Welcome to my blog where I discuss money, investing, politics, and anything else import in the world. I find it surprising that most people in their 30s have very little knowledge or interest in these areas. Of course everyone is interested in money, but very few take the time or have the discipline to properly save and invest it for the future or short term. For those who at least have the interest, I'll write about my experiences and methods of investing, and hopefully give you a head start in investing.

Monday, May 12, 2008

Yes, CDs are still safe

Over and over again the ultra-conservative investor seems to ask the question on financial shows like MoneyTalk, "Are my CDs safe?". Especially when relating to banks or institutions that have been in the news such as Countrywide. Of course these troubled institutions are the ones with the best rates on deposits, since they are the most desperate for money. You know there is a real panick, when people start to question the riskiness of CDs.

The simple answer is make sure you are insured by the FDIC at the bank and sit back and relax. FDIC insurance covers deposit amounts up to$100,000 per person per bank. You can verify the bank has FDIC insurance by visiting http://www.fdic.gov/. If your bank does fail, its assets will either be taken over by another bank or you will be paid principal and interest by the FDIC in usually one day.

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