Frequently asked questions

A Bank CD, or Certificate of Deposit, is a type of account that holds a fixed amount of money for a set period of time, such as six months, one year, or five years. In return, you receive a fixed rate of interest.² With a Bank CD, you know in advance exactly how much you will earn and when. CDs typically offer higher interest rates than regular savings accounts, but require you to keep your money in the account for the entire term. Withdrawing funds early usually incurs a penalty.³

Yes, Bank CDs at Morgan Stanley Private Bank are insured by the Federal Deposit Insurance Corporation (FDIC) up to the allowable limits. Currently, deposits are insured up to $250,000 per depositor, per FDIC-insured bank, per account ownership category (e.g., single accounts, joint accounts, etc.).

To help meet your savings needs, Morgan Stanley Private Bank offers Bank CDs with a variety of terms. You can view all of our available Bank CD terms, see current rates, and open an account here.²

Yes, you can open your Bank CD account online and fund it via ACH, wire, or check. Bank CD accounts are eligible to be opened as either individual or joint accounts.

If your Bank CD is funded within the first 10 calendar days of account opening, your APY will be the highest of either the prevailing interest rate on the date you opened your account or the date your funding was received.² If you fund more than 10 calendar days after account opening, you’ll receive the prevailing interest rate as of the date your funding was received. View current Bank CD rates.

While it’s not possible to add money to an existing Bank CD once it’s open and funded, you can open additional Bank CDs. You can also execute a strategy known as a CD ladder whereby you spread funds across multiple Bank CDs with short to long maturities. This allows you to earn potentially higher interest rates while freeing up access to your cash at more frequent intervals.

Your annual percentage yield (APY) is guaranteed and your Bank CD account begins accruing interest daily starting on the funding settlement date.²

At the end of the agreed upon term, your Bank CD will mature and automatically rollover into the same term at prevailing rates. You then have a grace period of seven calendar days to decide what you want to do with the funds.² Your choices are:

1. Withdraw your money and transfer it to another type of account, such as a brokerage, checking, or high-yield savings account
2. Use the funds to open a new Bank CD with a different principal amount and/or term
3. Allow your Bank CD to automatically renew with the same term at the rate effective as of your maturity date (in this case, no action is required by you)³

Note that if you choose to allow your Bank CD to automatically renew, a renewal confirmation letter will be sent to you soon after the grace period ends.

As with any Bank CD account, there is a penalty for withdrawing funds prior to the end of your term.³

The penalty for early withdrawal equals to a certain number of days of simple interest determined based on the term of the CD as follows:

You can call 800-387-2331 to speak with a Customer Service Representative about early withdrawals from your Morgan Stanley Private Bank CD account.

A Bank CD is issued directly by a bank such as Morgan Stanley Private Bank and requires you to deposit funds for a fixed amount of time. On the other hand, a Brokered CD is purchased through a brokerage account and may be sold on the secondary market at any time prior to maturity. Learn more about the similarities and differences between Bank CDs and Brokered CDs.