9 Stock Picking Tips 9 Tips for Safeguarding Your Accounts (2 of 9)

9 Tips for Safeguarding Your Accounts (1 of 9)

Use a brokerage account to invest in brokered CDs.
By opening an account with a brokerage firm you can invest in brokered CDs. These are typically CDs with large denominations, which are issued by banks to brokerage firms for their customers' investments. Brokers "pool" investors' funds to purchase the CDs, enabling investors to get a share in larger CDs (with potentially higher interest rates) than what they would be able to access by investing on their own. Brokered CDs also allow investors to buy multiple CDs issued by different banks and qualify for FDIC coverage for each CD held.
Before investing in brokered CDs be sure that:
-You understand the terms and features of each CD you invest in
-The bank offering the CD is an FDIC-insured bank
-You don't invest in a CD offered by a bank where you already hold accounts (because you may inadvertently exceed the FDIC insured limit)
-You get documentation of your ownership (or partial ownership) of the CD from your broker (i.e. a copy of the CD's title) to ensure that you qualify as a depositor for the FDIC coverage.
Source: http://www.investopedia.com/articles/pf/08/account-protection.asp, http://tomorrowsmoney.org, http://www.katieadams.homestead.com