Thursday, December 1, 2022

86% of our readers found this page helpful

3.9 / 5

Click a star to add your vote

brokered cd definition

Load more...

People also ask:

What is the difference between a brokered CD and a bank CD?
Brokered CDs generally command a higher yield than bank CDs, as they are in a more competitive market. The broker has invested a large sum with the bank, and that generates more interest than smaller amounts. As with all CDs, holders receive the full principal with interest at maturity.
Can you lose money on a brokered CD?
There's potential risk of losing value if you're selling brokered CDs instead of waiting for them to mature. An early withdrawal penalty tends to be several months' worth of interest, or more.
Is a brokered CD a security?
Although brokered CDs may have certain features that traditional CDs do not have, it is important to remember that, as long as a banking institution issues the brokered CDs, sets all of their features, and FDIC insurance applies to them, brokered CDs are generally considered bank products, not securities.
Should I buy CD secondary market?
Advantages. Using a broker to buy secondary CDs gives you many choices of maturity dates and terms. Secondary CDs often pay higher interest rates than regular CDs, according to Bankrate.com. Using a broker also makes it easier to buy and sell multiple CDs.