Certificate of Deposit Accounts

Certificates of Deposit (CDs) are debt instruments issued by commercial banks and savings and loan institutions. When you invest in a CD, you loan the bank a set amount of money. For the use of your money, you are promised the return of your principal plus interest over the life of the CD.

On or after April 27, 2017, Scottrade Bank no longer opens or renews CDs. CD accounts maturing April 27, 2017, or later, will experience a final maturity. Funds from those CDs will be transferred to a corresponding Scottrade Bank deposit account in the owner’s name, transferred to an affiliated Scottrade brokerage account if possible, or sent by check to the owner’s address of record.

Interest Rates

For Scottrade Bank CDs:

  • Interest will be credited to your account on the last calendar day of the month.
  • Interest is calculated on the basis of the actual number of days elapsed over a 365/366-day year.
  • Interest in accrued daily and paid monthly.

Understanding CD Maturity

A CD's life is called the CD's term. If you purchased a CD from Scottrade Bank, you chose a term between 30 days and 10 years. The end of the CD's term is called the CD maturity date and, at the maturity date, your CD will experience final maturity. Scottrade Bank will send you an electronic notification 10 days before your CD reaches maturity. Funds from maturing CDs will be transferred to a corresponding Scottrade Bank deposit account in the owner’s name, transferred to an affiliated Scottrade brokerage account if possible, or sent by check to the owner’s address of record.

Early Withdrawal* Penalty

If you choose to withdraw from your CD agreement before the CD reaches maturity, an early withdrawal penalty is assessed to your account based on the following:

  • We may impose a penalty of 7 days interest, on the amount withdrawn subject to penalty, if the withdrawal is made within the first six days after the deposit. In certain circumstances such as the death or incompetence of an owner of this account, the law permits, or in some cases requires, the waiver of the early withdrawal penalty.
*

Early withdrawals are subject to penalties.  Fees could reduce earnings.