Brokered CD Benefits

Reader George shared a nice tip for "older" people (he said it, not me) investing in brokered CDs.

If a CD owner passes away before the CD matures, the heirs sometimes have options. They may leave money in the CD if they want, or they can cash it out and receive the full principal deposit without penalty. Some banks and credit unions also offer similar benefits.

If you are concerned about what happens to a CD if you die (or if you're handling money for somebody who is likely to pass away in the near future), be sure to check for these options.

Recently, brokered CD rates haven't been as good as some of the best rates available at online banks. However, they may be useful if you want somebody else to handle everything or if you need options like the one mentioned above.

Further reading:

• Brokered CD Overview
• CD Investment Basics
• CD Interest Rate Scorecard