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Interest Payments From Brokered CD’S Bought At Vanguard

sams1985
  |     |   781 posts since 2022

How is interest paid out on these brokered cd’s? can it be sent to a separate vanguard / external account if you don’t want to roll it back into the CD ?

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alan1
  |     |   877 posts since 2015
Interest on brokered CDs is usually paid out periodically (most commonly, every six months). For CDs issued with terms of one year or less, the entirety of the interest is sometimes paid at maturity.

from Vanguard:

"When does a brokered CD pay interest?

"The issuing bank determines when it will pay interest on the brokered CD. Generally, interest is paid at maturities of one year or less. Sometimes banks pay interest monthly. For maturities beyond one year, banks may pay interest semiannually, quarterly, or monthly. To see the payment schedule, select the issuing bank and review the description."
https://investor.vanguard.com/investment-products/cds

The interest will be paid into your Vanguard settlement fund. That will happen regardless of what you may or may not "want".
See https://personal.vanguard.com/us/content/Funds/FundsCertOfDepositOVContent.jsp
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