My broker, Schwab, offers an FDIC-insured CD with CUSIP 38148J6B2. The CD matures on 1/21/2020, with a fixed semi-annual coupon rate of 1.950%. It is priced at par ($100) with an APY of 1.950%. Does this mean that if I buy it, I earn 1.950% in interest on each CD,
for the next five years each year until maturity, with the only catch being that I lose money if I try to sell it before the maturity date or if rates go up (so I could get a better CD if I wasn't tied down)?
I ask because it's way better than the 1% I earn on my savings account and I think the only risk is that I'm locked into the CD for five years.
edit - thanks to JB King for the correction.