you bought your brokered CD. You will still get back your principal and accrued interest up until that point, but you will miss out on any future interest that you could have earned if that brokered CD had not been called.

How are brokered CDs different from traditional bank CDs?

The market value of a brokered CD purchased through your brokerage account will fluctuate and, at times, may show a potential market value of more or less than the price you paid or face value of the CD. However, if you hold a brokered CD to maturity, you'll get back the principal amount plus interest; these price fluctuations only come into play if you sell your CD before maturity.

Note that brokered CDs held to maturity do not auto-renew. You'll need to purchase another CD if you desire.

Merrill may maintain a secondary market in brokered CDs, although it's not obligated to do so. You may be able to sell your brokered CD before it matures, but the price you receive could be less than your original investment.

Early withdrawals of brokered CDs are generally not permitted. In limited circumstances, such as the death of the owner of the CD, early withdrawal may be permitted.

Some brokered CDs, known as callable CDs, are subject to early redemption by the issuing bank at its sole discretion. They may offer higher yields than noncallable CDs, which return their principal at the stated maturity date. Callable CDs offer higher yields due to your risk of having your principal returned early and needing to purchase a new CD in a lower-interest-rate environment.

Brokered CDs purchased through your Merrill account pay simple interest; that is, interest is not compounded.

What does the FDIC insure?

FDIC insurance covers all types of deposits received at an insured bank per account ownership category. FDIC insurance does not cover investments, even if they were purchased at an insured bank under the FDIC's general deposits insurance rules.

You can calculate your insurance coverage using the FDIC's online Electronic Deposit Insurance Estimator (EDIE) at www.fdic.gov/edie/

You are responsible for monitoring the total amount of deposits (including CDs, checking, savings and money market deposit accounts) that you hold with any one issuer, directly or through an intermediary, in order for you to determine the extent of FDIC insurance coverage available to you on your deposits.

Merrill is not a bank and FDIC deposit insurance only covers the failure of an FDIC-insured bank.

Where can I get more information about FDIC insurance?

You can calculate your insurance coverage using the FDIC's online Electronic Deposit Insurance Estimator (EDIE) at Go to third-party website www.fdic.gov/edie popup

You can visit the FDIC website or call the FDIC directly at 877.ASK.FDIC (877.275.3342).

Merrill is not a bank and FDIC deposit insurance only covers the failure of an FDIC-insured bank.

MAP6629919-11162025

Connect with us:

Investment products offered through MLPF&S and insurance and annuity products offered through MLLA:

Are Not FDIC Insured	Are Not Bank Guaranteed	May Lose Value
Are Not Deposits	Are Not Insured by Any Federal Government Agency	Are Not a Condition to Any Banking Service or Activity

Investing in securities involves risks, and there is always the potential of losing money when you invest in securities.

Asset allocation, diversification, and rebalancing do not ensure a profit or protect against loss in declining markets.

Merrill, its affiliates, and financial advisors do not provide legal, tax, or accounting advice. You should consult your legal and/or tax advisors before making any financial decisions.

This material is not intended as a recommendation, offer or solicitation for the purchase or sale of any security or investment strategy. Merrill offers a broad range of brokerage, investment advisory (including financial planning) and other services. Additional information is available in our Client Relationship Summary (PDF).

Merrill Lynch, Pierce, Fenner & Smith Incorporated (also referred to as "MLPF&S" or "Merrill") makes available certain investment products sponsored, managed, distributed or provided by companies that are affiliates of Bank of America Corporation ("BofA Corp."). MLPF&S is a registered broker-dealer, registered investment adviser, Member Securities Investor Protection (SIPC) popup and a wholly owned subsidiary of Bank of America Corporation ("BofA Corp").

Merrill Lynch Life Agency Inc. (MLLA) is a licensed insurance agency and wholly owned subsidiary of BofA Corp.

Banking products are provided by Bank of America, N.A. and affiliated banks, Members FDIC and wholly owned subsidiaries of Bank of America Corporation.

Privacy | Security | Glossary | Advertising practices popup Advertising Practices popup

© 2024 Bank of America Corporation. All rights reserved.

4326521

I'd Like to

Discover Merrill

Contact Us

888.637.3343

Connect with us:

Unlimited $0 Trades

With Merrill Edge Self‑Directed, get unlimited free online stock, ETF and option trades with no trade or balance minimumsFooter footnote ^b

Options contracts and other fees may applyFooter footnote ^a

Open an account with Merrill Edge Self-Directed

Footer footnote
Other fees may apply. Free and $0 means there is no commission charged for these trades. $0 option trades are subject to a $0.65 per-contract fee. Sales are subject to a transaction fee of between $0.01 and $0.03 per $1,000 of principal. There are costs associated with owning ETFs. To learn more about Merrill pricing, visit our Pricing page.
Footer footnote

Merrill waives its commissions for all online stock, ETF and option trades placed in a Merrill Edge^® Self-Directed brokerage account. Brokerage fees associated with, but not limited to, margin transactions, special stock registration/gifting, account transfer and processing and termination apply. $0 option trades are subject to a $0.65 per-contract fee. Other fees and restrictions may apply. Pricing is subject to change without advance notice.

For broker-assisted trades through Merrill Edge, you will be charged a fee equal to the lower of $29.95 or 5.00% of the principal amount of the transaction. Further, there are indirect fees, such as annual management and other similar fees, that are charged by the manager or sponsor of an exchange-traded fund and of a closed-end fund, as disclosed in the product's prospectus.

Investment products offered through MLPF&S and insurance and annuity products offered through MLLA:

Are Not FDIC Insured

Are Not Bank Guaranteed

May Lose Value

Are Not Deposits

Are Not Insured by Any Federal Government Agency

Are Not a Condition to Any Banking Service or Activity

Investing in securities involves risks, and there is always the potential of losing money when you invest in securities.

Asset allocation, diversification, and rebalancing do not ensure a profit or protect against loss in declining markets.

The performance data contained herein represents past performance which does not guarantee future results. Investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance quoted. For performance information current to the most recent month end, please contact us.

Net Asset Value (NAV) returns are based on the prior-day closing NAV value at 4 p.m. ET. NAV returns assume the reinvestment of all dividend and capital gain distributions at NAV when paid.

Market price returns are based on the prior-day closing market price, which is the average of the midpoint bid-ask prices at 4 p.m. ET. Market price returns do not represent the returns an investor would receive if shares were traded at other times.

Returns include fees and applicable loads. Since Inception returns are provided for funds with less than 10 years of history and are as of the fund's inception date. 10 year returns are provided for funds with greater than 10 years of history.

Before investing consider carefully the investment objectives, risks, and charges and expenses of the fund, including management fees, other expenses and special risks. This and other information may be found in each fund's prospectus or summary prospectus, if available. Always read the prospectus or summary prospectus carefully before you invest or send money. Prospectuses can be obtained by contacting us.

Expense Ratio – Gross Expense Ratio is the total annual operating expense (before waivers or reimbursements) from the fund's most recent prospectus. You should also review the fund's detailed annual fund operating expenses which are provided in the fund's prospectus.

Merrill, its affiliates, and financial advisors do not provide legal, tax, or accounting advice. You should consult your legal and/or tax advisors before making any financial decisions.

Banking products are provided by Bank of America, N.A. and affiliated banks, Members FDIC and wholly owned subsidiaries of Bank of America Corporation ("BofA Corp.").

Merrill Lynch Life Agency Inc. (MLLA) is a licensed insurance agency and wholly owned subsidiary of BofA Corp.

Merrill A Bank of America Company Merrill A Bank of America Company

(AZ21********3V)