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[explanade]

I'm under $100k but was tempted to try to set up POD accounts for more.

They were giving out 5% for 12-months.

I knew this was a distinct possibility but I figured at worst, FDIC gives me money money back and I end up with a lower interest account.

 

[Art G]

The people pulling out money over $100k is what caused WaMu to be in the immediate danger they were in. The sale was forced because the Government is trying its darnedest to avoid getting FDIC involved.
Again, assuming FDIC does have to get involved in numerous banks, the odds of getting your $100k returned quickly goes down and down and losing out on interest.
Ahhhhh, so many doubters, so few to learn.

 

[DallasGuy]

I'm under $100k but was tempted to try to set up POD accounts for more.

They were giving out 5% for 12-months.

I knew this was a distinct possibility but I figured at worst, FDIC gives me money money back and I end up with a lower interest account.

I just learned about the POD account setup to increase my FDIC insurance about a month ago. For those of you who have more than 100,000 at a given bank, just add POD's to your CD's and have the title changed to include "POD" and you'll be covered for more than 100k. (see the FDIC website for information)

I have $143,000 at one bank as an individual and changed my CD's there to add 3 POD's (sister, brother and mother), added "POD" to the CD account titles and I now have $300,000 FDIC coverage. I'm not sure why more people don't do this, now that I know about it. I will set up all future CD's in my name to include POD's.

 

[ziggy29]

Again, assuming FDIC does have to get involved in numerous banks, the odds of getting your $100k returned quickly goes down and down and losing out on interest.
Ahhhhh, so many doubters, so few to learn.

And if that happened, a lot of annuities would be toast, too.

 

[Art G]

And if that happened, a lot of annuities would be toast, too.

BWHAHAHAHAHA! Gotta love the hata's!
Yes, and no. Annuities don't fall under FDIC, but 'tis true, if the market totally tanks and insurance companies go under, all that you'd get back is the current value of your account and your guarantee would mean nothing. Even more reason, (which I had suggested months ago) to choose your annuity company very carefully.
I forget, was this another variable annuity discussion thread?

 

[OAG]

The FDIC protection wasnt even used, so even deposits over 100k are still fine.

No word on whether they'll give you your CD money back, offer a lower rate or continue paying the rates given by Wamu.

Really, quite the horror show. Just like buying high risk bonds. Same thing, right?

IF they propose to cut the rate or terms of an existing CD you are entitled to withdraw your Principal (100%) AND any accrued interest at least as of yesterday WITHOUT penalty of any kind. Of course they may honor the existing rate and term in which case the only thing that changes is the letterhead.