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Learn more about the different types of risks associated with fixed income securities.
The types of CDs available through TD AMERITRADE are called brokered CDs. They are similar to CDs purchased directly from a bank, except they can be traded on the open market. These CDs are usually issued in large denominations and then divided into smaller denominations by brokerage firms for re-sale to their customers. Brokered Certificates of Deposits that you choose to sell prior to maturity in a secondary market may result in loss of principal due to fluctuation of interest rates, lack of liquidity, or transaction costs. The Federal Deposit Insurance Corporation (FDIC) insures CDs for principal and accrued interest up to $250,000 for non-retirement accounts (under the new legislation, effective October 3, 2008, through December 31, 2013), $250,000 for Individual Retirement Accounts ("IRAs") and certain other retirement accounts. Included in this coverage is any other amount you may have on deposit with the bank or institution that issued the CD. Please make sure you know the extent of your FDIC coverage and that you monitor your entire deposit with the issuer to ensure it does not exceed the coverage limit Under the FDIC's rules, up to $250,000 in deposit insurance will be provided for the money a consumer has in a variety of retirement accounts, primarily traditional and Roth IRAs (Individual Retirement Accounts), at one insured institution. Also included are self-directed Keogh accounts, "457 Plan" accounts for state government employees, and employer-sponsored "defined contribution plan" accounts that are self-directed, which are primarily 401(k) accounts. In general, self-directed means the consumer chooses how and where the money is deposited. Fixed Income descriptive data provided by FT Interactive Data . For more information, interested parties can email info@ftid.com. Knight BondPoint Query System copyright © 2008 Knight BondPoint Inc., All rights reserved. |