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Old 11-26-2008, 06:35 PM   #21
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Originally Posted by cardude View Post
Also, the credit union current money market rates are 2.39% for 100k, or 2.69 for over 350K. Are these money market funds guranteed 100K as well? Why would you put 350K in their money market if it was not guaranteed?

I've got 670K total cash I need to do something with, and I want it safe.

Be careful here! You are only covered up to 250,000 (or $100,000 when the levels revert) per account -- so if you have deposit accounts at the credit union in your name, they only cover you for the total of accounts up to $100k or $250k currently. See the NCUA website for further details.

That means you need to split your investment among several institutions. The simplest way to do that is through your broker, that way as the CDs mature you can direct new investments. Through your credit union (or if you were to identify a few banks with reasonable rates that you wanted to do business with) you need to liquidate the investment during a grace period or they will rollover at the current rate.

See for banks with current rates.

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Old 11-27-2008, 10:03 AM   #22
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Buying FDIC guaranteed CD's from troubled institutions is a way to boost your yield. As long as you are under the limit ($100k or whatever) you are safe. I got some great deals via Schwab on Indymac CD's last year. Brokered CD's are a quick way for an institution to get a lot of bucks in a hurry. I read somewhere that these can be a sign of trouble to regulators.
One of my friends has someone manage his money. They put him into very "safe" Fannie and Freddie preferred, and Lehman bonds.

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