CD Trading

Certificates of deposit (CDs) trade in denominations from $1,000 up to $100,000. The minimum investment amount at Scottrade is $5,000. CDs can be purchased in increments of $1,000 after the minimum purchase.

All CDs offered are book entry only, meaning no certificates will be issued. All CDs are registered with the Depository Trust Company (DTC).


At Scottrade, CDs will not be automatically renewed or rolled over, and interest on the CD will not continue to accrue after maturity. Interest will be credited to your account on the payment date or the next business day. Interest is calculated on the basis of the actual number of days elapsed over a 365-day year. CDs pay out simple interest and interest does not compound. On the maturity date, the principal amount will be credited to the account.

Jumbo CDs are CDs with a $100,000 investment minimum and are offered by individual banks but not as brokered CDs. CD rates are the same for brokered CDs regardless of the amount of money invested.

Brokered CDs

Brokered CDs are CDs issued by banks that are made available to the customers of a broker/dealer or brokerage like Scottrade. The CDs are not registered with the Securities and Exchange Commission. Brokered CDs are obligations of the bank, not the broker/dealer. Brokered CDs generally have all the features of CDs available directly from banks and are eligible for the same FDIC insurance.

Purchasing brokered CDs through Scottrade provides the potential for higher yield in 2 ways. With the ability to survey a wide range of issues, you can choose the highest rate available. Through access to a variety of payment structures, your income needs may be matched to the optimal type of CD for you.

CD Listings

At Scottrade, the best rates offered by banks across the U.S. are posted for each common maturity date. The lists are updated several times a day. CDs do sell out as a limited quantity is issued. They can also be closed out by the underwriter prior to trade date.

New CDs generally are offered every Monday and are often sold out by Friday.

CD Fees

There are no fees to purchase any CD at Scottrade. The underwriting bank pays Scottrade a fee for offering the CDs.

There is no bank penalty for early withdrawal of your CD; however, the CD will be offered for sale on the secondary market and will be subject to market risk. The price you receive will depend on current market conditions and may be higher or lower than the original purchase price.

Kroll Ratings

For primary and secondary certificates of deposit (CDs) offered at Scottrade, you can review the financial strength rating assigned to each CD by the Kroll Bond Rating Agency (KBRA). A financial strength rating is a credit measurement used to assess the financial health of an institution and that institution's ability to meet any credit obligations. As an investor, you can use a CD's credit rating to make informed decisions about the potential risk associated with owning a CD from the rated institution.

In the financial strength rating scale outlined below, each rating is representative of the issuing institution's ability to meet its credit obligations under severe economic, financial and business conditions.

A: Highly likely

B: Likely

C: Fairly likely but susceptible to adverse change

D: Relatively weak

E: Likely to have financial problems

NB: New institution, less than three years old, not rated

NT: New savings & loan, less than three years old, not rated

NR: An atypical bank, bank holding company, savings & loan, or an institution missing key financial data necessary for rating

With a rating of A through C, you may see plus (+) or minus (-) modifiers following the letter rating. In those cases, the modifiers are used to indicate an increased or decreased risk level within the rating category.

Account Positions & Settlement

Certificates of deposit are purchased by Scottrade's Fixed Income Trading Desk. If the CUSIP is known, the CD will be posted to the account on the trade date. In the event a newly issued CD has not yet received a CUSIP, the trade will not be posted to the account until the CUSIP is known.

Settlement may take up to a week or longer. The trade will show in the account, but the money will not be debited until the settlement date. Please make sure cash is in the account to cover the trade on the settlement date. Funds reserved for the settlement date on a CD trade will continue to earn interest at the prevailing Scottrade® rate.

CD Order Status

To check the status of a CD order, follow the steps below from your Scottrade® account:

  1. Hover over Trade at the top of the page.
  2. Click CDs & Bonds under the Order Status heading.
  3. Select CD from the drop-down menu under Bond Type.