Internet CD's

arizonaroseJune 10, 2009

Have any of you ever opened a CD on the internet? I was surfing around, and see that Discover bank is offering 3.50% online. I've always banked at the bank, with online acess to bill pay. Do you think opening a CD online like that is safe?

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harriethomeowner

I have some with ING. I haven't had a problem yet. (They are not paying that much right now, though!)

    Bookmark   June 10, 2009 at 3:44PM
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arizonarose

Thanks harriethomeowner , I guess not a lot of people here do the online CD's. I'm just leary of them...

Thanks again for your reply :)

    Bookmark   June 11, 2009 at 10:21AM
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kframe19

As long as they are FDIC insured, it should be just fine.

    Bookmark   June 11, 2009 at 3:20PM
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cmarlin20

I have internet MMA's, no problem, I would buy from any FDIC insured institution with the best CD rate. I used to have a Discover online account, also.
There is no reason to be leary, have you checked bankrate.com?

    Bookmark   June 11, 2009 at 5:07PM
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cindyb_va

What Kframe said...as long as the bank is FDIC insured, I think you are good to go.

I have accounts with multiple online banks and have never had a problem (been doing this since around 2003).

    Bookmark   June 12, 2009 at 8:10AM
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western_pa_luann

" I'm just leary of them... "

Why?

    Bookmark   June 12, 2009 at 1:15PM
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arizonarose

western_pa_luann, I guess it stems from liking to sit across the desk from a bank rep and do things face to face. I do internet bank with my local bank, but banking online with a bank and not having anyone to talk to face to face isn't comfortable for me. Probably silly...I know.

Hey, thanks everyone for the feedback.

    Bookmark   June 12, 2009 at 3:38PM
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stargazzer

If you have to ask that question you should not do it. I use only banks I am familiar with, banks in my city. I have heard of people doing online banking and I don't mean checking on their accounts. I mean sending their pay checks to a bank they have never set foot in. Unbelievable.

    Bookmark   June 16, 2009 at 8:13PM
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blackcats13

My regular banking is through one of the big banks, but I have savings (little as it is these days) and have had a CD through Emigrant Direct, my ex has done the same with Ing and neither of us have ever had problems. That said, I am very comfortable with technology and prefer to conduct business at my own convenience (which is often outside of business hours) and usually not face to face. The times I have needed to interact with employees of ED have been good experiences.

    Bookmark   July 4, 2009 at 6:46PM
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stargazzer

I guess I just old when it comes to money. I love electronics, but not for handling my money. I want to be able to walk in and do business with someone I will recognize when I go in to do business. What proof can you get to confirm they are FDIC.

    Bookmark   July 4, 2009 at 9:22PM
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jkom51

No bank in the US, whether domestic or foreign-owned, is allowed to use the FDIC guarantee unless they have paid their insurance premiums to the FDIC. No exceptions!

Not only the FDIC, but also other banks, enforce this. You'd better believe that any Internet bank claiming FDIC insurance but not actually having it, would get turned in ASAP by its competitors. "Hot money" (see the great article in today's WSJournal explaining how money flows around seeking the best rates of return, thus is nicknamed 'hot money') is a huge, huge source of cash to leverage for high-yield loans.

Note that credit unions are not members of the FDIC. Some of them, but not all, belong to their own equivalent insurance organization. Be sure to check carefully.

Having worked at a bank, I can tell you that the worst paid people are the ones who meet with retail customers. The higher you go, the less contact you have with non-institutional customers. No bank is really interested in you personally unless you are regularly moving around seven-figure cash flows. They can pretend they care, but honestly, they really don't. Little amounts are only worthwhile when lumped together into large conglomerated funds. It's just the nature of business.

    Bookmark   July 4, 2009 at 11:09PM
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harriethomeowner

The accountant who does our taxes, who is very conservative about financial issues, spoke highly of ING. And as I said, we have not had problems with them.

    Bookmark   July 6, 2009 at 1:34PM
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cindyb_va

What proof can you get to confirm they are FDIC?

You can look up any institiution on the FDIC.gov website to verify that it is a member.

The Credit Union insurance program is NCUA, I am certain you can do a search on their site as well.

I have done business with ING since 2004 and have nothing but good things to say about the service and the rates I have received.

Here is a link that might be useful: Link

    Bookmark   July 6, 2009 at 5:08PM
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breenthumb

I never knew credit unions weren't FDIC insured. Just checked and mine is not. Off to check NCUA. Thanks for the info.

    Bookmark   July 7, 2009 at 12:43AM
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