Certificates of Deposit (CDs)

Description
Brokered Certificates of Deposit (CDs) are savings instruments issued by banks and savings and loans. When investing in a CD, you, in effect, lend the bank or savings and loan a set amount of money that it then invests in securities or loans. For the use of your money, you are ensured of the return of principal and interest over the life of the certificate of deposit. CDs offer a variety of maturities and interest payment options.

Objective
To provide regular income over short and intermediate periods of time.

Suitability
CDs are well suited for income-oriented investors.

Product Features

  • Regular Income - CDs offer a fixed rate of return so you know exactly how much income you will receive.
  • Liquidity - CDs can be sold on any business day at their current market value in increments of $1000. This may be the same, more, or less than the amount initially invested.
  • Death Benefit - All CDs have a death benefit feature. This feature allows surviving joint tenants or the decedent's estate to redeem a CD without penalty, should the registered owner die before the certificate matures. Special provisions may exist on trust and pension accounts.
  • Taxable - CDs are subject to federal and state taxes.
  • Early redemption - Early redemption of CDs purchased through Edward Jones is generally not available. In other words, redeeming a CD back to the bank at its face value, less an interest penalty, is not available.

For more information on CDs, please contact your local financial advisor.

CDs offered by Edward Jones are bank-issued and FDIC-insured up to $250,000 (principal and interest accrued but not yet paid) per depositor, per insured depository institution, for each account ownership category. Please visit www.fdic.gov or contact your financial advisor for additional information.

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