I have a sister that will only use CDs. She used to run around to different banks and use different beneficiaries to keep 100% FDIC coverage. I finally convinced her to open a Schwab brokerage account (at a brick-and-mortar office) and she has a trader there buy her CDs at various banks and set up reinvestments. So at least she has a one-stop shop where a human can help get what she wants.
Another alternative I tried (and failed) was for her to use Interactive Brokers, since they pay ~0.50% under overnight rate on cash balances. They have a program to opt-in where they send $250k to various banks every night, to get FDIC coverage. They even have a bank list, so you can select banks to exclude (like if you had a CD there already). They don't have physical offices tho.
Just nothing you can do sometimes but help people get what they want/need to sleep at night, even if it's not what we might do.
Another alternative I tried (and failed) was for her to use Interactive Brokers, since they pay ~0.50% under overnight rate on cash balances. They have a program to opt-in where they send $250k to various banks every night, to get FDIC coverage. They even have a bank list, so you can select banks to exclude (like if you had a CD there already). They don't have physical offices tho.
Just nothing you can do sometimes but help people get what they want/need to sleep at night, even if it's not what we might do.
Statistics: Posted by MGC — Thu Sep 11, 2025 11:56 am — Replies 3 — Views 156