As the Federal Reserve has raised its short-term interest rates in recent years, one of the investment products reacting to rate changes is the Certificate of Deposit (CD).
Join Fidelity Fixed Income professionals Patrick Deignan and Richard Carter to learn about brokered CDs which can be easily purchased in your brokerage account while still providing the same benefits and limitations of FDIC insurance offered by traditional bank CDs. Our presenters will demonstrate how you can invest in CDs through Fidelity's Model CD Ladder and the how to make use of the AutoRoll automatic reinvestment feature. FDIC insurance applies to new-issue CDs only.
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Any fixed income security sold or redeemed prior to maturity may be subject to a substantial gain or loss. Your ability to sell a CD on the secondary market is subject to market conditions. If your CD has a step rate, the interest rate may be higher or lower than prevailing market rates. The initial rate on a step-rate CD is not the yield to maturity. If your CD has a call provision, which many step-rate CDs do, the decision to call the CD is at the issuer's sole discretion. Also, if the issuer calls the CD, you may obtain a less favorable interest rate upon reinvestment your funds. Fidelity makes no judgment as to the creditworthiness of the issuing institution.
For the purposes of FDIC insurance coverage limits, all depository assets of the account holder at the institution issuing the CD will generally be counted toward the aggregate limit (usually $250,000) for each applicable category of account. FDIC insurance does not cover market losses. All the new-issue brokered CDs Fidelity offers are FDIC insured. In some cases, CDs may be purchased on the secondary market at a price that reflects a premium to their principal value. This premium is ineligible for FDIC insurance. For details on FDIC insurance limits, visit FDIC.gov.
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