Best Brokered CD (Certificate of Deposit) Rates

Certificates of deposit are great tools for investing because they allow depositors to earn high interest rates without additional risk. Yet, not all CDs are created equal. All of them have their advantages but it will always depend on how much you know about investing, how well you know your chosen financial institution and much you want to earn.There is a kind of CD which you can sell. You may want to look at the brokered CD. Read this article and find out what makes the brokered CD unique.

Compare Best Brokered CD Rates

Account Type:
Certificates of Deposit
Amount:
Term:




The Convenience of Having A Brokered CD

As its name implies, brokered CD's are acquired from brokers. With this kind of Certificate of Deposit, anyone who handles your finances like your advisor will make a survey on the marketplace to find where the best rates are available. Similar to the other CD's, brokered CD will ask the depositor to keep his money with the bank for a certain period of time which is called the maturity date. In return the bank will pay you a certain amount of money with the agreed interest.

While it has some features similar with the common types of CD's, there are a few unique things about brokered CD. When you are looking for a CD, you actually can open one with several banks but only with their own CD's being offered. The good side of the CD which is brokered is that you can sell it to others when you want to get your cash anytime you want it. A depositor can be on the advantage side if you find a bank that would not try to impose higher deposit with a low rate.

Like the rest of the fixed-income investments, a brokered CD can be bought and sold. There is a place for this type of CD on the secondary market though there is only a limited supply with a limited size order which is typically $10,000.

This type of certificate of deposit can be offered by brokers, financial planners and advisors and financial consultants. If there is something which might not be clear regarding your CD, your financial consultant would be the best person to ask. The money that you earn is based on the Annual Percentage Yield or APY. A depositor is not charged upon opening a CD through a broker in the bank. The bank would pay a client more or less depending on the profitability.

Like all the other investments, there is no 100 percent assurance. The primary risks with brokered CD's are the risks on the market. You could be selling your CD in a secondary market lower than how much you paid for it. For you to get rid of the risk, it is ideal that you keep the money with your bank or issuer until it reaches its maturity. But then again, there might still be a possible risk with this. Your plans of keeping your money until maturity could be a subject to change when interests rise. When you bring your CD in the secondary market, the buyers may not be willing to pay the value you're offering.

Another risk for this kind of CD is that you may likely to lose all your money. It is then a very important factor that you check whether the bank you are getting your CD is accredited with FDIC. If it is not then better walk away and find for a bank that can get your money insured.

If you do your homework, you will be able to find CD rates which are way higher than the average that you can usually get. This sounds overwhelming but be reminded that there is a higher risk with higher CD rates. There are a number of banks that can offer you the best rates and all it takes is to invest more time and effort to find one.

ONLINE SAVINGS ACCOUNT

  • No minimum balance
  • Competitive rates, No risk

MONEY MARKET ACCOUNT

  • High rates, Access to money
  • FDIC Insured

CDs Overnight Averages

Product
Yield
+/-
Last week


3 Mo CD
0.11
-
0.11


6 Mo CD
0.17
Up
0.16


1 Yr CD
0.26
-
0.26


1.5 Yr CD
0.32
-
0.32


5 Yr CD
1.01
-
1.01


CD Types


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