Personal Investments • Some questions on CDs

Hi,

I have some questions on CD(certificate of deposit):

1. For CD that will mature shortly, for example, on Oct 4, what is the risk of it if I wait for the mature of the CD? I see one CD is issued from a company not very famous. Will the issuer become the risk?

2. I see FDIC protect 250k USD for CD. So does that mean if the issuer is bankrupt, I can still get the principal back if it is <= 250k? And such a protection has no relation with my broker account protection(IBG provide 500k protection on SPIC)

3. Is CD works similar to other bonds such as US Treasure? That is, purchase it from the secondary market with a lower price, such as, 98.5, then when it is matured, I get the full amount of the pricincal, i.e. 100? With the difference (100 - 98.5) = 1.5 as one part of the principle. Together with the interest paid by the CD? I check online document, and most of them only said interest as a profit.

4. Is the interest paid by CD taxable to non-US? I see online document said a sample, a CD with 6% return will only get about 3% after tax.

Thanks

Statistics: Posted by ccw — Wed Jul 03, 2024 9:48 pm — Replies 0 — Views 116

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