Investment Products

Brokered certificates of deposit

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

What are CDs?

Short-term goals

Earn income while saving for short-term goals like paying for a wedding or buying a new car.

Low risk

Park cash you don’t plan to use right away in a low-risk investment while avoiding high market risk.

Higher yields

Get potentially higher yields than you would with some bank accounts and money market funds.


Protect your initial investment amount with a government-backed option.

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

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

Maturity term 1-3
2 years 3 years 4 years 5 years 7 years 10+ years
Yield table results indicate the highest yield to worst for a given security's maturity and rating.

As of [Date] [Time], [Time Zone]

Maturity term Yield
help Yield table results indicate the highest yield to worst for a given security's maturity and rating.
1-3 months
4-6 months
7-9 months
10-12 months
13-18 months
2 years
3 years
4 years
5 years
7 years
10+ years

As of [Date] [Time], [Time Zone]

Understand the minimums and fees

We offer 2 ways to buy brokered CDs through our platform:

New issues are purchased directly from banks.

Investment minimum: $1,000, with additional purchases in increments of $1,000

Fee: $0

Secondary trades are transactions with another market participant, not the issuing company or agency. It's similar to buying a used car. When you sell a security, you get the proceeds. But if you buy one, the proceeds go to the seller.

Investment minimum: $1,000, with additional purchases in increments of $1,000

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

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

Want to explore cash alternatives?

Not sure how to buy a brokered CD?

When does a brokered CD pay interest?

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.

What happens when my brokered CD matures?

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.

Want to learn more?

Investing on your own?

Check out key information you can use as you begin your DIY investing journey.

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Other investment products

We have a variety of products to select from. See which best fits your needs.

What are cash investments?

What are cash investments?
Cash investments can lower the overall risk of your portfolio and give you a place to hold money while you wait to invest it.

Are you getting the best possible returns on your short-term savings?

Are you getting the best possible returns on your short-term savings?
Learn how Vanguard can help you take advantage of today's high interest rate environment.

Get to know your investment costs

Get to know your investment costs
All investments have costs. But how much you pay for your investments—and to whom—is up to you.

Frequently asked questions

Yes. If you stay invested until term maturity, you won't lose your principal. But if you look to get out early, you could lose money.

Brokered CDs don't have early withdrawal penalties like bank CDs. To get out of a brokered CD early, you have to sell it. Brokered CDs' values can change based on the interest rate environment. So if your brokered CD has decreased in value when you go to sell it, you will lose money. 

Vanguard Brokerage offers brokered CDs, which are issued by banks for customers of investment and brokerage firms. Brokered 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.

Vanguard Brokerage sells brokered CDs only. Individual banks may offer CDs, but they're not brokered CDs. If the CD isn't a brokered CD, Vanguard Brokerage can't purchase or hold the security. At Vanguard Brokerage, brokered CDs are bought and sold through a dealer network, which has over 100 dealers nationwide. 

Callable refers to the right of an issuing bank offering a brokered CD through Vanguard Brokerage to terminate the CD on a date prior to maturity. If the brokered CD is called, you'll receive your principal plus any accrued interest from the settlement date up to, but not including, the call date. For a noncallable brokered CD, if you hold it until term maturity you'll receive your full principal plus any accrued interest from the settlement date up to but not including the maturity date. 

Your brokered CD generates simple interest based on the payment frequency of the issuing bank. Once the interest is earned it goes directly into your settlement fund in the account in which you purchased the brokered CD.

Brokered CDs start accruing interest on the settlement date. That's the date on which the money from your settlement fund is sent to the issuing bank to complete your purchase.

Yes. The minimum dollar amount to purchase a brokered CD is $1,000, and you can purchase them in $1,000 increments. Vanguard Brokerage does not charge a commission for brokered CDs purchased on the primary market, although it may receive a concession from the issuer. Commissions will be charged for transactions on the secondary market. Sales of existing CD positions are commission-free. 

See our fees & commissions

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.

There may be other material differences between products that must be considered prior to investing.

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 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.

Review our partial call allocation procedures

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

Additional information is available at

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

Securities in your brokerage account are held in custody by Vanguard Brokerage Services, a division of Vanguard Marketing Corporation. Vanguard Marketing Corporation is a member of the Securities Investor Protection Corporation (SIPC), which protects securities customers of its members up to $500,000 (including $250,000 for claims for cash). Explanatory brochure available upon request or at

VBS maintains additional coverage through an insurer. Account protection, either under SIPC or the additional insurance maintained by VBS, does not cover fluctuations in the market value of the investments in your account. 

Vanguard's advice services are provided by Vanguard Advisers, Inc. ("VAI"), a registered investment advisor, or by Vanguard National Trust Company ("VNTC"), a federally chartered, limited-purpose trust company.