Brokered CDs are simply bank CDs offered by a financial intermediary.  It’s important to understand who is offering the brokered CDs, what the interest rate on the CDs are and what features the CD holds.  Many brokered CDs are callable CDs thus negating the benefit of a guaranteed fixed rate of return that is a standard atribute of most bank CD rates.   In the event of bank failures, the brokered CDs are often the last accounts to be identified and distributed by the FDIC.

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