brokered CDsĪ brokered CD is a savings product that provides a fixed return on your deposit for a period that you choose.
Here’s how brokered CDs compare to traditional CDs and what to know when you’re shopping for one. “The downside for the investor is that they might have to give up a high interest rate, and are now obligated to reinvest at a lower rate for another term,” says Holley Cary, a senior financial planner at First Horizon Advisors in Memphis, Tenn.
The biggest downside is that CDs are typically callable: While the investor has the option to cash-in their CD early by selling it to another investor, the issuing bank can exit the contract prematurely too.
