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

RichardW
  |     |   830 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.

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Wonder
  |     |   11 posts since 2022
Thanks RichardW. If I wanted out of a brokered CD what would my alternatives be?
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1
RichardW
  |     |   830 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
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4
RichardW
  |     |   830 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.
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2


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