What is the difference between bank and brokered CDs?
Bank CDs and brokered CDs are both FDIC-insured up to $250,0001 per depositor, per institution. The difference boils down to: • Choice: While most banks have a limited CD selection, Schwab CD OneSource™ provides over a hundred CDs from dozens of banking institutions, of all types and maturities, including some of the highest-yielding CDs in the country. • Liquidity: Typically, CDs purchased directly from banks, Savings & Loans, or Credit Unions are Schwab account are included on your Schwab portfolio statement and can be conveniently accessed in one place. • Rollover: Many bank CDs automatically roll over. At Schwab, we do not automatically reinvest your CD. We notify you before maturity and suggest that you review your options a week prior to a CD’s maturity date. You can then select a product that meets your needs at this time. If you wish to choose another CD, chose one with a first settlement date a few days after the maturity date of your current CD.
