No. of Recommendations: 2
I'm just not sure I understand how they [brokered CDs] work into a portfolio.

For the exceptionally lazy, you can call your broker and have them buy the highest interest rate CD they can find. And then your broker gets a fee somehow for doing the work you could do by going to bankrate.com and checking out the interest rates yourself.

There's possibly a bit of convenience in getting just a single statement with all of your assets instead of having to track CDs at several different institutions. Again, there is a cost to that convenience, possibly in a lower interest rate than you could find yourself, or possibly in a more direct fee.

Finally, I suspect not all banks will issue brokered CDs. And I doubt if many credit unions issue them. That cuts out several options from your choice of CD investments.

Personally, I don't have any use for brokered CDs. I think buying a CD directly is the better way to go.

--Peter
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