A bank certificate of deposit (CD) is a savings product offered by a bank in which the customer deposits money for a set period of time in exchange for a guaranteed return on the investment. A brokered CD is essentially the same product, but is offered by a broker rather than a bank.

The main difference between bank CDs and brokered CDs is that bank CDs are typically FDIC-insured, while brokered CDs are not. This means that if the bank fails, the customer’s money is insured up to a certain amount. With a brokered CD, the customer’s money is not …