Bank Rating: does it matter?
Since most banks are FDIC insured, does a rating matter?
I have been looking for a safe place to park my cash. I found a bank in my area which offers better rates than my primary bank does.
I checked its rating at bauerfinancial.com. It has two stars.
Currently, it is offering 11 mo CD with 4.11% rate (min $10,000). The rate is attractive, but the rating is not. I also found out at reuters.com that it's portfolio has Mortgate-backed Securities.
Its rating and holding concerns me, but it is FDIC insured. Shoud I worry about these negatives? Or go ahead and just put money in the bank?