Current CD I signed up one year ago at just over 5% will soon expire

[OAG]

just deleted the URL as I see the latest post regarding no spam...I am not sure what OAG meant indicating URLs are posted here all the time....sorry...

Sorry if I mislead you but in hindsight all the URL's I have seen have been ones the poster had no financial interest.

Although I have seen some directions to a personal web site in the tag line of some people's signature area.

Mod: thanks for the clarification, did not mean to step on the mod turf.

 

[Zoocat]

Why, they are FDIC insured?

From The Economist, Aug 14, 2008, writing about Option ARMs recasting:

Delinquencies are already rising fast. Write-offs for option ARMs at Washington Mutual, a stumbling thrift, have zoomed from 0.49% in the last quarter of 2007 to 3.91% in the second quarter.

American housing 2 | Ticking time bomb | Economist.com

National City is another bank under pressure. People invested their cash at Indy Mac because of their higher interest rates. There's a reason for those higher rates, more risk. Also, I wouldn't lock in 5.25% for four years. IMH, from what I've read, interest rates will be going up.

 

[friar1610]

I needed to put cash into four CD's of varying maturities recently to neaten up my bond/CD ladder. I checked on-line and found that Discover Bank offered the best rates given the fact that I didn't want to deal with several different institutions and wanted them all in the same place.

 

[FinanceDude]

National City Bank is offering 5.25% for minimum $10K investments for four years.

They need to, they are undercapitalized and poorly managed.......

I wouldn't touch them with a 10-foot pole.........

 

[cute fuzzy bunny]

Eh, so whats the worst thing that happens? They close, the FDIC takes over, your cd gets transferred to another bank at the same rate, and except for a couple of exciting days your interest rate checks continue to show up?

 

[2B]

Eh, so whats the worst thing that happens? They close, the FDIC takes over, your cd gets transferred to another bank at the same rate, and except for a couple of exciting days your interest rate checks continue to show up?

The acquiring bank has the option of cashing in the CD and offering to renew at a lower rate. I do agree that this isn't a disaster.

 

[Achiever51]

Hey, as long as your total deposits are below the FDIC max, it shouldn't be too disruptive if your bank goes belly-up. Here's a link to the FDIC insurance calculator to figure out if all your deposits are covered:

FDIC: Electronic Deposit Insurance Estimator (EDIE) – Online Version

 

[FinanceDude]

Eh, so whats the worst thing that happens? They close, the FDIC takes over, your cd gets transferred to another bank at the same rate, and except for a couple of exciting days your interest rate checks continue to show up?

You crack me up....putting money in crappy banks just to get a half percent more in interest on a CD?



Don't worry, FDIC's war chest is down 12% after the IndyMac fiasco, so a few more big banks that fail won't be a problem..........

 

[Art G]

Here's a gift for you all.....

Bank or Credit Union Star Ratings

 

[Art G]

Eh, so whats the worst thing that happens? They close, the FDIC takes over, your cd gets transferred to another bank at the same rate, and except for a couple of exciting days your interest rate checks continue to show up?

I'm thinking this is tongue in cheek? The worst thing? You buy a one year CD, the bank goes belly up, the interest stops the day this happens and it takes you ten years to get back your principal.

 

[REWahoo]

... and it takes you ten years to get back your principal.

I'm thinking this is tongue in cheek?

 

[cute fuzzy bunny]

You crack me up....putting money in crappy banks just to get a half percent more in interest on a CD?

Hey, I didnt say that *I'd* do it.

Remember, I'm the guy that was stuffing his pants full of 6.25% cd's when rates were good, rather than chasing yields when rates are low...

 

[FinanceDude]

Hey, I didnt say that *I'd* do it.

Remember, I'm the guy that was stuffing his pants full of 6.25% cd's when rates were good, rather than chasing yields when rates are low...

Kinda like the truck I backed up on 5% coupon double tax exempt general obligation bonds a few months ago...........

 

[cute fuzzy bunny]

Financial instruments are way more interesting in your pants than in a truck.

I just thought of a great Dr. Seuss-like story, but I think i'll keep it to myself.

 

[danno1]

Reviving this old thread

I recall someone indicating to report back anything positive I find from my banker upon my CD expiring. Well, it expires next month and a couple weeks ago I wrote to the lady at the bank (via email) that I'd like to continue the CD at the same 5.210 interest rate for another year.
She responded a few days later with: When it matures I will ask our CEO or
CFO if we can keep the same rate and conditions<smile>. I will do my best!!
I will be contacting you on 12th. Have a great weekend. The weather is
supposed to be beautiful. Let's keep our fingers crossed!!

Whether this is a positive sign, remains to be! But I thought I'd report back.

TheRetirementWebsite.com - http://thinktowealth.com/

 

[2B]

I recall someone indicating to report back anything positive I find from my banker upon my CD expiring. Well, it expires next month and a couple weeks ago I wrote to the lady at the bank (via email) that I'd like to continue the CD at the same 5.210 interest rate for another year.
She responded a few days later with: When it matures I will ask our CEO or
CFO if we can keep the same rate and conditions<smile>. I will do my best!!
I will be contacting you on 12th. Have a great weekend. The weather is
supposed to be beautiful. Let's keep our fingers crossed!!

Whether this is a positive sign, remains to be! But I thought I'd report back.

TheRetirementWebsite.com - http://thinktowealth.com/

I have a CD in a bank that was taken over by the FDIC. So far, I've missed one interest payment and don't have any idea where the CD stands. Things could be worse!

 

[FANOFJESUS]

Here's a gift for you all.....

Bank or Credit Union Star Ratings

Thank You!

 

[danno1]

2B - VERY SCARY about your CD. This has me wondering . . . could it be a reflection of the current goings-on with the situation that our banking system is going through? Not to sound paranoid, but this should be looked into. If you missed a payment for that CD, you definitely absolutely should contact your manager for that specific CD...and anything due you (being late), ought to have MORE interest added. Be proactive! Thanks for that link btw REC7.

http://www.thinktowealth.com - TheRetirementWebsite.com

 

[OAG]

Here is another rating agency for Banks and Credit Unions (Safe and Sound): Bankrate.com -- Safe & Sound (tm): Bankrate's free rating system for banks, thrifts, credit unions

But, remember, no matter what the rating there is no guarantee by either of the rating agencies, it is still Buyer Beware (or, in this case your are the LENDER).

 

[2B]

2B - VERY SCARY about your CD. This has me wondering . . . could it be a reflection of the current goings-on with the situation that our banking system is going through? Not to sound paranoid, but this should be looked into. If you missed a payment for that CD, you definitely absolutely should contact your manager for that specific CD...and anything due you (being late), ought to have MORE interest added. Be proactive!

I've contacted ETrade. It's a brokered CD so it has the additional issue of going through an extra level of paperwork. Their response is that it takes about a month for these things to sort out and the money will show up in my account.