Brokered certificates of deposit (CDs), typically insured by the Federal Deposit Insurance Corp., offer flexibility without early withdrawal penalties associated with traditional CDs. However, if you decide to withdraw funds from a brokered CD before its maturity, you must sell it on the brokerages secondary market. Depending on the prevailing interest rates at the time of sale, you may receive less or more money than your initial investment.
It’s important to note that your CD may be callable, which means that if interest rates decrease, the brokerage firm may choose to redeem or sell your CD prior to maturity. While you’ll receive your deposit back, any potential future interest earnings will be forfeited.
Roxann Cooke, Senior Director of Consumer Banking at Chase, advises against making checks payable to cash to prevent unauthorized deposits. Instead, always write the name of the intended recipient.
Guard your personal information when writing a check. Avoid including sensitive details such as your driver’s license number or Social Security number that can potentially be used for identity theft.
If mailing a check, use a security envelope that features a crosshatch pattern on the interior to protect its contents. Alternatively, if using a standard envelope, wrap the check in a piece of paper before inserting it.
Cooke recommends mailing checks at a post office instead of placing them in a home mailbox, where they may be vulnerable to theft. For additional security, especially when making large payments, consider sending the check via certified mail, requiring a recipient’s signature upon delivery.