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> But imagine the overhead of opening and keeping track of those. How many accountants will you need to have on staff full time? And lots of banks charge a mont
by brianpgordon 8y ago
> But imagine the overhead of opening and keeping track of those. How many accountants will you need to have on staff full time? And lots of banks charge a monthly fee if you aren't making transactions every month.
Many retail brokerages will sell you CDs commission-free and keep track of everything for you. They get a commission from the bank for selling them to you. Schwab has a CD search tool with results that keep going page after page after page. I'm sure if you had a billion dollars they'd be happy to have a broker make the purchases for you.
- ww520 8y agoCD is as risky as the issuing bank. If the bank bankrupted, the CD money is gone, down to the FDIC insured amount.
- brianpgordon 8y agoWhat? Obviously I'm not saying that you'd buy more than $250k of CDs at a single bank. Where are you coming up with this?
- jjeaff 8y agoThen you are back to the original problem of the overhead of managing 4,000 different CDs. I think you'll negate any gains and maybe likely lose money.