We provide two distinct categories for Certificates of Deposit: bank CDs and brokerage CDs, each catering to varying investor preferences and risk appetites.
Bank CDs represent a traditional and secure investment avenue. As federally insured deposits, they guarantee a predetermined interest rate over a fixed term, with the principal amount assured upon maturity. This federal insurance, provided by agencies like the FDIC, shields investors from the risk of bank failure, making bank CDs a low-risk option for preserving capital while earning steady, albeit potentially modest, returns.
Conversely, brokerage CDs, although similar in structure—offering a set interest rate for a defined period—diverge significantly in terms of risk and potential yield. Not covered by FDIC insurance, these CDs expose investors to the credit risk of the issuing bank. In exchange for bearing this additional risk, investors are typically rewarded with higher yields compared to traditional bank CDs. This makes brokerage CDs an appealing option for those willing to navigate the complexities of credit assessment to enhance their investment income.
Both types of CDs serve as strategic components within a broader wealth management portfolio, offering a spectrum of risk and return profiles to accommodate diverse financial goals and risk tolerances among sophisticated investors.
For investment and wealth management clients exploring real estate financing options, selecting the appropriate mortgage solution is paramount. Whether you're in the market to purchase a new home, looking to refinance an existing mortgage, or considering tapping into your home’s equity, the right mortgage product can significantly impact your financial strategy. Home lending solutions tailored [...]
Integrating your investment account with your bank account is a prudent strategy for investment and wealth management clients, facilitating seamless financial management. This linkage enables the swift and secure online transfer of funds between accounts via a protected platform, enhancing the efficiency of managing your investments and liquidity. Our checking account options are designed with [...]