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Certificates of Deposit

Aug. 30, 2004

Investors who are searching for relatively low-risk investments that can be easily converted into cash often invest in certificates of deposits (CDs). CDs typically pay higher interest than regular savings accounts. Although investors have traditionally purchased CDs through banks and thrift institutions, brokerage firms also offer CDs. Like other investments, CDs have become more complicated.

To understand how CDs work and what you need to know before you consider purchasing a CD, read our publication, Certificates of Deposit: Tips for Investors. If you've experienced a problem with a CD you purchased through a broker, follow these steps to file a complaint.

The Office of Investor Education and Advocacy has provided this information as a service to investors.  It is neither a legal interpretation nor a statement of SEC policy.  If you have questions concerning the meaning or application of a particular law or rule, please consult with an attorney who specializes in securities law.

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