Safety
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.
Yield
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.
Diversity
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.