Fidelity offers brokered CDs by Morgan Stanley, wells Fargo bank etc for around 5% for upto 18 months , says it is FDIC insured, are they safe?#personalfinance #investments
Yes. They follow the normal 250K FDIC limit (overall for a given issuing bank - so if you have a separate Wells Fargo acct, that balance gets added to whatever brokered CD you get from Wells Fargo on Fidelity - when calculating your total FDIC insured capital)
Cds by a company like Fidelity are among the safest things you can get as long as you stay under the FDIC limit. They can get hammered by inflation, but I'd hope you expected that.
Safe. Just bought a one year ladder and I plan to purchase ladders monthly. Interest rate is from 4 - 4.7%.
Limit 250k, take advantage of that