Wells Fargo & Co. this week began offering certificates of deposit issued by other banks and savings and loans through its securities subsidiary.
So-called brokered CDs, which are primarily sold through brokerage houses, let customers whose deposits exceed the maximum $100,000 per institution covered by the Federal Deposit Insurance Corp. buy CDs in one place.
Banks typically offer only their own CDs, said Les Dinkin, director of Oliver, Wyman & Co., a financial services consulting firm in New York.
Dennis Mooradian, president of Wells Fargo Securities and executive vice president of private client services at the bank, said the program would help Wells' clients get the best rates. The minimum purchase per client is $25,000 or $1,000 for individual retirement accounts, the banking company said.