Quote:
Originally Posted by msilagy
Go to Bankrate.com and search highest CD rates and Money Markey Savings rate. Check the Bank's rating and be sure they are insured for the amount you invest. Been doing this for many years and the returns are way higher than local banks.
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The CD rates at bankrate.com are higher than local banks, but not higher than the brokered CDs that you can buy from Fidelity. Using the highest rates on bankrate.com means that you will be switching from one online bank to another to chase the highest rate every time a CD matures. If you have a Fidelity account, you have access to many CDs from many different banks that Fidelity will manage in one account. Also, with a brokered CD, you can liquidate the CD at any time at the current market value, which gives you more flexibility in managing your portfolio. You also get one consolidated 1099 tax form for all of your Fidelity investments. I really don't see an advantage to shopping for the highest CD rates on bankrate.com or doing business with non-local online banks at all. The only business I do with a bank is to have a credit card, a checking account, and for electronic bill pay. Any local bank can handle those transactions very well. If I want to earn interest, I use my Fidelity or Vanguard account.