Overview | Process | FDIC Coverage | Fixed Rate, Fixed Term CD Features | ID Requirements | Fees
Fixed Rate, Fixed Term CDs are issued by FDIC insured banks and are purchased at the FISN Division of Landolt Securities, Inc. a brokerage firm. FDIC insured banks use brokerage firms to distribute their CDs nationwide. The FISN Division has access to inventory of CDs from most major Wall Street firms and CD issuers. Investors can then select the CDs that meet their needs for yield and return of principal through FDIC insurance. All CDs are held in a brokerage account. The banks do not issue physical certificates
Investors open a standard brokerage account at the FISN Division of Landolt Securities, Inc. Accounts are held at National Financial Services LLC., which provides Clearing, Custody and Safekeeping services for Landolt Securities. A brokerage account may hold many different CDs. It is not necessary to open a new account for each CD purchase. If you already have an FISN brokerage account, you may purchase your CDs immediately. If you have opened a new account you need to fund the account by sending a fed funds wire or a check. Once funds have been received, you may begin purchasing securities.
The FISN Division of Landolt Securities, Inc. sends new account paperwork and any additional brokerage forms to the customer or they may be downloaded from our Form page. Paperwork is returned to the FISN Division of Landolt Securities, Inc. along with the required identification. See ID requirements below.
Confirmation of each securities trade and account statements are sent for each account to the investor from National Financial Services LLC on behalf of the FISN division of Landolt Securities
CDs are purchased in amounts starting at $25,000. No more than the $250,000 insurance limit per ownership category should be invested in any one bank at the same time to insure coverage of both principal and interest. There is no limit on the number of banks the can be purchased per brokerage account and accounts can be opened for other ownership categories such as joint or trust accounts. FDIC coverage for retirement accounts is $250,000 per bank and is separate from any FDIC insured accounts the owner may have with that bank. FISN can work with you to spread your funds over multiple FDIC insured banks and over multiple brokerage accounts (if you qualify) to keep your funds within insured limits.
FIXED RATE, FIXED TERM CD FEATURES
This is a standard FDIC insured CD. It is held in a brokerage account and pays interest at a fixed rate over the life of the CD. The interest is paid on a peiodic (usually semi-annual or monthly) basis into the brokerage account where it can continue to earn interest in a money market fund account. There are no call provisions. The rate is fixed up-front and cannot change. The term is fixed up-front with a certain maturity date that cannot change. Key information is the name of the bank, the issue date and the maturity date.
Interest paid into the brokerage account can be disbursed via checks or electronic funds transmission straight to your local bank. You also can set up a payment schedule called a "Custom Payment/Earning Plan. The form is available on the Forms page. Available cash also can be withdrawn from the account via checks, automatic teller machines or debit card. There may be fees for accounts with ATM or debit cards.
CDs are held in a Brokerage accounts at the FISN Division of Landolt Securities, Inc. Securities in Landolt Securities accounts are carried by National Financial Services LLC, Member NYSE/SIPC, a Fidelity Investments company which provides Clearing Custody and Safekeeping services.
The FISN Division of Landolt Securities, Inc. is required under the Patriot Act to verify the identity of individuals and entities. Individuals are required to provide a copy of a current government issued, photo identification. Business accounts, trusts and other non-individual accounts have special requirements. Ask your FISN Representative what documents will be required to open up a particular type of account.
Please note that some banks exclude residents of certain states from the purchase of their CDs. Your Representative may need to inquire about your state of residence
There are no placement fees or commissions for the purchase of a CD. The issuing banks pay brokers to distribute their CDs nationwide. New issue CDs are sold at par or a price of 100.00 for each $ 100.00 of the CD. Par is the face amount of the CD on which interest is earned. Some CDs may require minimum purchase amounts. Your Representative may need to inquire about how much you wish to invest.