Brokered CDs

A brokered CD is a deposit obligation of a depository institution in the United States or one of its territories, the deposits of which are insured by the Federal Deposit Insurance Corporation (the "FDIC") within applicable limits. An investor's deposits at any one depository institution, including any CDs of that institution that the investor purchases, are eligible for FDIC insurance up to $250,000 (including principal and accrued interest) for each insurable capacity (e.g., individual, joint, IRA, etc.).  For purposes of the $250,000 federal deposit insurance limit, an investor must aggregate all deposits that they maintain with the depository institution in the same insurable capacity, including deposits held directly with the depository institution and deposits held through Morgan Stanley Smith Barney LLC and other intermediaries. 

Morgan Stanley Smith Barney LLC is not an FDIC-insured depository institution and deposit insurance only covers the failure of an insured depository institution. FDIC insurance available for CDs purchased through Morgan Stanley Smith Barney LLC is subject to certain conditions; please review the expanded disclosure statement here and any other disclosure available for a particular CD. For additional important information about brokered CDs, please review the expanded disclosure statement here. For more information about FDIC insurance, please visit the FDIC website at www.fdic.gov.
Like all investments, Brokered CDs are subject to risk. Before you buy a brokered CD, you should understand the risks and rewards, determine if your Brokered CD has a "call" provision, and check the issuer's bank rating. If you decide to sell your brokered CD prior to maturity, there is no guarantee that there will be a market for your Brokered CD or that you will get back what you originally paid. Expanded disclosure statement can be found here.