Brokered CDs are highly flexible and enable credit unions to issue instruments with
the maturities and issue sizes that correspond to their individual needs, at rates that
are generally less expensive than other wholesale funding alternatives. The CDs
issued may provide fixed or variable rates, maturities ranging from 30 days to
10 years, and monthly, semi-annually or at-maturity interest payment schedules.
Brokered CDs can also reduce an institution's liquidity risk by providing a
competitive substitute for Federal Funds, FHLB advances, or corporate
credit union advances.