American First Assurance

Wall Street Journal,

“Brokers are also offering FDIC insured CDs with yields that exceed the average yield on CDs purchased directly from banks.”

 

“Brokerage firms can offer higher yields because they negotiate directly with financial institutions whose CDs they sell, often ageing to take millions of dollars certificates.”

 

 Worth Magazine,

“Investors still ought to consider brokerage CDs.  For one thing brokerage offered CDs yield 1 to 1.5 percentage points more than CDs from leading banks.”

 

 

            Federal Deposit Insurance Corporation - Tips For Savers   April 23, 2012

"Consumers also purchase CDs through brokerage firms. A consumer with significant funds to deposit may use a broker to make deposits at multiple banks, thereby maximizing the consumer's FDIC insurance coverage. In addition, consumers may be attracted to CDs sold by a broker who has made significant deposits in a bank on behalf of multiple depositors and, therefore, is able to negotiate higher CD interest rates than the individual consumer."  

 

Federal Deposit Insurance Corporation - FDIC Consumer News - Fall 2000

"Yes, brokers sometimes can negotiate a higher interest rate on bank-issued CDs because they can bring a large amount of deposits to the bank."

 

Federal Deposit Insurance Corporation - FDIC Consumer News - Fall 2003

"Brokers sometimes can negotiate a higher interest rate on bank-issued Certificates of Deposit, and these can be good investments."