Posted by Current CD Rates on 07/18/08 in Charles Schwab
Charles Schwab is offering some high rates on its brokered CDs. The most competitive rates as of 7/16/08 include a 4% APY 12-month CD, a 4.45% APY 24-month CD, a 4.60% APY 36-month CD and a 5.50% APY 10-year CD.
Schwab CD OneSource is a marketplace of CDs from FDIC-insured banks across the country. As is described by Schwab, you can purchase CDs online in your Schwab account as you would a stock or mutual fund.
For an overview of brokered CDs, refer to this About.com article and this FDIC article. One of the risks of brokered CDs is that if you need to make an early withdrawal, you’ll have to sell it at the current market rate which could be at a loss. One benefit according to Schwab is that there are no early withdrawal penalties.