CD and Treasury Rollover
Automatically reinvest the principal on your maturing CDs and U.S. Treasury securities.
CD and U.S. Treasury rollover
CD and U.S. Treasury rollover is a convenient way of keeping your money invested.
It's easy to get started. Just select "Auto-Rollover" when purchasing a new CD or Treasury.
How it works.
During the order-entry process for your first trade, read and agree to Schwab's terms and conditions of service. Next, you'll mark eligible investments to automatically roll over upon maturity into similar investments.
Emails will keep you informed about the timing and status of your auto-rollovers. We'll send a notice with details roughly two weeks before you have a rollover and again at the time of rollover.
Your CD and U.S. Treasury investments will continue to roll over at each maturity date until you choose to change or cancel your instructions on Schwab.com.
Note: As a reminder, you're responsible for monitoring FDIC limits. The CD rollover limit is $250,000 and the Treasury rollover limit is $5,000,000. Treasury rollover orders are submitted at auction as non-competitive orders. Schwab will maintain only one rollover instruction per CUSIP in each account. Replacement yield is likely to vary from your investment's original yield. Interest earned will not be reinvested. You may elect to automatically reinvest proceeds that are part of a ladder or other strategy. If one leg of a U.S. Treasury or CD ladder fails to reinvest for lack of an appropriate replacement position (or any other reason), Schwab will attempt to roll over the remaining positions in the ladder.
Here's a list of questions to guide you through the process.
Once you agree to Schwab's terms and conditions, mark your eligible investments to roll over at their maturity date.
For new purchases of CDs or certain U.S. Treasuries, during the order entry process, select an eligible investment and then designate your investment by selecting "Yes" for Auto-Rollover.
For CDs, you have the option to keep the maturity term the same as it is for the CD you are buying or select a new maturity term for your investment to roll over at maturity. For example, you may be selecting a 6-month CD but would prefer that it roll over into a 3-month CD; in that scenario, you’d select a 3-month term.
For existing CDs, go to the Positions page to designate an existing eligible CD that you own for rollover. You will be able to change the rollover designation from "No" to "Yes" and select the desired rollover maturity term.
The following fixed income investments are eligible for rollover:
All new-issue and secondary market CDs
They can be rolled into new-issue 3-, 6-, 9-, 12-, 18-, 24-, and 60-month CDs.
New-issue Treasuries bought at auction
They can be rolled into 4-, 8-, 13-, and 26-week bills at auction.
There is no additional fee to participate in the rollover service. However, transactions resulting from automatic reinvestment are subject to Schwab's standard pricing schedule.
Mark a new or existing eligible security for rollover either from the trade ticket during the order-entry process or from your Positions page on Schwab.com.
Schwab uses the following methodology when determining the new investment for your rollover order:
- The same face value as your maturing CD
- The same maturity term as you have instructed us to buy
- Must be available in your state; no Blue Sky restrictions
- The highest APY available at Schwab at the time
- Must be a new issue
- Must be a fixed coupon
- Must be non-callable
- Must have a settlement date far enough in the future for Schwab to reasonably accommodate the rollover
- The same face value as your maturing Treasury
- The same maturity as your original order or most recent instruction
- All orders will be placed at auction
If Schwab is unable to meet any of the above criteria, your new rollover order will not be placed and the money will remain in cash in your account. You will be notified of any unsuccessful rollovers and will be asked to visit the fixed income trading site on Schwab.com to select a new investment.
1. Schwab reserves the right to modify its methodology or criteria at any time.
Your rollover instructions for existing holdings can be managed from the Positions page on Schwab.com. Your options include:
- Change your instructions so your investments don't roll over at maturity
- Enter new rollover instructions for CDs
- Change your new rollover maturity term for CDs
Yes, you can purchase multiple CDs to mature at staggered intervals. CD rollover also allows you to set up a CD ladder, where each rung will roll over at maturity.
For example, here’s how you would set up a one-year CD ladder:
- Buy a 3-month CD and set rollover term for this CD to 1 year.
- Buy a 6-month CD and set rollover term for this CD to 1 year.
- Buy a 9-month CD and set rollover term for this CD to 1 year.
- Buy a 12-month CD and set rollover term for this CD to 1 year.
When each CD comes due, it will roll over to the back end of the ladder and help you maintain a 1-year CD ladder with a CD rolling over every three months.
Reminder notice that you have an upcoming rollover in your account.
Sent approximately two weeks before an investment's maturity date, this reminder email notifies you that your investment is due to roll over unless you cancel or change your upcoming rollover instructions.
Notice the day we place an order for your rollover.
This email includes details about your new rollover order. Review the new order carefully, as you will have a limited time to cancel the new transaction. As a reminder, you are responsible for managing your FDIC insurance coverage limits.
Notice if your rollover is unsuccessful.
In the event Schwab cannot find a new investment that meets your rollover criteria, you will be notified and able to buy a new investment that meets your goals on Schwab.com.
If you submit different rollover instructions for the same CUSIP (buy the same security twice), the last rollover instructions submitted will control the entire position.
- You buy 25 of "XYZ" and select "No" for rollover. You then buy 25 more "XYZ" and select "Yes" for rollover. The resulting position is 50 "XYZ"; all will be selected "Yes" for rollover.
- Or you buy 25 "XYZ" and select "Yes" for rollover. You then buy 25 more "XYZ" and select "No" for rollover. The resulting position is 50 "XYZ"; all will be selected "No" for rollover.
- Or you buy 25m of the "8-week Treasury Auction" and select "Yes" for rollover (into 8-week auction). Four weeks later you buy 25m of the "4-week Treasury Auction," which has the same CUSIP due to Treasury reoffering, and select "Yes" for rollover (into 4-week auction). You will now own 50m of the same Treasury CUSIP, and they will all be selected "Yes" for rollover.
Changing an auto-rollover.
Since you may periodically need to change your rollover instructions, we make it quick and easy.
If you have marked a CD or U.S. Treasury for rollover and at any time before the day it matures you want to cancel your instructions, you can change your instructions on the Positions page by clicking the "Yes" link in the Reinvest column and changing "Yes" to "No."
If you receive notification your security is ready for rollover and you don’t want to purchase this new investment, there’s a limited time to cancel your order.
- For Treasuries, you may cancel before our cutoff on the morning of the auction, typically 10:00 a.m. ET.
- For CDs, you may cancel before market close on the business day following your new order. If you wish to cancel your order to purchase this investment, please visit schwab.com/positions.
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