Putting one's money into CDs

[Donn2390]

Originally Posted by forest beekeeper

???

The banks that failed in 1991, were never supported by the FDIC?

Are you sure?

FDIC: Unclaimed Funds

The FDIC websites has a whole thing there for tracking each depositor from all banks that have failed since the 1940s. So many banks have failed, and FDIC appears to be in the business of trying to locate who gets their funding.

So why are you saying that nobody has ever tried to get their insurance money from the FIDC?

The problems in 1991 were not banks, it was the were S&L's. The S&L's were covered by by FDIC, and it cost the goverment, you and I, a fortune. The S&L were only coverd to 70%, until the stuff hit the fan, and Jimmy Carter raised it to 100%.

[Submariner]

Originally Posted by Donn2390

The problems in 1991 were not banks, it was the were S&L's. The S&L's were covered by by FDIC, and it cost the goverment, you and I, a fortune. The S&L were only coverd to 70%, until the stuff hit the fan, and Jimmy Carter raised it to 100%.

Just to clarify matters, when you say that it cost the government and then 'you and I'; It may have cost the government, and by extension it may have cost the tax-payers.

By extension it may have cost you, as a tax-payer.

However I am technically not an income tax-payer, so politely it did not cost me a dime.

Sorry about the confusion.

I file income taxes each year, however no money comes out from my paychecks to the IRS. Nor do I have any tax obligation when I file my taxes. So technically I am not a tax-payer, I only file taxes.



On topic; I do not see CDs as being a smart investment. They do not have a high rate of return. They offer no tax advantage, and they will not shelter any of your earned income from taxes.

[LongArm]

Originally Posted by car54

I've always been told that each depositor is covered up to 100K, so on a joint account, that's 200K that is covered by FDIC.

True or false?

Each despositer, per bank, is covered up to $100k. So, yes, on a joint account, $200k is covered (unless the depositers have additional accounts at the same bank).

Originally Posted by travelmate38

I would like to know more about this FDIC thing? If I have $175,000 in a private money market account in a mid-sized local bank am I insane? Can my money really disappear? How does one really protect their cash then? Stuff a mattress? Come on now....

Open accounts at multiple banks, open an account with a brokerage that brokers CDs, etc. from multiple banks, or open a trading account with a brokerage where the coverage is at least $500k (and often more than that with additional private insurance).

[LBSer]

FORGET cdS. put it in a savings acct. on a credit union bank. alliant has 4.7% APR in savings same as their IRA accts. i get monthly dividends and i computed my yearly dividend as $228. of course you can have higher dividend if you have higher balance monthly. and forest beekeeper is right on them NOT sheltering your income in taxes. i am looking to invest too. but i am not sure how and where.