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My very first C.D.

February 1st, 2007 at 02:55 pm

I bought my very first certificate of deposit yesterday. I getting a c.d. at 5.75% for 6 months.
All I got was a piece of paper. I don't know what i thought I would get. I am glad I finally know how to look up my bank accounts online. I am anxious to see if this shows up this morning!!
I love having that big sum in my money market account, but I know I should spread it around to make sure that I am covered with fdic insurance.
So, I put in $100,000.
I think I will put the next $100,000 in my name only. The way I understand it, you can have $100,000 in joint names, and $100,000 each in your name and your husband's name only.
Any banker's out there to confirm this??

2 Responses to “My very first C.D.”

  1. Aleta Says:
    1170345802

    Ima, the way I understand it is that they will insure you up to 100,000 not over 100,000. The interest you earn on your CD will definitely put you over the 100,000.

  2. scfr Says:
    1170392337

    Ima - Congratulations on your first CD ... Had no idea you had not had one before! Will you be buying T-Bills at auction next?

    Regarding insurance, I have been told (by bankers) that you are insured for $200,000 on a joint account (since there are 2 people on the account and each is insured for $100,000). In addition, you can open up separate accounts for $100,000 each for a total of $400,000 at one bank.
    However ... I have also been told (again by a banker) that if a bank happens to go belly up it can take years before you actually get reimbursed by FDIC. So, think seriously about how much you want to put in one individual bank.

    If you want to read up on it a bit more, here is a link to the FDIC web site where they talk about this:
    http://www.fdic.gov/deposit/deposits/insuringdeposits/index.html

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