SpringMan wrote:Assuming money is invested is in an IRA (or 401k, 403 etc) it is not so easy. Brokered CDs are different than bank CDs, they go up and down with interest rates just like bonds. I know banks and credit unions offer IRA accounts but they often have high fees just to maintain them. Switching IRA custodians, chasing the best CD interest rate sounds like too much hassle IMO.
I have quite a few retail IRA CDs (laddered). Over the years, with many banks/CUs, I've never been charged a maintenance fee. There is usually a modest fee (generally $25 or thereabouts) to close and transfer the funds on maturity, but that's it. Maybe I've been lucky.
As to switching custodians (aka a custodian-to-custodian transfer) and searching for "best rates", I suspect it is a put-off for some. I admit to a certain trepidation back in 2006 when I constructed my first IRA CD ladder. It's easier after you've done a couple of transfers, and rolled a few rungs.
That said, I am not a fan of brokered CDs, either.