Dedicated to Deposits: Deals, Data, and Discussion

3.00% 3-Month CD at TD Ameritrade - Nationally Available


TD Ameritrade is offering a special 3.00% APY certificate of deposit. The minimum deposit is $25,000 and the maximum is $250,000. The 3% APY is listed at the promo page as of 3/14/09 and is subject to change.

According to the promotion instructions you open your TD Ameritrade account online, fund the account with at least $25,000 by 3/25/09, they'll email you an access code, and then you'll need to log in and open the CD by 3/27/09.

This is brokered CD that's held by TD Bank USA, N.A. (FDIC Certificate # 33947). This is very similar to a CD promotion they had in December 2007 (when the APY was 5.30%).

A general overview of brokered CDs is provided by Justin at the About's Banking/Loans blog, and this SEC site has some additional issues to consider.

Thanks to the reader who mentioned this CD in the comments.

Edit: Clarified info on the brokered CD and TD Bank.

  Tags: CD rates

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Comment #1 by Anonymous posted on
TD Bank USA NA is FDIC insured (certificate #33947), so insurance is not an issue with this CD. Your post is a little confusing on this topic. While the CD is brokered by TD Ameritrade, it's only brokered to TD Bank (TDA's affiliate), not any other bank.

Comment #2 by Banking Guy (anonymous) posted on
Banking Guy
Thanks. I've updated the post with this info.

Comment #3 by Anonymous posted on
This ia a brokered CD. This means that if you open an account with TD Ameritrade today and transfer the money, you may not get your CD for a week or two. Also, when the term of your CD expires, it will need to be sold before you can get your money back, i.e., depending on the demand, you may or may not get back your entire principal. None of this as adequately disclosed on TD's site and I had to have a lengthy conversation with one of TD's reps to determine this.

Comment #4 by Anonymous posted on
This is what I got from reps when I asked why it takes so long from 3/16/09 when ACH was done:
"Since the CD offer is very time sensitive I can understand your concern. I checked with our Fixed Income team, and the order has been placed for you. The actual trade date for the purchase is 3/20/09, however, which is why you are not seeing it reflected in your account yet. As of 3/20/09, it will show up for you.

This time frame is normal for purchases on brokered CDs, and due to the way our platform is set up, fixed income trades that are pending regrettably do not show in the account until the trade date itself."
Looks like it's 5 business days - isn't it?

Comment #5 by Anonymous posted on
Offer Details
Offer valid for a limited time only for individuals who register for the promotion online through the offer email and deposit $25,000 or more in new assets to their account by 03/25/09. Internal transfers will not be accepted as valid funding for this promotion. Registered clients will receive an email within 2 business days after a qualifying deposit posts to their account, with instructions on how to purchase the CD online. Clients must have a valid email address on file to participate. Offer not valid for TD AMERITRADE Investing Accounts using the Amerivest service. Offer not valid for accounts managed by independent investment advisors and maintained by TD AMERITRADE Institutional. Limit one offer per promotion per client/account type. Offer is not transferable. Offer valid for U.S. residents only. Offer not available on IRAs or other tax-exempt accounts. TD AMERITRADE reserves the right to restrict or revoke this offer at any time. This is not an offer or solicitation in any jurisdiction where we are not authorized to do business.

Special 3-month CD rate of 3.00% APY is current as of 3/12/09. Rate is only good online and valid for new deposits. This promotional rate is available for a limited time only, is subject to change without prior notice and this offer may be withdrawn at any time. Number of CDs available through this offer is limited. Minimum CD purchase amount is $25,000 with a maximum purchase amount of $250,000. Additional CD offerings with varying rates and maturities are available.

About Brokered CDs
The types of CDs available through TD AMERITRADE are called brokered CDs. They are similar to CDs purchased directly from a bank, except they can be traded on the open market. This means you can sell a brokered CD before its maturity date. Should you choose to sell your CD prior to maturity, you should know that brokered CDs sold prior to maturity may result in loss of principal due to fluctuation of interest rates, lack of liquidity or transaction costs. TD AMERITRADE, though not obligated to do so, may maintain a secondary market in the CD after its settlement date. Brokered CDs have an extended settlement period of up to two weeks. The settlement date and maturity date of the CD will be reflected on your trade confirmation.

Comment #6 by Anonymous posted on
the money earns almost no interest for 7 days since the cd purchse takes 5 business days.
i have a bad taste in my mouth....

Comment #7 by Anonymous posted on
Can you lose any of the principal if you let it sit until maturity?

Comment #8 by Shane (anonymous) posted on
3 mo CD at TD Ameritrade is now 1.5%.