What is a bond?

Certificate of Deposit (CD) interest rates are fixed from the start of the term until their maturity date.  

The interest rate on the Settlement Date can be higher or lower than the interest rate that was available at the time of account opening. Settlement Date is when funds are received and posted to your account according to our Funds Availability policy, found in section 3 of the Morgan Stanley Private Bank Deposit Account Agreement. If your Settlement Date is within 10 calendar days of the account opening, the applied interest rate will be the highest of the prevailing interest rate on the date of account opening or the date of Settlement. Maturity is determined based on the Settlement Date and the term selected. The APY is based on no withdrawal of credited interest and no redemption prior to the stated maturity date. A withdrawal will reduce earnings. See the CD Rate Table page at the etrade.com for information on term lengths, current interest rates and corresponding APYs. Certificate of Deposit rates are subject to change at any time and are not guaranteed until the CD is funded and settled.

Interest is compounded daily. Interest will compound from the Settlement Date until the last full day before the date of withdrawal using the daily balance method. Accrued interest posts to your account on a quarterly basis, unless you select at account opening to receive interest via check.

Deposits Transaction Limits: You may make a one-time deposit, via ACH, wire, or check, to fund the account within 30 calendar days of opening the account. Deposits after this window are not permitted at any time. Unless otherwise provided, partial withdrawals and additional deposits are not permitted. Interest earned on the account can be paid out via check, if you chose that option at opening, otherwise you may not withdraw interest prior to maturity. A withdrawal of interest will reduce earnings.

Withdrawals: You may make a full withdrawal, without penalty, during the grace period in the 7 calendar days immediately following maturity. If you choose to make a withdrawal before maturity, or after the 7-day grace period has ended, an Early Withdrawal penalty will be assessed (refer to “Early Withdrawal penalties” section for more detail). Partial withdrawals are not permitted at any time.

CD customers agree to keep funds on deposit for a fixed period of time. Unless otherwise provided, withdrawals outside of the grace period are not permitted. If we permit an early withdrawal from a CD, we will impose an early withdrawal penalty equals to certain number of days of simple interest determined based on the term of the CD. Simple interest is calculated on the total principal amount (partial withdrawals are not allowed) using the interest rate of your current CD, based on 365 days or 366 if the withdrawal happens in a leap year. If the penalty amount exceeds the accrued interest, the principal is also subjected to penalty. We may elect not to impose a penalty for a withdrawal of principal following the death or adjudication of incompetence of any account owner if the account was opened before such adjudication and not extended or renewed after that date.

CD rates are subject to change at any time and are not guaranteed until the CD is opened.

Unless we provide otherwise, CDs will automatically renew at maturity, at the prevailing interest rate for new CD accounts of the same term length as of the date of maturity. You will have a grace period of 7 calendar days after the maturity date to make a full redemption without penalty, which you can do by calling Customer Service at 1-800-387-2331. If you make the withdrawal outside of the grace period, we will impose an Early Withdrawal penalty. In certain circumstances, such as the death or incompetence of an Account holder, we may agree to waive the early withdrawal penalty.

Interest will be paid during the grace period at the prevailing interest rate for CD accounts of the same term length as of the maturity date. If you close the account during the grace period, interest will accrue past the maturity date through the last full day prior to the account closure. We reserve the right to change the interest rate for automatically renewable accounts at each renewal period.

If we elect not to permit the renewal of an automatically renewable time deposit, we will notify you 30 days in advance.