Hot take: people mix up CD rates from banks and brokers way too much

I was in a Facebook group last night and someone bragged about getting a 5% CD from their local credit union. But they didn't mention the broker they used had the same rate with no early withdrawal penalty. Why do folks always assume the bank across the street is the only option for fixed income?

2 comments

2 Comments

nora18410h ago

Ugh I get what you're saying about "mixing up bank and broker CDs" but honestly I think it's just easier for most folks to stick with their local bank. Not everyone wants to deal with a brokerage account just for a CD, you know? The rates are close enough that it doesn't really matter for most people.

miawalker9h ago

Broker CDs usually pay way more though, don't they?