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Question : Thinking about a CD. How safe are the non-brick & mortar banks like eLoan or NetBank for opening up CDs?
For example, these guys have some 5+% rates for 18-24 month CDs, while B of A, where most of my money sits, can only do like 4.8%. I guess by "safe" I mean: Is there any more risk of loss with these online banks than with a B of A type bank, or does FDIC pretty much cover me no matter the institution?
- asked by common sense
All Answers: Answer #1i dont think cds are fdic insured. find the highest rate.
- answered by bullet b
Answer #2
if it sounds to good to be true it probablt is,those types of banks are great for loans but youshould stick with a bank on cd's and mutual funds.ask about share accounts and dream shares, thosetype of investments can be started with little andretun alot if you're deligent and disciplined.
- answered by SGT C
Answer #3
The truth is more and more banks are entering theinternet to save money on manpower and leasingspace. As long as your bank account is FDICinsured (also noting you do not put more than$100,000 in it) and you contact the BetterBusiness Bureau to confirm the bank's reliability,then there should be no problem. It's just likemaking an account with an out-of-state bank, mailthem a check, make sure to get all your info faxedor mailed to you, and make sure you get the nameof your bank officer for future reference.Also,check out Money magazine and Kiplinger's PersonalFinance for other banks' rates, last time Ichecked none of the CD rates were less than 5 %.
- answered by Joe T
Answer #4
They are FDIC insured and regulated by the feds,so they are as safe as your local bank.Good luck
- answered by Matt
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