High Yielding Certificates of Deposit Warning
many investors who have taken a beating through the stock market or other types of investments with negative returns have been salivating over CD rates that are offered through Insurance agents and Brokers which appear to be legit. Some of these certificates of deposits are a dangerous investment though and have left some well short of satisfaction, and others with something they never bargained for.
How does it work? The first tactic used by Brokers or Agents is to advertise high-yield CDs to get you in the door, then try to sell you fixed annuities or other income investments. Something you don’t want right. What about that CD you saw an ad for which boasts over 6% in return? Be very careful, because many times what you saw was a misworded ad which offers you something that is not FDIC insured. Some will say the rate is promotional and then move you into something else that appears to be a CD but is not.
So always keep in mind. When you look at a high yielding CD and want to be safe about it, make sure you confirm that it is FDIC covered, and also that it truly is a Certificate of Deposit that is legit.
