Quote:
Originally Posted by rjm1cc
Look for CD's from a few on line brokers and most likely on line banks.
Read the fine print. If you cash in early you probably lose 6 months of interest. Some might even be a year. But if you think of keeping your cash in the bank for 5 years or getting a 5 year CD and cashing it in at the end of 3 years for some reason you are still ahead. Point is you may want 3 to 5 years or maybe all 5 years. The key is to keep the amount of each CD small so you do not have to cash in your total dollar amount.
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"Brokered CDs" don't work the same as "bank CDs". You can't "cash them in" early. If you need your money before maturity - you have to sell them on the secondary market. Where you will take a "haircut" (perhaps 3-5%). They really are buy and hold to maturity investments.
Bank CDs versus brokered CDs | Bankrate.com
Note that basically all brokered CDs have "death puts" (when the owner dies - you can redeem them at par). Robyn
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