https://resources.bankofamerica.com/email/render-resource/897029e886b3454cae6568536769e3bb

Merrill

A brokered certificate of deposit (CD) is a fixed-income investment, issued by a bank or savings association, that typically pays periodic interest at a set rate for a specified period of time.

You can purchase brokered CDs issued by numerous banks and savings associations through your Merrill account with a minimum investment as low as $1,000. Unlike typical brokerage investment products, these brokered CDs are insured by the Federal Deposit Insurance Corporation (FDIC).

When should you consider a brokered certificate of deposit?

If you want to create a diversified portfolio, or your investment objective is to preserve your wealth or obtain a steady income stream and FDIC insurance, consider a brokered CD.

What are the benefits of a brokered certificate of deposit?

Diversify your portfolio with FDIC-insured investments • An FDIC-insured brokered CD may be ideal for both

conservative investors and investors who want to balance their portfolios with secure investments.

Secure your investment1

• Brokered CDs are insured up to a maximum of $250,000 for both principal and interest, per depositor, per FDIC-insured bank, per ownership category (such as single ownership, joint ownership, and revocable and irrevocable trust, among others).
• If you hold deposits directly with a particular institution and with that same institution through your Merrill account, those balances all count toward the insurable-deposit limit, assuming the ownership categories are the same.
• You can see any brokered CDs purchased through your Merrill account on a single statement.
• You are responsible for monitoring your own brokered CDs and other deposits at FDIC-insured institutions for maximum FDIC insurance limits.

Boost your earnings • When investing in a brokered CD, you may have the potential

to receive higher returns on the cash portion of your portfolio.

A few things to keep in mind

• The market value of a brokered CD purchased through your brokerage account will fluctuate and, at times, may show a potential market value of more or less than the price or face value of the CD. However, if you hold a brokered CD to maturity, you’ll get back your initial investment plus interest; these price fluctuations only come into play if you sell your CD before maturity.

Brokered CDs held to maturity do not auto-renew. You’ll need to purchase another CD if you desire.