The worst that can happen if you put in under $100k is the FDIC, or another bank who takes control of your account via the FDIC, sends you a check rather than Wamu. Make sense? Would you do it? 5% is a terrific rate on an FDIC insured CD.
Wamu 12 mo CD = 5%. Take it? It's FDIC insured.
- Thread starter seasideheights
- Start date
why are you on a trading site talking about 5% per year as a good return??? After inflation and taxes, its a negative return. You can buy PFE or T and get around a 6% tax advantaged dividend.
That is not true.
I continued to receive interest on my Indymac CD after they went under.
Correct
Clubber, per FDIC website:
What happens when a bank fails?
The FDIC would either transfer the insured depositor's account to another FDIC insured bank, or give the insured depositor a check equal to their account balance. This includes the principal and interest accrued through the date of the bank's closing, up to the insurance limit.
Quote from simon1080:
FDIC in itself is not trustworthy at the moment in my books.
And I would keep 20 mile distance from any WAMU wachovia branches.
i understand your point but, if you really believe the FDIC/US govt. will fail to back bank deposits, i am curious as to what currency or asset class your $ is in?
if, however, you don't feel the whole system is going to fail, then WAMU or the like @ 5% (vs 2.5% in BoA) makes sense as long as you make sure your deposits are structured correctly to take advantage of the FDIC limits. i have business funds in their 4% money market and personal in this CD and their 3.75% mmkt. i did take money out of WAMU a few months ago to put myself within FDIC limits...