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Posted by ejoh2650 3 years ago In:

ejoh2650
ejoh2650 Asked About 'Ask the Dolans: Dolans.com'

Advice for opening a CD

I have about 20k in an ING Direct savings account. I would like to put some of this money into a cd. Recently I searched online for high interest rate cd in New York city, where I live. I found two that offer good rates- for example- 2.5% for a 3 year cd, which is more than what ING currently offer. How do I know if a bank is secure and I can put my money into their cd. Also, would you suggest I stick with a cd through my current savings bank, ING?

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Lido
Lido Answered:

Make sure that your savings are FDIC insured.

Also keep in mind that withdrawing from a CD before maturity will cost you. Therefore I would keep enough emergency money in your savings account.

Hope this helps.

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ejoh2650
ejoh2650 Answered:

Thanks very much. I wasn't sure if there was anything else other than being FDIC insured that I should look out for. I am a bit wet behind the ears with this type of thing, and the changes in the economy and banks had me a little nervous... Sort of like it looks to good to be true, it probably is to good to be true...

 

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dchamberlain
dchamberlain Answered:

Agree with below answer; ensure the bank is FDIC insured (basically insured by the US Government).  One tweek though is to make sure you don't have more than 100K invested in any bank since that is the limit on FDIC insurance....

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RateNerd
RateNerd Answered:

ING is a solid institution and you can feel safe having your savings there.  But they dont always pay the highest yields - check the rate tables at http://ratenerd.com, and you can check this article with links on how to see if your bank is on the FDIC watchlist - http://ratenerd.com/fdic-closes-4-more-banks-how-to-see-if-your-bank-is-solvent-1502


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