This weeks rates:

Links to Banks Listed:

GMAC Bank   Umbrella Bank  Advanta Bank Corp  Citi  Countrywide Bank  E-Loan  Bank of America  Etrade

CDrocket Answer:  Hey – Mr. R! Great question!  While we don’t know the final truth regarding the SECs allegations against Standford International Bank (news here), it is safe to say two things:  1) apparently many people assume that all CDs sold in the US are FDIC insured (they aren’t), and 2) when the SEC issues a press release like this, it doesn’t look good for the “depositors.”

Apparently many people assumed that CDs, sold in America by a bank were insured by the FDIC.  Unfortunately, they were wrong.  Institutions in the US that are US chartered Banks selling CDs and Checking Accounts and traditional bank products are insured.  Safety deposit boxes, stocks sold by the banks securities arm, foreign bank deposits, etc. are not.  More from the FDIC here.  If you are buying a CD, you need to be aggressive – don’t just assume…. (don’t feel too bad if you got caught by this – apparently many people did!)

It is easy to tell if the CDs you are considering are FDIC insured.  

One, banks list that they are FDIC insured, so if you are purchasing a CD from a bank, you will see something like this:  

FDIC Insured

However, many banks have investment arms, which are not FDIC insured, but they may offer brokered CDs (among other investment products) and brokered CDs are usually FDIC insured.  So sometimes the language on the site can be confusing.  Here BofA is explaining how some products are insured, while others are not….  (and they do it with such style!)

Confused yet?

Two, if you are at all concerned, ask the bank / institution where in the marketing material it says:  ”FDIC insured.”  They should be able to tell you.

Three, you can always go to the FDICs Web site, and run a search there:

FDIC Bank Search

Here you can see exactly who is insured by the FDIC – and who isnt.   Good luck! Write in with more questions!

I feel a bad time today.

~ John Fogerty

Quoting this song seems an obvious prop, but with the Dow falling and rates continuing to slide,  dividend stocks blowing up daily – the situation is grim.  I do feel like a bad moon has risen.  So, now more than ever, we would encouage you to watch every dollar, sweat every percent, dont be complacent!  Search for your best CD Rate just like you would try and get your best price on a car or a gallon of milk! 

Our Best and Worst CD Rates in the US ©

Best and Worst US C.D. Rates

Source:  CDRocket.com

Links:

GMAC Bank   Umbrella Bank  Advanta Bank Corp  Citi  Countrywide Bank  E-Loan  Bank of America  Etrade

Umbrella Bank

The slide continues.  Work hard to find your best rate!

Current US CD Rates Feb 23, 2009

But apparently anything can be labled High Yield!  

BofA has a special this week – if you have $5,000 (instead of their standard minimum of $1,000) you can get a better rate that their standard 1 year CD at 1.26% APY.   No, for a special time, you can get a one year CD paying 2.36% APY!!!  Yea!!!! 

Bank of America's High Yield Offer!

Except.

Except this rate isnt so great – Umbrella Bank is paying 2.9% APY – with a minimum to open of $100.  (For readers with weaker math skills, that approximately .50% MORE with a minimum deposit that is $4,900 LESS.  

High Yield Indeed!  Perhaps it is High Yield, if compared only to the normal BofA pricing.

(Remember,  the CDRocket has zero connection to any bank.  None, Nada, Zip.  Use what bank you want – we just think you should be aware you have options…..)