Quote:
Originally Posted by Boomer
Today was the first time I have run into Blue Sky when buying brokered CDs.
I looked up what they are but I am still not clear.
The bank was Third Federal and I wanted a 3 month.
Call protected? Check
FDIC? Check
But when I submitted “Buy” Blue Sky popped up for Ohio, TX and FL.
I tend to buy the brokered CDs from banks I have actually seen as bricks and mortar and I have seen Third Federal.
But what happened that I cannot buy a CD from them?
I bought the CD from a different bank after the Blue Sky blocking appeared but I want to know specifically why that happened.
Third Federal has been around for a while and I have never heard of any issues with them.
Boomer
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Not all CDs are available in every state. Each state has its own set of laws to offer securities for sale in its state, and those laws are referred to as Blue Sky laws. As a result, a state restriction is known as a Blue Sky restriction and will vary by the issuing bank and offering.
As long as your full amount is FDIC insured, bricks and mortar or digital are no different.