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Buying & selling CDs

Shop for CDs from banks across the country through Vanguard Brokerage.

POINTS TO KNOW

  • All CDs sold through Vanguard Brokerage are brokered CDs.
  • It's easy to research and buy CDs online.
  • You'll have FDIC coverage for $250,000 in CD purchases from each bank that sells you CDs through Vanguard Brokerage.

One-stop shopping for CDs

If you're in the market for CDs (certificates of deposit), you can take the time to shop around at various banks. Or you can take an easier route.

Through your Vanguard Brokerage Account, you can see what CDs banks across the country are offering—on your desktop, laptop, or mobile device.

Besides the range of choices, you'll have the convenience of holding all your investments in one place.

Our extensive CD selection

All CDs sold through Vanguard are brokered CDs in both new and secondary issues.

Compare the features of CDs


Maturities

NEW ISSUES

1 month to 20 years

SECONDARY ISSUES

Varies


Trading

NEW ISSUES

Generally Monday through Friday from 8 a.m. to 5 p.m., Eastern time

SECONDARY ISSUES

Generally Monday through Friday from 8 a.m. to 5 p.m., Eastern time


Minimum purchase

NEW ISSUES

$10,000 with $1,000 increments thereafter

SECONDARY ISSUES

Varies by offering with $1,000 increments; commissions apply


Interest

NEW ISSUES

Simple interest paid to your money market settlement fund

SECONDARY ISSUES

Simple interest paid to your money market settlement fund


Resale

NEW ISSUES

Yes, in the secondary market

SECONDARY ISSUES

Yes, in the secondary market

Other considerations

Interest payments

Some CDs pay interest monthly, but generally, here's the timetable:

Maturities of less than 1 year: At maturity along with the principal.

Maturities greater than 1 year: Semiannually.

Interest is paid to the money market settlement fund.

Noncallable vs. callable CDs

Most CDs are noncallable, meaning the bank that issued them can't redeem the CDs before the maturity date.

If you buy a callable CD, you'll probably get a higher yield than with a noncallable CD of the same maturity.

The risk is that you might not hold the CD for the length of time you expected. If you reinvest the redeemed funds, you could do so at a lower interest rate than your original purchase.

The terms of any call provisions will be detailed when you purchase a newly issued CD.

The secondary market for CDs

Brokered CDs traded in the secondary market are often bought or sold at a price different from their new-issue price.

Sellers of a brokered CD could make a profit or incur a loss.

Variations in prevailing interest rates, credit quality of the issuing financial institution, and general economic conditions can cause the market value of brokered CDs to fluctuate.


WATCH AND LEARN

Take a closer look. Through Vanguard Brokerage Services, you can shop for CDs from banks across the country. And we make buying CDs through our website easy.

See how easy it is to place a CD trade online Stream video

Read a transcript

What's next?

Research CD offerings online and then place your order. It's easy.


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REFERENCE CONTENT

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CD (certificate of deposit)

An insured, interest-bearing deposit that requires the depositor to keep the money invested for a specific period of time or face penalties. Brokered CDs can be traded on the secondary market.

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Federal Deposit Insurance Corporation (FDIC)

An independent agency of the U.S. federal government that preserves and promotes public confidence in the U.S. financial system. One of its functions is to insure deposits in banks and thrift institutions up to a limit of $250,000.

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Brokered CD (certificate of deposit)

A CD offered by banks through brokers, such as Vanguard Brokerage. Brokered CDs can be traded on the secondary market.

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New-issue CD (certificate of deposit)

A CD offered to the public for the first time.

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Secondary-issue CD (certificate of deposit)

A CD that's bought from an intermediary, such as a broker like Vanguard Brokerage. Also known as a brokered CD.

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Simple interest

Interest calculated on the original principal amount.

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Settlement fund

A money market mutual fund that holds the money you use to buy securities, as well as the proceeds whenever you sell.

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Secondary market

A market where investors buy and sell to each other (rather than buying directly from a security's issuer). Most stock and bond trading happens on the secondary market.

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Callable security

A security that allows the issuer to repurchase or redeem it prior to its maturity date.

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Interest/Interest rate

Income you can receive by investing in bonds or cash investments. The investment's interest rate is specified when it's issued.

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Credit quality

A measure of a bond issuer's ability to repay interest and principal in a timely manner.

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Buying CDs on vanguard.com

If you want to invest in new-issue certificates of deposit—also known as CDs—consider buying them through Vanguard Brokerage instead shopping at various banks. Through Vanguard Brokerage Services®, you can shop for CDs from banks across the country, giving you a wide range of options and competitive rates. Plus, you'll have the convenience of holding all your investments, including CDs, in one account.

We make buying CDs through our website easy. Start by logging on to your account at vanguard.com and navigating to the brokerage account you want to buy a CD in. Then, click "Trade bonds or CDs" from the "Buy and sell" drop-down menu for your brokerage holdings.

On the "Find CDs and bonds" screen, you can choose from a wide range of maturities from 1 month to 10 years. The rates you see are the highest rates available for that specific maturity. Click the percentage rate un­der your desired maturity to see a list of CDs for that term. On the next screen, you'll see several CDs sorted by interest rate, with the highest rate at the top of the list.

Click the bank name or "Buy" link to see details for that CD. You'll then see a full product description including the CD's maturity, issuing bank, coupon dates, and payment frequency. For more information on CDs or the terms used on this page, click "Glossary" or "Learn more about certificates of deposit."

If you're ready to invest, click "Buy" on the upper-right side of the screen. On the "Buy order" screen, review your order information and read and agree to the terms in the shaded box. Next, enter the quantity of CDs you'd like to buy. Keep in mind that new-issue CDs are sold in $1,000 increments. Therefore, if you buy 10 CDs, you're investing $10,000, which is the Vanguard Brokerage minimum purchase for CDs.

If you're investing more than $250,000 in CDs, consider buying CDs from multiple banks. Since each bank carries FDIC insurance, you can get up to $250,000 in coverage at each bank you buy a CD from.

Click "Calculate" to update your order details. If you're ready to proceed, click "Continue." Finally, you'll see a summary of your order information on the "Review and submit" screen. It's important to ensure that all the information is correct and you've read and understand all the important information on the page before you submit your order. That's it. You've placed your order. You'll see your order number on the "Order summary" screen.

You can check on your purchase in the "Order status" area of the website. Your order is complete when it's "executed," typically within a few minutes when the market is open. You will own and pay for your CDs on the settlement date. If you need help buying a CD or building a CD ladder, just call a Vanguard Brokerage specialist at 800-669-0514. Thank you for investing with us.


Important information:
All investing is subject to risk, including the possible loss of the money you invest.

All CDs are federally insured up to $250,000 per depositor per bank. For additional details regarding coverage eligibility, visit fdic.gov External site

Vanguard Brokerage Services (VBS) has provided availability to the Alternative Trading Systems operated by Tradeweb Markets LLC ("Tradeweb") and to other content provided by Tradeweb. Tradeweb provides access to certain municipal bond information from DPC Data. Tradeweb and DPC Data are third parties and are not affiliated with VBS. While VBS provides access to Tradeweb's Alternative Trading Systems, VBS has no control over actions taken by Tradeweb.

Vanguard funds not held in a brokerage account are held by The Vanguard Group, Inc., and aren't protected by SIPC.

Brokerage assets are held by Vanguard Brokerage Services, a division of Vanguard Marketing Corporation (VMC), member FINRA and SIPC.

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See how easy it is to place a CD trade online