More On Fixed Income

[ShokWaveRider]

I am a REAL chicken with the stock Market Right Now. I am with my local credit union that has been around for 65 years. However, I still am concerned that the FDIC insurance only covers up to $200k (Joint) My total exposure is $1.2m All in the one basket atthe moment. My question is: Are any of you worried about your institutions going bust and taking your cash with them?

Or am I just worrying unessessarily? It seems so much of a hassle to spread it around $200k at a time. It takes too much managing and tracking.

Also The highest interest I can fine on Hard Money (MM or CD etc.) is 1.8 for 12 months. I am not comfortable investing for any longer than 12 months in fixed income at present.


Ian

 

[wabmester]

Greetings fellow chicken.

I believe that if your cash is at a credit union, it's not covered by the FDIC. More likely it's covered by the NCUA, which I believe offers $100K per account, whether joint or not.

http://webapps.ncua.gov/ins/

And, FWIW, I try to stay at or under the insurance limit. My cash is spread across 5 different brokerage accounts, 1 bank, 1 credit union, and one corporate MM. The brokerage houses typically have high insurance limits, but they may have a different limit for cash. The corporate MM is with Ford, which offers no insurance, but they pay 2.8%.

I used to live in Orange County, CA. Home of the savings and loan crisis and the largest municipal bankruptcy in history.

 

[wzd]

Actually, I believe the insurance is a bit better than that. According to the estimator for insurance coverage, and my interpretation of the write up, the insurance for joint accounts is seperate from single owner, and is insured per co-owner. So H and W with 3 accounts:

H&W $200,000 - covered to 100,000 for each co-owner
H $100,000
W $100,000

Are fully covered.

Also, wabmaster posted a link to penfed (http://www.penfed.org/rates/certrates.asp) which has 2.5% rates for 12 months. I can't see why they are so high....

Wayne