Advertising Disclosure
  1. Home
  2. Community
  3. Miscellaneous
  4. Comparing Current Ally, Discover & Marcus Direct Versus Brokered CD Rates

Comparing Current Ally, Discover & Marcus Direct Versus Brokered CD Rates

RichardW
  |     |   821 posts since 2019

Here is a comparison of the current (6-27-2022) rates of three major online banks (Ally, Discover, and Marcus/Goldman Sachs) for their direct CDs versus their brokered CDs. The brokered CD rates listed are for new issue, non-callable CDs currently offered at Vanguard and Fidelity. The direct CD rates listed were obtained from each bank’s website. For the comparison I utilized 3 different CD durations which were available for each bank: 1-year, 18-month, and 3-year. In the results which follow, the brokered CD rate is listed first, and the direct CD rate is listed second. For Ally…1-year: 2.70%/1.75%, 18-month: 2.85%/2.00%, 3-year: 3.25%/2.25%. For Discover…1-year: 2.80%/1.50%, 18-month: 3.00%/1.80%, 3-year: 3.30%/2.30%. For Marcus/Goldman Sachs…1-year: 2.80%/1.90%, 18-month: 3.00%/2.00%, 3-year: 3.35%/2.50%. Due to our current environment of rising rates, I expected the brokered rates to be higher, but I was surprised by how much higher.

  Post a comment
14


Wonder
  |     |   11 posts since 2022
Thanks RichardW. If I wanted out of a brokered CD what would my alternatives be?
Reply
1
RichardW
  |     |   821 posts since 2019
Wonder…You would need to sell the brokered CD in the secondary market. For more details, see Ken Tumin’s comment at: https://www.depositaccounts.com/community/ask/47950-brokered-cds.html and the informative link he provides at: https://www.depositaccounts.com/blog/notes-personal-ira-cd-investing-longtime-reader-2.html
Reply
4
RichardW
  |     |   821 posts since 2019
Wonder…Here is another helpful article which explains brokered CDs and describes some of their pros and cons: https://www.bankrate.com/banking/cds/what-are-brokered-cds/
I first noticed this useful article when reading an answer concerning brokered CDs posted by DA reader, alan1, on 6/12/2022 in the DepositAccounts “Ask the Community” forum.
Reply
2


The financial institution, product, and APY (Annual Percentage Yield) data displayed on this website is gathered from various sources and may not reflect all of the offers available in your region. Although we strive to provide the most accurate data possible, we cannot guarantee its accuracy. The content displayed is for general information purposes only; always verify account details and availability with the financial institution before opening an account. Contact [email protected] to report inaccurate info or to request offers be included in this website. We are not affiliated with the financial institutions included in this website.