Ask Terry Questions Broker CD’s

Broker CD’s

By Terry Savage on August 27, 2014 | Chicken Money


What do you think about brokered cd’s? What should one know about them or be aware of? I see that they offer a little higher interest.


Terry Says:  I think they are not worth the effort to gain a slight edge in rates — even if they are FDIC-insured (which you should check).  If you miss one week of interest because of the transition between banks, on both the buying and ending side,  the interest rate advantage is basically negated.  And there may be penalties beyond the standard if you need to access your cash before the term ends.



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