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FDIC Increases Insurance Limit

Administrator — Wed, 08 Oct 2008 05:55:22 +0000

On October 3, 2008, President Bush signed the Bail-out plan into law. Part of the package was an increase in the FDIC insurance limit to $250,000.00. At this time, however, it is only temporary. This part of the plan is set to expire on 12/31/2009.

In the meantime, as long as you keep the maturity of any new CDs before or on 12/31/09, you can increase your deposits at banks you already have funds at to a maximum of $250,000.00. Review your portfolio of CDs. Many of the current bank rates you have will still be paying a top CD rate. Go ahead and put more funds there.

If you are opening up jumbo CDs, just make sure you keep the principal and interest below the new FDIC insurance limit of $250,000.00. That way it is all insured.

Good luck and happy jumbo CD rate hunting.

CD Rates In USA

FDIC Certificates of Deposit

Administrator — Fri, 04 Jul 2008 00:07:01 +0000

Before sending any money to a bank or credit union make sure they are federally insured. To ensure the safety of your deposits, bank should carry FDIC insurance and credit unions should carry NCUA insurance. Certificates of Deposit are a popular investment because your funds are insured by the governement up to $100,000 for an individual. Certain account types may be able to be insured above that. For instance, IRA CDs are insured up to $250,000.

First, check the financial institution’s website. A bank should display the FDIC logo and a credit union should display the NCUA logo. Second, visit the FDIC Institution Directory or the NCUA Credit Union Query respectively. You can also call the FDIC at 877-ASKFDIC (877-275-3342) and the NCUA at 800-755-5999.

Both sites allow you to search by city, state, and/or name. After verifying they are federally insured you can also look up their financial standing. This data is usually about 3-months behind. If you want to read a report about the bank or credit union BankRate.com offers a pretty good one at Safe&Sound Rating.

Building a CD Ladder

Administrator — Wed, 02 Jul 2008 01:17:03 +0000

During this time of certificate of deposit rate uncertainty, it is good to examine a strategy that can protect your CD Investments from the extreme lows of the rates, yet provide opportunity to take advantage of higher rates.
CD Laddering is that strategy.

View the full CD Ladder article.