TD(Toronto Dominion) Bank is currently offering a great 3 month 5.30% APY CD through TD AMERITRADE. This is a broker CD which means you can reinvest payment at maturity, but you can’t compound the itnerest and reinvest the interest back into the CD account. It’s a simple interest paid at maturity and not monthly. This CD has a high mimimum deposit requirement of $10,000 and deposit limit is the FDIC limit of $100,000. You can invest this CD as an IRA (Individual Retirement Accounts) and get a higher FDIC insurance of up to $250,000.

Because this CD is a broker CD, the penalty for early withdrawal is different from bank CD accounts. A bank CD account will usually charge you a certain month’s interest and most likely will not hurt your principle amount deposited. This CD is different because if you want it before the maturity date, they will find a secondary market buyer to buy it and thus you can actually LOSE your principle amount. Your penalty will be the spread between how much TD AMERITRADE broker sells and buys the Certificate of Deposit.

To open an account, you can go to TD AMERITRADE’s website or you can locate a branch near and open it at a branch.