Certificates of Deposit (CD)

Certificates of deposit are a deposit of funds in a financial institution for a predetermined term that earn interest at a specified rate or rate formula. CDs may be secured or unsecured and may have fixed or floating rates. CDs may be issued in either physical or DTC-eligible form and in either physical or book-entry form.


What are DTC-eligible CDs?

DTC-eligible CDs are time deposits issued by Federal Deposit Insurance Corporation (FDIC)-insured financial institutions and are underwritten by Financial Industry Regulatory Authority (FINRA)-registered broker-dealers. Also known as “brokered deposits,” this type of deposit is offered to investors by issuing institutions looking to raise liquidity and funding through the wholesale and institutional markets.

Unlike traditional CDs, and similar to other securities, DTC-eligible CDs are issued in book entry form and use the CUSIP system for identification and trading in a primary and secondary market.

Similar to traditional CDs and other fixed-income products offered by Multi-Bank Securities, Inc. (MBS), DTC-eligible CDs are often considered a preferred investment alternative for clients concerned about the safety of their principal and the continuity or predictability of cash flows.

Improve your portfolio by...

  • Increasing Yield
  • Diversifying Your Investments
  • Maintaining Safety
  • Increasing Your FDIC Insurance Coverage
  • Eliminating Placement Fees

Who is the DTC?

The Depository Trust Company (DTC) is the world's largest securities depository. Owned by its members in the financial industry, the DTC is a registered clearing agency with the U.S. Securities and Exchange Commission (SEC), a member of the Federal Reserve System and a limited purpose trust company under New York Banking Law.

What are Physical CDs?

Physical CDs are time deposits or certificates of deposit safekept at a depository held in the name of the investing entity. A copy of the CD and the new account documents are physically delivered to the institutional investor at the time the funds are transferred. All required information by the issuer is sent, received and signed by the investing entity, and interest payments are distributed to the owner of record. Multi-Bank Securities, Inc. offers both “fee-based” and “no-fee” physical CD rates.

Physical CDs can be either direct or custodial in nature. Investors send funds either directly to the issuing institution or they send funds to a designated third-party "custodian" - usually another bank. Physical CDs are available as several types, including as fixed-rate CDs and as step-up and step-down CDs.


On July 21, 2010, President Barack Obama signed the Dodd-Frank Wall Street Reform and Consumer Protection Act, which, in part, permanently raises the current standard maximum deposit insurance amount to $250,000. The FDIC insurance coverage limit applies per depositor, per insured depository institution for each account ownership category.

Multi-Bank Securities, Inc. (MBS) underwrites and offers DTC-eligible CDs issued by “well-capitalized,” FDIC-insured financial institutions. Similar to traditional certificates of deposit, the FDIC insures your investment in a DTC-eligible CD for up to $250,000 in principal and accrued interest, per institution.

FDIC-insured CDs are backed by the full faith and credit of the United States.


DTC-eligible CDs can offer a greater equivalent return than comparable U.S. Treasuries, agencies, corporate bonds and your local savings, money market or CD rates. A DTC-eligible CD's master certificate varies in principal, from $500,000 to more than $50 million. As a result, our MBS underwriters are typically able to negotiate competitive jumbo CD rates because of their overall principal commitment. When purchasing a DTC-eligible CD, you are able to take advantage of our buying power and remain insured by purchasing individual pieces of the master certificate.


DTC-eligible CDs are offered with numerous terms and structures to meet your investment needs. Please contact your MBS account representative to learn which of the following structures might be right for you.

  • Bullets (Fixed-Rate and Term)
  • Callable CDs
  • Variable Rate and Step-Up CDs
  • Zero Coupon CDs
  • Indexed Linked CDs
  • Terms Range from 90 Days to 30 Years

No Placement Fees

Similar to other securities, DTC-eligible CDs are purchased with NO placement fees. These CDs are traded at par in the primary market and priced at a premium, at a discount or at par in the secondary market. You will not be required to account for a placement fee or be required to subscribe to a posting service to buy or view top rates and new issuers.

Efficiency and Convenience

Once you have set up an account with Multi-Bank Securities, Inc., no signature cards, applications, W-9 Forms, Corporate Resolutions, Social Security numbers or physical certificates are required to be filled out, signed or returned prior to the purchase, sale or maturity of each negotiable CD transaction.1

All interest and principal payments are wired into your securities account, and are payable to you by ACH, check or wire, with NO wire or transaction fee.

Secondary Market

Although not obligated to do so, MBS does participate in maintaining a secondary market for DTC-eligible CDs. Secondary CDs are bid at a discount, at a premium or at par depending on variables, including prevailing interest rates, term to maturity or call date, principal amount and credit quality of the issuing institutions.

1 - Participating investors are required by FINRA to open a broker-dealer securities account with MBS in order to trade.