Investment products

Brokered CDs

As part of an overall cash investment strategy, brokered CDs (certificates of deposits) often offer a set interest rate with FDIC coverage that may be subject to limits.

Investment products

Brokered CDs

As part of an overall cash investment strategy, brokered CDs (certificates of deposits) often offer a set interest rate with FDIC coverage that may be subject to limits.

We offer a variety of FDIC-insured brokered CDs with different maturity terms and rates. Find the right one for you.

What are CDs?

We offer brokered CDs, which are issued by banks for customers of investment and brokerage firms. CDs are bank deposits that offer an interest rate for a certain period of time. The issuing bank agrees to return your money on a specific date.

Learn more from our video series:

What are CDs?

We offer brokered CDs, which are issued by banks for customers of investment and brokerage firms. CDs are bank deposits that offer an interest rate for a certain period of time. The issuing bank agrees to return your money on a specific date.

Learn more:

Know the benefits

You may want to consider brokered CDs if you:

  • Have a short-term investing goal, like buying a house
  • Are looking for a low-risk place to park cash you don’t plan to use right away
  • Want higher yields than you’d get with bank accounts and money market funds
  • Are interested in a government-backed investment option

Why Vanguard?

You don’t need to open accounts at different banks to invest in a variety of CDs. Through Vanguard Brokerage, you can purchase and hold brokered CDs from multiple banks in a single account. In addition to convenience, this lets you increase your FDIC coverage beyond the $250,000 maximum at an individual bank. You’ll have FDIC coverage for $250,000 in brokered CD purchases from each bank that sells you brokered CDs through Vanguard Brokerage. 

Understand the minimums and fees

We offer two ways to buy brokered CDs through our platform:

  • New issues are purchased directly from banks. 
  • Secondary trades are purchased from other people who are selling their brokered CDs.

Note: Vanguard Brokerage charges an additional $25 broker-assisted fee for secondary trades placed over the phone.

See the commission & fee schedules for exclusions

Minimum investment amount

$1,000, with additional purchases in increments of $1,000.

New issues

$0

Secondary trades

$1 transaction fee per $1,000 CD ($250 maximum)


Ready to invest in a brokered CD?

New to Vanguard or looking to consolidate your savings? 
 


Already a Vanguard client? Log in and get started.
 


Ready to invest in a brokered CD?

New to Vanguard or looking to consolidate your savings? 
 

Already a Vanguard client? Log in and get started.
 

Common questions about brokered CDs

The issuing bank determines when it will pay interest on the brokered CD. Generally, interest is paid at maturities of one year or less. Sometimes banks pay interest monthly. For maturities beyond one year, banks may pay interest semiannually, quarterly, or monthly. To see the payment schedule, select the issuing bank and review the description.

Your principal and interest go into your settlement fund and become available as cash. The brokered CD will no longer appear in your accounts as a holding. 

We ensure that any brokered CD we offer passes a credit-quality test and is FDIC-insured. 

Learn more about brokered CDs

Disclosures 

*For new-issue agency and corporate bonds, we may receive a fee concession. Trading limits and minimum investments may apply. See the Vanguard Brokerage Services commission and fee schedules for full details.

Bank deposits and CDs are guaranteed (within limits) as to principal and interest by an agency of the federal government.

All investing is subject to risk, including the possible loss of the money you invest. Diversification does not ensure a profit or protect against a loss. Bonds are subject to the risk that an issuer will fail to make payments on time and that bond prices will decline because of rising interest rates or negative perceptions of an issuer's ability to make payments. Investments in bonds are subject to interest rate, credit, and inflation risk.

All brokered CDs may fluctuate in value between purchase date and maturity date. CDs may be sold on the secondary market, which may be limited, prior to maturity subject to market conditions. Any CD sold prior to maturity may be subject to a substantial gain or loss. Vanguard Brokerage does not make a market in brokered CDs. The original face amount of the purchase is not guaranteed if the position is sold prior to maturity. CDs are subject to availability. As of July 21, 2010, all CDs are federally insured up to $250,000 per depositor, per bank. In determining the applicable insurance limits, the FDIC aggregates accounts held at the issuer, including those held through different broker-dealers or other intermediaries. For additional details regarding coverage eligibility, visit fdic.gov. Vanguard Brokerage imposes a $1,000 minimum for CDs purchased through Vanguard Brokerage. Yields are calculated as simple interest, not compounded. Brokered CDs do not need to be held to maturity, charge no penalties for redemption, and have limited liquidity in a secondary market. If a CD has a step rate, the interest rate of the CD may be higher or lower than prevailing market rates. Step-rate CDs are subject to secondary-market risk and often will include a call provision by the issuer that would subject the investor to reinvestment risk. The initial rate of a step-rate CD cannot be used to calculate the yield to maturity. If a CD has a call provision, the issuer has sole discretion whether to call the CD. If an issuer calls a CD, there is a risk to the investor that the investor will be forced to reinvest at a less favorable interest rate. Vanguard Brokerage makes no judgment as to the creditworthiness of the issuing institution and does not recommend or endorse CDs in any way.

For additional information with respect to CDs, see the Certificate of Deposit Disclosure Statement 

Additional information is available at fdic.gov

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.

All content with the exception of new-issue municipal content is provided by Tradeweb and DPC DATA. VBS is not responsible for the accuracy of this data. New-issue municipal content on the Tradeweb pages is provided by VBS. Tradeweb disclaimer.