Brokered CD

(redirected from Brokered Certificates of Deposit)

Brokered CD

A certificate of deposit issued by a bank or thrift institution bought by a brokerage firm in bulk for the purpose of reselling to brokerage customers. A broker CD features a higher interest rate, usually 1% higher, and are FDIC insured and do not usually have commissions.

Brokered CD

A certificate of deposit (CD) that one buys through a brokerage. A bank originates the CD, which a brokerage then buys and sells to its clients, usually in smaller pieces. A brokered CD pays a higher interest rate than most CDs to which a small investor has access, and may be traded. As with all CDs, they are insured by the FDIC.

brokered CD

A certificate of deposit of a commercial bank or savings and loan that is sold through an intermediary (usually a brokerage firm) rather than directly by the savings institution itself. Small investors can frequently obtain rates paid on very large certificates through brokered CDs, which are generally sold in $1,000 units.
References in periodicals archive ?
Total deposits declined slightly over the linked quarter, to USD553m at June 30, 2012, as the Bank favorably restructured certain brokered certificates of deposit issued for interest rate risk management purposes to take advantage of record-low, long-term interest rates.
Total deposits were relatively unchanged from a year earlier, but at March 31, 2012, the company had no brokered certificates of deposit compared with USD16.
3m during the third quarter of 2011, primarily due to the bank's calling and redeeming USD3m of brokered certificates of deposit, an USD3.