Bank of America’s Standard CDs have much more flexible terms ranging from 1 month to 10 years (120 months). Consumers may choose the exact number of months within that range. All terms pay 0.03% APY currently other than 3-5 month terms which pay 4.00% APY. APY.
1. A brokered CD is purchased through a brokerage firm rather than directly through a bank. Brokers set a minimum investment amount, usually $1,000. Funds can be added to a brokered CD in any
The secondary market involves investment brokers acting as intermediaries. Brokers buy CDs from banks or from other investors who currently hold CDs. You have many more buying options on the 4) Interest on bank CDs can be either compounded or fixed. Interest on brokered CDs does not compound. 5) Brokered CDs can be callable. 6) Brokered CDs can be purchased from the secondary market and are priced and transacted like bonds. 7) Bank CDs can generally be opened for any $ amount. Brokered CDs are sold in $1000 units. 3. Differences in costs. Transaction costs: Brokered CDs may cost more to obtain than bank CDs. The difference depends on the specific brokerage and the services it offers. Some brokerages may simply add the ticket charge to your costs, while others may charge fees for asset management, financial planning, and more.
