CD insurance question

Usually they are, but your broker should be able to provide the information for any specific offering.

However, keep in mind that if you buy CDs from the same bank from different brokers, all of the accounts/CDs that you have with that bank are combined when determining the limits on FDIC coverage.

The act of brokering does not mean they cannot. For example, all the brokered CDs available through Fidelity (at least to retail customers) are FDIC-insured.

However, I wouldn't assume that a brokered CD automatically is FDIC insured if it's left unstated. Ask your broker and specifically ask about the FDIC status of the CD.

-- Rich Carreiro snipped-for-privacy@rlcarr.com

In fact, the FDIC has a whole array of procedures specifically targeted at the brokers who act as agents for other depositors. FDIC insurance on brokered CDs is quite the norm. In fact, keeping CDs below the FDIC limits but having only to deal with one broker instead of many banks is one of the reasons for them in the first place.

Note that in the event that the bank in which your brokered CD is deposited goes bust, there may be delays getting at that money - delays which don't affect folks who dealt directly with the bank.

You can find some info about it on the FDIC site (read, for example, some of the notes about actual failed banks and access to deposits). And plenty by googling something like "FDIC recover brokered CD".

Anyway, just like dealing directly with the banks, it's up to you, the customer, to make sure that you don't have deposits exceeding the FDIC limits at any single bank - and that includes CDs held through brokers.