Comprehensive Brokered CD List and CD Rates

YieldAlley has compiled a comprehensive, up-to-date list of brokered CDs from major brokerages such as Fidelity, Schwab, Vanguard, E*Trade, TD Ameritrade, and Merrill Edge.

All these banks listed here are FDIC (Federal Deposit Insurance Corporation) members. This means your deposits up to $250,000 per insured bank will have full coverage from the FDIC.

YieldAlley has made a best effort to collect and present the information provided, but we cannot guarantee its completeness or absolute accuracy.

List of Bank CDs

What Are CDs?

A traditional certificate of deposit (CD) is a financial instrument that allows an individual to invest a certain amount of money for a fixed period of time at a specified interest rate. Banks and credit unions typically offer it as a savings option. 

When you purchase a CD, you agree to leave the money in the account for a specific duration called the maturity period, which can range from a few months to several years. During this time, the funds are locked and cannot be withdrawn without incurring penalties.

The interest rate offered on a CD is generally higher than that of a regular savings account, making it an attractive investment choice for those looking to grow their savings with predictable returns.

At the end of the maturity period, the principal amount and accumulated interest are returned to the investor. CDs are low-risk investments insured by the Federal Deposit Insurance Corporation (FDIC) up to a certain limit, ensuring that the investor’s money is protected. 

What Are Brokered CDs?

A brokered CD, also known as a certificate of deposit, is a type of investment that is issued by a bank or financial institution and sold through a brokerage firm.

Unlike traditional bank CDs, which are bought directly from a bank, brokered CDs are purchased through a broker who acts as an intermediary between the investor and the issuing bank. Such brokerages include Fidelity, E*Trade, Vanguard, TD Ameritrade, and Charles Schwab, to name a few.

One key difference is that brokered CDs offer a wider range of options, as they are not limited to the CDs offered by a single bank. Investors can choose from a variety of banks and credit unions, each offering different terms and interest rates. Brokered CD rates are typically higher than bank CD rates.

Another difference is that brokered CDs can be traded on the secondary market, allowing investors to sell them before they reach maturity. This gives investors more flexibility and liquidity, and makes it easier to build a CD ladder.

Overall, brokered CDs offer investors more choices and flexibility compared to traditional bank CDs. 

Are CDs a Good Investment?

CDs can be considered a good investment for some individuals for several reasons.

Firstly, they offer a fixed interest rate over a predetermined period of time, providing stability and predictability in returns. This can be appealing to risk-averse investors who prioritize the preservation of capital.

Additionally, CDs are insured by the FDIC up to $250,000 per depositor, providing a level of security that is not available in other forms of investments.

However, the interest rates CDs offer are generally lower than other cash equivalents such as Treasuries and money market funds. This is not always true, and we encourage you to check the latest CD rates.

Additionally, unlike treasuries, traditional CDs cannot be easily bought or sold in the secondary market, limiting their liquidity, although you can do this with brokered CDs.

You may also want to consider ultra-short-term ETFs that offer higher potential returns but also have higher risks.

The suitability of CDs as an investment depends on your risk tolerance, investment goals, and time horizon. 

Are CDs Safe?

Investing money in a certificate of deposit (CD) can be daunting, since you need to hand over a large sum of money for a certain period of time.

Brokered CDs and bank CDs are extremely safe investments, considered to be essentially risk-free and a secure method of saving money because they are backed by federal deposit insurance. 

If you’re concerned about the collapses of First Republic Bank and Silicon Valley Bank, remember that your deposits are protected by deposit insurance, such as the one provided by the Federal Deposit Insurance Corp. 

This insurance safeguards your money in the unlikely event of your bank closing.

What is FDIC Insurance?

FDIC (Federal Deposit Insurance Corporation) Insurance is a program created by the U.S. government to protect depositors in banks and savings associations. It was established in response to the widespread bank failures that occurred during the Great Depression.

The primary purpose of FDIC Insurance is to ensure that depositors will not lose their money if a bank fails. Under this program, all deposits at FDIC-insured banks are insured up to $250,000 per account ownership category. This means that if an individual has multiple accounts at the same bank, such as a checking account and a savings account, both accounts would be insured separately, up to the $250,000 limit.

FDIC Insurance covers various types of deposits, including checking accounts, savings accounts, certificates of deposit (CDs), and money market accounts. It is important to note that FDIC Insurance does not cover investments in stocks, bonds, mutual funds, and annuities.

FDIC insurance for brokered CDs provides additional coverage for investors. Normally, the FDIC provides coverage up to $250,000 per depositor, per insured bank. However, the coverage can be expanded in the case of brokered CDs, since you can buy CDs from multiple banks in a single brokerage account.

For instance, if an investor purchases two brokered CDs from two different banks, each for $250,000 for a total of $500,000, the investor would receive coverage for the entire investment in both banks, totaling $500,000. 

Overall, FDIC Insurance provides peace of mind to depositors, knowing that their funds are protected in case of a bank failure. 

What is the FDIC?

The Federal Deposit Insurance Corporation (FDIC) is an independent agency of the U.S. government that provides deposit insurance to individuals and businesses in banks and savings associations. It was created in 1933 in response to the widespread bank failures during the Great Depression.

The FDIC insures deposits up to $250,000 per depositor, per insured bank, for each account ownership category.

If a bank fails, the FDIC will reimburse the depositors for their lost funds, up to the insurance limit.

The FDIC is funded by premiums paid by banks and savings associations, and it also manages failed banks and resolves their financial affairs. By ensuring the safety of depositor funds, the FDIC promotes public confidence and stability in the banking system.

The FDIC plays a crucial role in safeguarding the money deposited in banks, providing peace of mind to account holders and maintaining the financial system’s integrity. 

Information Disclaimer

The information presented here is accurate to the best of our knowledge but is subject to change without notice. We make no warranties, expressed or implied, regarding the accuracy or completeness of the information provided.