Brokered Deposits Law and Legal Definition
A brokered deposit is a large denomination deposit placed in a savings institution by a broker. The deposit is similar to a certificate of deposit. A brokered deposit is sold by a bank to a broker who divides the deposit into smaller pieces for sale to customers. A characteristic feature of a brokered deposit is the higher rate of interest and federal insurance. The deposit allows persons with less income to pool their money and earn the higher rates of interest. The broker charges fee for his/her service.