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
IndyMac Bank has taken a turn for the worse, but they are confident they will whether this storm as they have weathered others. Of course, they have to be confident or all of the stockholders would sell their shares. They already had a small run on the bank. Here is a link to the most recent press release, as well as, one from about a week ago.
July 7, 2008 Press Release
June 30, 2008 Press Release
One thing to note, is for the moment they are unable to accept brokered deposits. This may mean some nice internet only rate specials. Keep a watch out. (some are noted below)
They are currently offerning a special on-line only money market account for 4% APY.
They also have high interest CD Rates.
| 3-Month CD
| 3.70% |
| 9-Month CD
| 4.00% |
| 10-Month CD
| 4.00% |
| 2-Year CD
| 4.65% |
As noted, they are having financial problems. Be sure to stay under the FDIC insurance limits. They are a very large bank and I’m sure the FDIC is doing everything they can to ensure they don’t fail. But, be wise. IndyMac’s FDIC# is 29730 and you can view their current CD rate here.