https://personal.vanguard.com/us/content/Funds/FundsCertOfDepositOVContent.jsp
Brokered CDs:
Offered by banks and sold through brokerage firms. Have CUSIP numbers. Similar to bonds. Simple interest paid directly to Vanguard money market fund. Traded in a secondary market. Receive all accrued interest if sold prior to maturity. Can be sold prior to maturity in the secondary market. Does not "roll over" into another CD at maturity. FDIC insured. Fluctuating market value.
Brokered CDs generally command a higher yield than bank CDs, as they are in a more competitive market. The broker has invested a large sum with the bank, and that generates more interest than smaller amounts. As with all CDs, holders receive the full principal with interest at maturity. |
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