Have you ever considered a Certificate of Deposit (CD) as a smart way to grow your savings with predictable returns and low risk? If you're a Merrill Edge client, or thinking of becoming one, finding and investing in CDs is a straightforward process that offers access to a wide range of options. Let's dive in and explore exactly how you can find CDs on Merrill Edge, step by step!
Unlocking the Power of CDs on Merrill Edge: A Comprehensive Guide
Certificates of Deposit (CDs) are a cornerstone of a well-diversified, conservative investment portfolio. They offer a fixed interest rate for a predetermined period, providing a sense of security and a clear understanding of your future earnings. Merrill Edge, as a leading online brokerage, provides its clients with access to a vast selection of brokered CDs from numerous issuers, including Bank of America, N.A., and other unaffiliated banks.
Understanding how to navigate the Merrill Edge platform to locate these valuable investment vehicles is key. This guide will walk you through the process, ensuring you can confidently explore and select the CDs that align with your financial goals.
Step 1: Get Logged In and Ready to Explore!
The very first step, and the most crucial one, is to log in to your Merrill Edge account. Without access to your personalized dashboard, you won't be able to utilize the powerful tools Merrill Edge offers for finding CDs.
Action: Open your web browser and go to the Merrill Edge website.
Action: Locate the "Log In" button, usually found in the top right corner of the page.
Action: Enter your User ID and Password. If you've forgotten your credentials, use the "Forgot User ID" or "Forgot Password" links to recover them.
Engagement Tip: While you're logging in, take a moment to consider what your primary goal is for investing in a CD. Are you saving for a down payment, retirement, or simply looking for a secure place to park some cash? Having a clear objective will help you narrow down your choices later!
Step 2: Navigate to the Research Tab – Your Gateway to Fixed Income
Once you're successfully logged in, you'll land on your account dashboard. Merrill Edge organizes its investment options logically, and for CDs, you'll want to head to the "Research" section.
Action: Look for the navigation bar, typically located across the top of your screen.
Action: Find and click on the "Research" tab. This tab is your hub for exploring various investment products, including fixed income securities.
Sub-heading: Why the Research Tab?
The "Research" tab is designed to provide you with a comprehensive overview of different asset classes and the tools to filter and compare them. CDs fall under the umbrella of "Fixed Income" investments because they offer a fixed return over a set period.
Step 3: Access the Fixed Income Screener – Your CD Discovery Tool
Within the "Research" tab, you'll find various categories and tools. To specifically search for Certificates of Deposit, you'll need to utilize the "Fixed Income Screener." This powerful tool allows you to filter through thousands of available CDs based on your specific criteria.
Action: Once you're on the "Research" page, look for a section related to "Fixed Income" or "Bonds."
Action: Within the Fixed Income section, you should see an option for a "Screener" or "Search for Fixed Income." Click on this.
Sub-heading: Understanding the Fixed Income Screener
The Fixed Income Screener is your personalized search engine for bonds and CDs. It allows you to move beyond simply seeing what's available and instead lets you actively define what you're looking for. Think of it like an advanced filter for your investments.
Step 4: Specifying Your Search for CDs
Now that you're in the Fixed Income Screener, it's time to tell Merrill Edge exactly what kind of CD you're interested in. This is where you'll apply various filters to narrow down the vast selection.
Action: Within the Screener, look for a filter or category specifically labeled "New Issue CDs" or just "CDs." Select this option. This will ensure that your search results are limited to Certificates of Deposit.
Sub-heading: Key Filters to Utilize
To refine your CD search effectively, consider applying these filters:
Maturity Date/Term Length: This is perhaps the most important filter. CDs come with various terms, from a few months to several years (e.g., 3 months, 6 months, 1 year, 2 years, 5 years, etc.). Choose a term that aligns with your financial timeline.
Short-term CDs (e.g., 3-12 months) offer more liquidity but typically lower yields.
Longer-term CDs (e.g., 3-5+ years) usually offer higher yields but lock up your money for a longer period.
Yield/APY (Annual Percentage Yield): This indicates the interest rate you'll earn. You can often set a minimum yield you're looking for.
Issuer: While Merrill Edge provides access to many issuers, you might have a preference for certain banks.
Callability: Some CDs are "callable," meaning the issuer can redeem them before their maturity date. Non-callable CDs guarantee your principal and interest for the full term. Callable CDs may offer a slightly higher yield to compensate for this risk.
Minimum Investment: CDs often have a minimum investment amount (e.g., $1,000). Ensure the CDs you're viewing meet your investment budget.
Coupon Frequency: This refers to how often interest payments are made (e.g., monthly, quarterly, semi-annually, annually, or at maturity).
Action: Apply the filters that are most important to you based on your investment goals. Don't be afraid to experiment with different combinations to see a wider range of options.
Step 5: Reviewing Your Search Results
Once you've applied your filters, Merrill Edge will present you with a list of CDs that match your criteria. This is where you'll start to analyze the details of each offering.
Action: Carefully review the list of CDs displayed.
Action: Pay close attention to the following for each CD:
Yield/APY: Is the interest rate competitive?
Maturity Date: Does the term fit your timeline?
Issuer: Is it a reputable institution?
Minimum Investment: Can you meet the requirement?
Callability: Is it callable or non-callable?
FDIC Insurance: Confirm that the CD is FDIC-insured up to applicable limits ($250,000 per depositor, per insured bank, for each account ownership category). This is a crucial safety net for your principal.
Sub-heading: Delving into CD Details
Clicking on individual CDs in the search results will often provide a more detailed breakdown. This may include:
CUSIP Number: A unique identification number for the security.
Trade Confirmation Information: What you can expect to see on your confirmation after purchase.
Interest Payment Schedule: Exact dates for interest payouts.
Early Withdrawal Penalties (for traditional bank CDs): While brokered CDs can be sold on the secondary market, it's important to understand potential implications if you need to liquidate early.
Step 6: Making Your Selection and Placing an Order
Once you've identified a CD that meets your needs and preferences, the final step is to proceed with the purchase.
Action: Select the CD(s) you wish to purchase from the search results.
Action: Follow the prompts to enter the desired quantity (typically in increments of $1,000).
Action: Review the order details carefully before submitting. Double-check the maturity date, yield, and total investment amount.
Action: Confirm your order.
Sub-heading: Understanding the Brokered CD Difference
It's important to remember that CDs purchased through Merrill Edge are typically brokered CDs. This means they are offered by various banks but held within your Merrill Edge brokerage account. Key differences from traditional bank CDs include:
Secondary Market Liquidity: Brokered CDs may be sold on the secondary market before maturity, though a market is not guaranteed, and the price can fluctuate based on interest rate changes.
No Early Withdrawal Penalties (Directly): Instead of a penalty, if you sell a brokered CD before maturity, you'll receive the market value, which could be more or less than your original principal.
Access to Multiple Issuers: Merrill Edge gives you access to a wider array of banks and their CD offerings than you might find at a single bank.
Step 7: Monitoring Your CD Investments
After your purchase, your CD will appear in your Merrill Edge account holdings. It's a good practice to periodically review your investments.
Action: Navigate to your account "Holdings" or "Portfolio" section.
Action: You'll see your CD listed along with its details, including accrued interest and maturity date.
Action: Merrill Edge will also provide periodic account statements and trade confirmations, which you should retain for your records.
Step 8: Planning for Maturity
When your CD approaches its maturity date, you'll generally receive a notification from Merrill Edge. At this point, you'll have a few options:
Reinvest: You can choose to reinvest the principal and interest into a new CD. This is a common strategy, especially when building a CD ladder.
Withdraw: You can have the principal and interest credited to your Merrill Edge cash account or linked bank account.
Roll Over (if applicable): Some CDs may offer an "auto-roll" feature, where they automatically renew into a new CD of the same term (unless you opt out). Be sure to check if this is the case and if it aligns with your intentions.
FAQs: How to Find CDs on Merrill Edge
How to find the highest CD rates on Merrill Edge?
Utilize the "Fixed Income Screener" under the "Research" tab and sort the results by "Yield" (APY) in descending order to see the highest rates currently available.
How to filter CDs by maturity date on Merrill Edge?
Within the Fixed Income Screener, there will be a filter option for "Maturity Date" or "Term Length" where you can specify your desired range (e.g., 1 year, 2 years, etc.).
How to identify FDIC-insured CDs on Merrill Edge?
Merrill Edge primarily offers brokered CDs which are FDIC-insured up to the applicable limits per issuer. This information is typically highlighted in the CD's details. Always verify the FDIC insurance status.
How to tell if a CD is callable on Merrill Edge?
In the Fixed Income Screener, look for a filter or a column in the results that indicates "Callable" or "Non-Callable." Details within the individual CD listing will also specify this.
How to search for new issue CDs on Merrill Edge?
The Fixed Income Screener usually has a specific category or filter for "New Issue CDs," which focuses on CDs recently offered in the primary market.
How to build a CD ladder using Merrill Edge?
To build a CD ladder, purchase multiple CDs with staggered maturity dates (e.g., a 1-year, 2-year, and 3-year CD). As each CD matures, reinvest the proceeds into a new CD with the longest term in your ladder. Repeat this process as each CD matures. You can find varying maturity dates using the screener.
How to sell a CD before maturity on Merrill Edge?
Brokered CDs can be sold on the secondary market through your Merrill Edge account. Navigate to the "Trade" section and select "Fixed Income." You'll typically need the CUSIP number to initiate a sell order. Be aware that the market value may be more or less than your original principal.
How to view accrued interest on my Merrill Edge CD?
Accrued interest will be reflected in your account statements and often within your "Holdings" or "Portfolio" view on the Merrill Edge platform.
How to get help with CD investments on Merrill Edge?
Merrill Edge offers customer support via phone or chat. You can also schedule an appointment with a Merrill financial advisor for personalized guidance. Their contact information is typically found in the "Help" or "Contact Us" section of the website.
How to understand the fees associated with Merrill Edge CDs?
While Merrill Edge offers unlimited $0 online stock, ETF, and option trades, there may be certain fees associated with brokered CDs. These typically involve a mark-up or mark-down in secondary market transactions. Check the Merrill Edge pricing guide or the individual CD's prospectus for detailed fee information.
