In this YieldAlley Guide, we will walk you through a step-by-step process on how to buy CDs on E*Trade.
All the CDs sold on E*Trade are brokered CDs. Brokered CDs are bank CDs you purchase through a brokerage, such as E*Trade. E*Trade’s CD rates and terms include 3-month, 6-month, 9-month, 1-year, 2-year, 3-year, 5-year, and 10-year terms.
How to Buy CDs on E*Trade: A Step-By-Step Guide
1. Login to your E*Trade account.
2. Navigate to the “Bonds & CD” link under either the “Trading” or “Markets & Ideas” tab.
3. Click “CDs (New Issues)” for the entire list of brokered CDs offered by E*Trade. Otherwise, click the interest rate under the CD term you are interested in.
4. Review the list of CDs.
Pay careful attention to the coupon (your annual interest rate), coupon frequency (how often your interest will get paid), and maturity (when your CD will mature). Be sure to check whether the CD is callable.
If you only want to see non-callable features, you can go to E*Trade’s Advanced Screener tool and filter for “Non-callable” CDs under the “Redemption Features & Special Provisions” section.
All the CDs on E*Trade’s platform listed FDIC membership numbers, so they all have FDIC insurance coverage.
By clicking the title of a CD, you can see additional information, such as the CUSIP number.
5. Click “Buy” when you have chosen your CD.
6. Review the details of your order.
Make sure you have reviewed the brokerage CD disclosures.
CDs bought on E*Trade’s platform are all insured by FDIC up to $250,000.
7. Preview your order before you place your order.
Congrats, you have now learned how to buy CDs on E*Trade now!
If you wish to buy a brokered CD on the secondary market on E*Trade, you can follow the same steps while filtering for “Secondary” CDs in the “Market type” drop-down menu in E*Trade’s Advanced Screener tool.
Does E*Trade Offer CDs
Yes, with an E*Trade account, users can purchase a brokered CD from hundreds of different banks nationwide. The CDs you buy on E*Trade are called brokered CDs, which are bank CDs offered by a brokerage.
E*Trade CD Rates
E*Trade CD rates and terms range from 3 months to 10 year terms. By default, the “Overview” tab in E*Trade’s “Bond & CDs” section will provide the highest E*Trade CD rates for each maturity term. You can also select average yields to be displayed instead.
You can also check the latest E*Trade CD rates here. For other brokerages, you can also check the latest CD rates for Fidelity, TD Ameritrade, E*Trade, Vanguard, Merrill Edge, and Charles Schwab.
Can I Trust E*Trade?
E*TRADE is a reputable and solid choice as an online broker for most investors. It is a reliable, full-service broker and is one of the most popular online brokers. You can find valuable calculators and tools on the website, including helpful retirement planning features.
Are E*Trade CDs FDIC Insured?
Yes, E*Trade CDs are FDIC insured. FDIC insurance protects deposits held at banks and savings associations in case of bank failures.
E*Trade brokered CDs have FDIC insurance coverage up to $250,000 per depositor, per insured bank. This means you can buy two CDs from different banks from your E*Trade brokerage account and have insurance coverage of $500,000.
Who Bought Out E*Trade?
In 2020, E*Trade was acquired by Morgan Stanley, which is one of the largest acquisitions in the brokerage industry in the last few years. This acquisition of E*Trade gave Morgan Stanley access to new sources of revenue and a broader demographic, primarily retail brokerage customers.
Are Brokered CDs a Good Idea?
A brokered CD is an excellent choice when you’re looking for fixed-interest payments but want more flexibility than a traditional CD. While there are risks, brokered CDs are considered very safe since there is FDIC coverage up to $250,000 per CD, and you earn the entire principal and interest as long as you hold the CD to maturity.
Brokered CDs offer a guaranteed return as long as they are held to maturity.
Summary of How to Buy CDs on E*Trade
E*Trade brokered CDs are a great option if you want a fixed-yield investment backed by the FDIC. E*Trade CD are very competitive, and there’s a wide variety of options with different rates and maturity terms.
If you would like most short-term access to cash, then knowing how to buy CDs on E*Trade is a good first step before you build a brokered CD ladder on E*Trade.
