7. Brokered CD
Don’t want to go through a ton of banks in order to get the highest yield? Then check out brokered CDs for which you will need a brokerage account. While it’s not always the case, you can get much higher rates with this type of account.
One thing to watch out for is that not all brokered CDs are backed by the Federal Deposit Insurance Corp, so that’s something you’ll have to do research on. Some of them may also have call options, and if that’s something you want to avoid, pay extra attention. Naturally, check for fees and withdrawal policies too.
But one thing many investors like about them is the fact that they can be traded like bonds on the secondary market. However, keep in mind that this won’t guarantee you won’t take a loss, and it’s generally a better idea to just wait for the CD to mature.
1 thought on “12 Types Of CDs That Could Boost Your Savings”
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