Brokered CDs

Many people are familiar with traditional bank CDs. However, fewer people are familiar with brokered CDs (certificates of deposits), which are bank CDs bought and sold through a brokerage.

Brokered CDs function just like bank CDs — they are fixed-income investments that allow investors to earn a guaranteed rate of return over a set period. However, brokered CDs typically pay higher yields than bank CDs. The same CD issued by a bank can sometimes be found on a brokerage with a higher interest rate.

Brokered CDs are an alternative option for investors who want more flexibility than traditional bank CDs.

Investors enjoy FDIC insurance up to $250,000 while enjoying higher yields than bank CDs and sometimes even Treasury bills.

To start, you can read:

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