Monday, July 31, 2017

FDIC-Insured CDs

Many of our loyal readers have shunned the equity markets and hold significant portions of their portfolios in brokered FDIC-insured CDs. While the interest rates paid by the various bank offerings tend not to vary much, often the albeit-slight best rates can be found with the Bank of China. Do not rely on this, but it appears that FDIC-insurance covers bank insolvencies, but it does not cover other non-insolvency reasons for a bank's failure to repay a CD upon maturity. So, if you're a hyper-nervous-nelly who's concerned with what might happen in U.S.-China relations, you might eschew Bank of China CDs.  

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