Return to the Household Finances Forum | Post a Follow-Up

 o
Internet CD's

Posted by arizonarose (My Page) on
Wed, Jun 10, 09 at 14:20

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?


Follow-Up Postings:

 o
RE: Internet CD's

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


 o
RE: Internet CD's

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 :)


 o
RE: Internet CD's

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


 o
RE: Internet CD's

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?


 o
RE: Internet CD's

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).


 o
RE: Internet CD's

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

Why?


 o
RE: Internet CD's

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.


 o
RE: Internet CD's

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.


 o
RE: Internet CD's

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.


 o
RE: Internet CD's

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.


 o
RE: Internet CD's

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.


 o
RE: Internet CD's

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.


 o
RE: Internet CD's

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


 o
RE: Internet CD's

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


 o Post a Follow-Up

Please Note: Only registered members are able to post messages to this forum.

    If you are a member, please log in.

    If you aren't yet a member, join now!


Return to the Household Finances Forum

Information about Posting

  • You must be logged in to post a message. Once you are logged in, a posting window will appear at the bottom of the messages. If you are not a member, please register for an account.
  • Posting is a two-step process. Once you have composed your message, you will be taken to the preview page. You will then have a chance to review your post, make changes and upload photos.
  • After posting your message, you may need to refresh the forum page in order to see it.
  • Before posting copyrighted material, please read about Copyright and Fair Use.
  • We have a strict no-advertising policy!
  • If you would like to practice posting or uploading photos, please visit our Test forum.
  • If you need assistance, please Contact Us and we will be happy to help.


Learn more about in-text links on this page here