CDs (certificates of deposit) can be broken down into a few different categories, the most common being a regular CD and a brokered CD.

What is a brokered CD?

A brokered CD is a type of CD that is sold by a broker. Brokers are individuals or firms that are in the business of bringing buyers and sellers together to execute securities transactions. When it comes to brokered CDs, the broker typically finds a buyer for the CD and then uses the proceeds to purchase a CD from a different issuer.

The biggest advantage of a brokered CD is that …