CD Trading

Investment Minimum 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 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 two 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 there is a limited quantity 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 to our customers.

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.

AHighly likely


CFairly likely but susceptible to adverse change

DRelatively weak

ELikely to have financial problems

NBNew institution, less than three years old, not rated

NTNew savings & loan, less than three years old, not rated

NRAtypical 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 (Committee on Uniform Securities Identification) 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 greater. The trade will show in the account, but the money will not be debited until settlement date. Please make sure cash is in the account to cover the trade on settlement date. Funds reserved for 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. Click on the "My Account" tab at the top of the page.
2. Click on "Order Status" down the left hand column of the page.
3. Click on "CDs & Bonds" tab.
4. Select "Certificate of Deposit" from the drop-down menu under Choose a Product.

The information and content provided in the Scottrade® Knowledge Center is for informational and/or educational purposes only. The information presented or discussed is not, and should not be considered, a recommendation or an offer of, or solicitation of an offer by, Scottrade or its affiliates to buy, sell or hold any security or other financial product or an endorsement or affirmation of any specific investment strategy. You are fully responsible for your investment decisions. Your choice to engage in a particular investment or investment strategy should be based solely on your own research and evaluation of the risks involved, your financial circumstances and your investment objectives. Scottrade, Inc. and its affiliates are not offering or providing, and will not offer or provide, any advice, opinion or recommendation of the suitability, value or profitability of any particular investment or investment strategy.