Certificates of Deposit 

 

With Certificates of Deposit (CDs), a specific amount of money is deposited and guaranteed to earn a set interest rate.

For investors uncomfortable with the unpredictability of the stock market, CDs may provide the safety and competitive rates to protect investment principal and generate income they seek. CDs are most appropriate for purchasing and holding until maturity.

Certificates of Deposit are available through Northwestern Mutual Investment Services, LLC.

Features 

Types 

Contact Us 

 

 

 

Key Features of Certificates of Deposit

CDs offered through Northwestern Mutual Investment Services, LLC (NMIS) provide an investor with:

  • Competitive Rates—NMIS offers rates that are highly competitive.

  • Flexibility—At maturity, automatic rollover to a new CD does not occur. You choose how to direct your investment proceeds upon maturity.

    Substantial prepayment penalties may be charged if CDs are liquidated before maturity. The dollars received upon liquidating a CD through NMIS prior to maturity are contingent upon current market conditions.

  • Variety—CD offerings allow you to choose the type of CD and maturity date that fits your needs.

  • Transfer Service—Transfer matured proceeds from other CD accounts to NMIS to take advantage of competitive rates and/or money market funds. Your CDs may risk automatic rollover with current interest rates at your existing financial institution.

  • Protection—Funds are insured by the FDIC for up to $100,000 per depositor, per institution.*

*Due to market conditions experienced at the end of 2008, the Federal Deposit Insurance Corporation expanded the FDIC coverage limits from $100,000 to $250,000 per depositor, per institution. This additional FDIC coverage is set to sunset on 12/31/13 unless renewed.

Types of Certificates of Deposit

A variety of CDs are available through Northwestern Mutual Investment Services, LLC (NMIS).

Interest Bearing CDs


Fixed Rate CDs*

  • Provide a guaranteed, fixed interest rate that is determined at purchase and remains constant for the duration of the certificate
  • Interest is typically paid twice a year
  • Maturities range from 3 months to 10 years
  • FDIC Insured

Variable Rate CDs*

  • Pay a rate of interest that changes at pre-determined levels according to a specified formula or key interest rate
  • Provide a guaranteed return on principal when held to maturity
  • FDIC Insured

Zero Coupon CDs*

  • Offered at a discount from par
  • The discount is considered taxable income by the IRS and must be declared annually
  • Suited for long-term investors in Individual Retirement Accounts with tax-deferred growth
  • Do not pay interest until maturity
  • Maturity may range from 5 to 20 years
  • FDIC Insured

Inflation Indexed CDs*

  • Provide investors with inflation protection
  • Typically indexed to inflation on the basis of changes to the Consumer Price Index (CPI)
  • FDIC insured

Download Important Information About Certificates of Deposit which describes the types of CDs offered as well as their corresponding risks.

*These investments are sold in the secondary market. The secondary market for long-term CDs may be limited. If sold prior to the maturity or call date, they are subject to price fluctuations and may be worth less than their original cost.

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You should carefully consider the investment objectives, risks, expenses and charges of the investment company before you invest. Your Northwestern Mutual Investment Services Registered Representative can provide you with a prospectus that will contain the information noted above, and other important information that you should read carefully before you invest or send money.

All securities are offered through Northwestern Mutual Investment Services LLC, (NMIS), Suite 600, 611 E. Wisconsin Avenue, Milwaukee, WI 53202, 1-866-664-7737. Member FINRA and SIPC. NMIS is wholly owned by Northwestern Mutual.

Copyright © 2010 The Northwestern Mutual Life Insurance Company. All Rights Reserved.
"Northwestern Mutual” is the marketing name for The Northwestern Mutual Life Insurance Company, Milwaukee WI (life insurance, disability insurance, and annuities) and its subsidiaries and affiliates. Long-term care insurance is issued by Northwestern Long Term Care Insurance Company, Milwaukee, WI, a subsidiary of The Northwestern Mutual Life Insurance Company. Securities and investment advisory programs are offered through Northwestern Mutual Investment Services, LLC (NMIS), a wholly-owned company of The Northwestern Mutual Life Insurance Company and a dually registered broker-dealer and investment adviser, member FINRA and SIPC. Investment advisory programs and trust services are offered through Northwestern Mutual Wealth Management Company® (NMWMC), Milwaukee, WI, a wholly-owned company of The Northwestern Mutual Life Insurance Company and limited purpose federal savings bank. The products and services referenced are offered and sold only by appropriately appointed and licensed entities and representatives of such entities. Each Financial Representative represents one or more, but not necessarily all of the entities shown. The Northwestern Mutual Life Insurance Company is neither a registered investment adviser nor a registered broker-dealer.