In determining the applicable insurance limits, the FDIC aggregates accounts held at the issuer, including those held through different broker-dealers or other intermediaries. As of July 21, 2010, all CDs are federally insured up to $250,000 per depositor, per bank. The original face amount of the purchase is not guaranteed if the position is sold prior to maturity. Vanguard Brokerage does not make a market in brokered CDs. Any CD sold prior to maturity may be subject to a substantial gain or loss. CDs may be sold on the secondary market, which may be limited, prior to maturity subject to market conditions. There may be other material differences between products that must be considered prior to investing.Īll brokered CDs may fluctuate in value between purchase date and maturity date. Investments in bonds are subject to interest rate, credit, and inflation risk. Bonds are subject to the risk that an issuer will fail to make payments on time and that bond prices will decline because of rising interest rates or negative perceptions of an issuer's ability to make payments.
Diversification does not ensure a profit or protect against a loss. Bank deposits and CDs are guaranteed (within limits) as to principal and interest by an agency of the federal government.Īll investing is subject to risk, including the possible loss of the money you invest.
