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Brokerage CD's Vs. Bank CD's

Nutgraf
  |     |   8 posts since 2011

For quite some time it has seemed to me that brokerage CD's were paying less than direct bank CD's so I so I chased CD rates by going to whatever banks were paying the most. Now it looks like that has turned a corner. Today, for example, the highest rate shown here on DA for a 1 year CD is 1.31, while Fidelity has brokerage CD's for 1.50. Do any of you have thoughts about whether I should move to brokerage CD's? It is much more convenient than bank CD's.

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Kennewickkid
  |     |   17 posts since 2018
I decided to start buying brokered CDs. I opened an account at Vanguard. Bought a callable 3yr 2.95% yesterday - Ally Bk Midvale Utah 2.95% Matures 4/28/2025
Payment frequency: Semiannually Settles 4/28/2022
Callable 10/22@100 Highest direct bank 3yr I could find was 2.10% at PenFed
Downside: takes a week to settle. Lose some interest. Chance of being called near zero.
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4
bobert456
  |     |   187 posts since 2022
NUTGRAF - I had the same experience .... but have as of right now been doing secondary treasuries. I use TD Ameritrade, Schawb, and Fidelity. They are actually paying better than Broker CDs, and YES, the broker CDs are better than most listed on this site.

I expect this is temporary.

Like you, I chase the safe yield.... AND will use Broker CDs and Treasuries, and for now, limit myself to one or two year maturies.
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4
FrankSavage
  |     |   45 posts since 2017
Sent you a PM.
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1


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