Comments on: What Happens to Your CDs When a Bank Fails? http://www.fivecentnickel.com/2008/08/08/what-happens-to-your-cds-when-a-bank-fails/ personal finance tips, tricks, and commentary Sat, 21 Nov 2009 22:51:28 -0500 http://wordpress.org/?v=abc hourly 1 By: #1HB4DB http://www.fivecentnickel.com/2008/08/08/what-happens-to-your-cds-when-a-bank-fails/comment-page-1/#comment-121202 #1HB4DB Wed, 13 Aug 2008 13:34:02 +0000 http://www.fivecentnickel.com/?p=1714#comment-121202 This post rings true for me- I bought an IndyMac CD at 4.35% the DAY before it failed. I received a statement in the mail over the weekend, and sure enough, I'm earning my interest. I'm comforted knowing that should another bank come in and take over the assets of the new IndyMac Federal Bank, I will have the option of withdrawing my funds if they propose a lower rate. Until then, I'm safely earning the highest yield out there. This post rings true for me- I bought an IndyMac CD at 4.35% the DAY before it failed. I received a statement in the mail over the weekend, and sure enough, I’m earning my interest. I’m comforted knowing that should another bank come in and take over the assets of the new IndyMac Federal Bank, I will have the option of withdrawing my funds if they propose a lower rate. Until then, I’m safely earning the highest yield out there.

]]> By: BankAround http://www.fivecentnickel.com/2008/08/08/what-happens-to-your-cds-when-a-bank-fails/comment-page-1/#comment-121047 BankAround Mon, 11 Aug 2008 15:01:47 +0000 http://www.fivecentnickel.com/?p=1714#comment-121047 Thanks for the post. I think it's important for people to understand and not to cause a panic by going to the bank and taking out money on any little rumors. Thanks for the post. I think it’s important for people to understand and not to cause a panic by going to the bank and taking out money on any little rumors.

]]> By: Mark Nelson http://www.fivecentnickel.com/2008/08/08/what-happens-to-your-cds-when-a-bank-fails/comment-page-1/#comment-121036 Mark Nelson Mon, 11 Aug 2008 13:38:43 +0000 http://www.fivecentnickel.com/?p=1714#comment-121036 The bank crisis certainly has people a little nervous. It will be interesting how this all shakes out. The bank crisis certainly has people a little nervous. It will be interesting how this all shakes out.

]]> By: Dividend Growth Investor http://www.fivecentnickel.com/2008/08/08/what-happens-to-your-cds-when-a-bank-fails/comment-page-1/#comment-120921 Dividend Growth Investor Sat, 09 Aug 2008 22:24:38 +0000 http://www.fivecentnickel.com/?p=1714#comment-120921 That's a good thing to know that you can get the highest yielding CD out there and even if the bank fails, as long as you have less than $100k invested there you will walk away safely. That’s a good thing to know that you can get the highest yielding CD out there and even if the bank fails, as long as you have less than $100k invested there you will walk away safely.

]]> By: Chris Desmond http://www.fivecentnickel.com/2008/08/08/what-happens-to-your-cds-when-a-bank-fails/comment-page-1/#comment-120888 Chris Desmond Sat, 09 Aug 2008 13:55:24 +0000 http://www.fivecentnickel.com/?p=1714#comment-120888 Hey Nick, do me a favor and prominently post the date on your blog entries. I find it useful to click on related past entries that you list at the bottom of your daily entries, but irritating that I cannot quickly tell when you wrote them. Some entries, like milk, have a "sell-by" usefulness date. Put another way, I want to know how "stale" your product may be before I invest my time to read it. On another note, I had $103,500 CD at IndyMac Bank when it failed. It took until 8/8/08 for the FDIC to call and inform me that, due to the way I had the account configured (held within a trust with 4 beneficiaries), it was 100% insured. Even at that, I had to first send in an account-ownership-affirmation letter. So, I'm relieved. Even better, I can now liquidate the CD without penalty, or leave it there, with the 4.01% APY term unchanged, until its 10/20/08 maturity date. Hey Nick, do me a favor and prominently post the date on your blog entries. I find it useful to click on related past entries that you list at the bottom of your daily entries, but irritating that I cannot quickly tell when you wrote them. Some entries, like milk, have a “sell-by” usefulness date. Put another way, I want to know how “stale” your product may be before I invest my time to read it.

On another note, I had $103,500 CD at IndyMac Bank when it failed. It took until 8/8/08 for the FDIC to call and inform me that, due to the way I had the account configured (held within a trust with 4 beneficiaries), it was 100% insured. Even at that, I had to first send in an account-ownership-affirmation letter. So, I’m relieved. Even better, I can now liquidate the CD without penalty, or leave it there, with the 4.01% APY term unchanged, until its 10/20/08 maturity date.

]]> By: MITBeta @ Don't Feed the Alligators http://www.fivecentnickel.com/2008/08/08/what-happens-to-your-cds-when-a-bank-fails/comment-page-1/#comment-120810 MITBeta @ Don't Feed the Alligators Fri, 08 Aug 2008 13:11:58 +0000 http://www.fivecentnickel.com/?p=1714#comment-120810 I can provide first hand corroboration about the Netbank --> ING transfer. I had 5 CDs with Netbank that were transferred relatively quickly to ING. Soon thereafter I got a notice that the rate was going to change (go down, of course) and that I could withdraw my money with no penalty. It made sense to withdrawn 2 of the longer term CDs since I could find better deals elsewhere, but the shorter term ones stayed. I can provide first hand corroboration about the Netbank –> ING transfer. I had 5 CDs with Netbank that were transferred relatively quickly to ING. Soon thereafter I got a notice that the rate was going to change (go down, of course) and that I could withdraw my money with no penalty. It made sense to withdrawn 2 of the longer term CDs since I could find better deals elsewhere, but the shorter term ones stayed.

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