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January 12, 2008

How to Get Your Money Back From A Brokered CD

Filed under: Highest CD Rates — admin @ 4:52 am

It is unavoidable to end up investing your money in a brokered certificate of deposit account. This is quite true particularly to older investors who haven’t read between the lines of the agreement with the broker.

If you are not decisive about investing in a brokered certificate of deposit, do not force yourself into believing that it will work for you. Although sometimes people end up investing their money in this type of CD account without fully understanding the terms and conditions; hence, they end up withdrawing their money prior to maturity.

A long-term certificate of deposit usually matures after 15 to 20 years. If you are unsure about this term, do not invest. If you have invested in one, you can try and take steps in getting your money back.

Brokered Certificate Of Deposit - 4 Simple Steps To Getting Your Money Back

First of all, don’t be ashamed of trying to get back your funds after investing in a long-term CD account. It can happen to anyone and as mentioned earlier, it can happen by mistake or because of misunderstanding.

You can always complain to the broker who sold you the CD. The earlier you do it, the earlier it will be resolved.

1. Talk to the broker. When you talk to the broker, you should explain your concerns particularly the misunderstanding on the CD’s tenure. Tell the broker about your plan of resolving this issue and how early you want it resolved.

2. If the broker cannot help you, talk to the manager. Brokered certificate of deposits are considered third party investment avenues. When the broker failed to help you, you should take action right away and talk to the manager of the firm. As always, discuss your issue and how you want it resolved.

3. If the manager still cannot help you, write and send a letter to the firm’s compliance department. Indicate your main concern and how you want it to be resolved. Request a response letter from the compliance department within 30 days.

4. If after receiving a response letter you are still not satisfied, you should write to the US Securities and Exchange Commission. You can also write to the FAC, just make sure you indicate all the necessary information in order for them to help you.

There is a downside to this issue though, no matter how hard you try and complain and follow up. A brokered certificate of deposit is already costly to start with since you are paying the firm a portion of your CD’s interest. Once you complain, you are compromising your fund’s ability to profit.

There are cases where issues such as these were never resolved. Brokered certificate of deposit accounts poses some risks compared to bank CD accounts. You need to remember that it is your word against the firm’s, and somehow these cases end up in money losses.

As a tip, if you have already invested your money in a brokered certificate of deposit, try discussing all possible solutions that can help boost interest and profit rather than getting your money before maturity.

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Highest CD Rates - Find the Best CD (Certificate of Deposit) Rates

January 12, 2008

How to Get Your Money Back From A Brokered CD

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