Offbeat Offerings: Brokered Certificates of Deposit

    by Cara Scatizzi

    Offbeat Offerings: Brokered Certificates Of Deposit Splash image

    Most investors have, at one time or another, parked a sum of money in a bank certificate of deposit (CD). A typical bank CD bears a maturity date, a specified interest rate, and is insured for sums up to $100,000 if the issuing bank is insured by the Federal Deposit Insurance Corporation (FDIC).

    Traditionally, individual investors have purchased bank CDs through local banks. But in today’s market, individual investors increasingly have access to “brokered” CDs, which are CDs issued by a bank and sold through a brokerage firm. The allure of these brokered CDs is the possibility of higher rates compared to a traditional CD purchased through a local bank.

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