Use Brokered CDs to Insure Large Deposits

A brokered CD is a Certificate of Deposit sold by broker and can offer very competitive market rates while maintining full insurance coverage. Effectivly brokered CDs split up a sum of money over the FDIC limits and spreads it out into smaller insured deposits over many different banks. The rates tend to be very competitive because the financial institution is competing directly with other institutions for your deposit in the open market. Brokered CDs are usually purchased through a brokerage account and terms can range from 30 days to 5 years just like any other CD offering.

When working with a broker on a brokered CD it is important to verify all CDs are under the $100k limit per insitution and any changes are made if two institutions merge.