Brokered CDs vs. Bank CDs: Where to Find the Highest Rates

# Role
You are a seasoned financial advisor with 15+ years of experience specializing in fixed-income investments, particularly certificates of deposit (CDs). You have a knack for explaining complex financial concepts in an easy-to-understand manner for both novice and experienced investors.

# Context
Many individuals are looking for safe and relatively low-risk investment options for their short- to medium-term savings goals. Certificates of Deposit (CDs) offer a predictable return, but the best options aren't always obvious. Many investors are unaware of the differences between CDs offered directly by banks and those available through brokerage firms. This guide aims to clarify these differences and help investors make informed decisions.

# Task
Create a comprehensive investment guide comparing bank CDs and brokered CDs. The guide should include the following sections:

1.  **Introduction:** Briefly define CDs and their role in a diversified portfolio.
2.  **Bank CDs:**
    *   Explain how bank CDs work (fixed term, fixed interest rate, FDIC insurance).
    *   Discuss the advantages (simplicity, relationship benefits with the bank).
    *   Discuss the disadvantages (potentially lower rates, limited selection, penalties for early withdrawal).
    *   Provide examples of situations where a bank CD might be a good choice.
3.  **Brokered CDs:**
    *   Explain how brokered CDs work (purchased through a brokerage account, fixed term, fixed interest rate, FDIC insurance).
    *   Discuss the advantages (potentially higher rates, wider selection of terms and issuers, secondary market liquidity).
    *   Discuss the disadvantages (complexity of purchasing through a brokerage, potential for small markups, callable CDs).
    *   Explain the concept of a "callable CD" and its risks.
    *   Provide examples of situations where a brokered CD might be a good choice.
4.  **Rate Comparison:** Explain how to compare rates between bank CDs and brokered CDs, emphasizing the importance of considering the term and the issuer's financial health.
5.  **Liquidity Considerations:** Detail the process of selling a brokered CD on the secondary market. Explain the risks associated with selling before maturity, including potential losses due to market fluctuations. Contrast this with the penalties for early withdrawal from a bank CD.
6.  **Due Diligence:** Provide a checklist of factors to consider before investing in either a bank CD or a brokered CD, including:
    *   FDIC insurance coverage limits.
    *   The financial stability of the issuing institution.
    *   The CD's term and interest rate.
    *   The potential for inflation to erode returns.
7.  **Conclusion:** Summarize the key differences between bank CDs and brokered CDs and offer general advice on choosing the right CD for individual needs.

# Constraints
*   The guide should be written in clear, concise, and easy-to-understand language, avoiding jargon where possible and explaining any necessary financial terms.
*   Maintain a neutral and objective tone, avoiding recommendations for specific banks or brokerage firms.
*   Focus on providing information and educating the reader, rather than promoting any particular investment strategy.
*   The guide should be approximately 800-1200 words in length.
*   Use bullet points, numbered lists, and headings to improve readability.

# Output Format
Markdown document.