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Buying CDs from online banks
Is this safe? Their rates are much higher than local brick and mortar banks, but I get nervous about sending my money off into cyberspace, especially if it is a bank I've never heard of.
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10-25-2016, 11:56 AM
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Why buy CDs?
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1989 3.2 Carrera coupe; 1988 Westy Vanagon, Zetec; 1986 E28 M30; 1994 W124; 2004 S211 What? Uh . . . “he” and “him”? |
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10-25-2016, 04:43 PM
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Information Junky
Join Date: Mar 2001
Location: an island, upper left coast, USA
Posts: 73,167
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yeah, go retro and buy vinyl.
sounds too good = scam.
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Everyone you meet knows something you don't. - - - and a whole bunch of crap that is wrong. Disclaimer: the above was 2¢ worth. More information is available as my professional opinion, which is provided for an exorbitant fee. 
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10-25-2016, 04:52 PM
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Registered
Join Date: Sep 2009
Location: North of You
Posts: 9,160
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To what benefit?
I would say 'no'.
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"A machine you build yourself is a vote for a different way of life. There are things you have to earn with your hands." |
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10-26-2016, 05:12 AM
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The benefit would be >1% interest vs .35% from local brick and mortar banks.
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10-26-2016, 05:22 AM
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Registered ConfUser
Join Date: Aug 2006
Location: Waterlogged
Posts: 23,915
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Does FDIC apply(I believe up to $100k)?
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Mike “I wouldn’t want to live under the conditions a person could get used to”. -My paternal grandmother having immigrated to America shortly before WWll. |
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10-26-2016, 05:29 AM
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Get off my lawn!
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I buy my CDs from Amazon.Com.
 With the stupid and insanely low rates of CDs I just moved my into safe and boring investments. When it gets to be 11/32nd of one percent for a 25K CD it is past stupid low. My checking account pays 3%.
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Glen 49 Year member of the Porsche Club of America 1985 911 Carrera; 2017 Macan 1986 El Camino with Fuel Injected 350 Crate Engine My Motto: I will never be too old to have a happy childhood! |
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10-26-2016, 05:35 AM
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Registered
Join Date: Aug 2002
Location: MD
Posts: 5,747
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fdic insured, brick or no brick
CD Rates - compare highest CD rates at bankrate.com Find a higher yielding money market, bankrate.com agian, and dont tie up your $$ for so long. No reason to settle. |
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10-26-2016, 05:40 AM
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Driver, not Mechanic
Join Date: May 2013
Location: SF Bay Area
Posts: 3,035
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How much are we talking about? I don't have a large amount of cash other than my emergency fund, which is in a regular savings account for accessibility reasons.
Of course if you are retired then you will have a larger amount of cash needed for the next 1-3 years, in which case, some CDs or bonds may be better. |
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10-26-2016, 05:47 AM
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It looks like FDIC does apply at the banks I'm looking at (Nationwide, Popular Direct, and Ally). I'm looking to fill in some spaces in my laddered CD portfolio (I have CDs maturing every six months out to two years) and I'm thinking of moving out to 5 years with one. I'm 66 years old and increasing the cash portion of my portfolio.
Bankrate.com isn't exactly the best place to look for bank rate information. 
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10-26-2016, 07:14 AM
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Banned
Join Date: May 2014
Posts: 15,053
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Why not buy an insured muni ?
3.5 % tax free. |
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10-26-2016, 07:46 AM
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Registered
Join Date: Aug 2002
Location: MD
Posts: 5,747
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Quote:
Why lock in for 5 yrs now? Rates are going up sooner than later, park for the short term w/o much of a discount and then go longer term if still want to. |
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10-26-2016, 07:58 AM
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Quote:
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10-26-2016, 08:16 AM
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Registered
Join Date: Jun 2008
Location: LEEDS ,UK
Posts: 2,169
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How do I buy these insured municipal bonds.? I googled, but didn't find any vendors
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1986 924S bought new. Now used for AutoX and street. Chipped, throttle cam, highflow filter in original airbox/snorkel, 14mm rear sway Hyundai Ioniq hybrid daily driver Vindicator Vulcan V8 spyder, street legal sports racing car (300hp,1400 lbs kerb weight) used for sprints on circuits, and hillclimbs |
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10-26-2016, 08:44 AM
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Registered
Join Date: Aug 2002
Location: MD
Posts: 5,747
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Quote:
I used to hunt for the absolute best rate. That was great but I ended up with accounts all over the place. For me, using cap1 (ing direct), Ally or Everbank or my local credit union is much simpler to manage. Sure, I give up .05% sometimes. I'm ok with that. Do what works for you. |
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10-26-2016, 08:54 AM
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Bollweevil
Join Date: Dec 2003
Location: Fulshear, Texanistan
Posts: 3,363
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WD, if you haven't already done so, suggest you go on-line and check out any local credit unions. Although their rates vary, their CD rates are much better than I could find anywhere else.
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Jack 74 911 Coupe 2.7L - K21 Option - S suspension |
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10-26-2016, 09:20 AM
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Banned
Join Date: May 2014
Posts: 15,053
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They get paid by the seller, so there should be no commission I don't know if you can buy them from an on line broker. |
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10-26-2016, 10:24 AM
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Take a look at TIPS (Treasury Inflation Protected Securities). Treasury bonds, various maturities, face value adjusted annually for inflation. Can buy direct or in funds like TIP.
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1989 3.2 Carrera coupe; 1988 Westy Vanagon, Zetec; 1986 E28 M30; 1994 W124; 2004 S211 What? Uh . . . “he” and “him”? |
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10-26-2016, 10:53 AM
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Burn the fire.
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Your inquiry made me think of this little bit...
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[x] Working | [_] Broken: 2017 Victory Octane [x] Working | [_] Broken: 2005 Ram 1500 SLT w/5.7L Hemi "Drive it like you stole it." |
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10-26-2016, 12:33 PM
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Registered
Join Date: Sep 2008
Location: Los Angeles
Posts: 685
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If you're honestly thinking of "investing" in something that pays you less than the expected rate of inflation you're not thinking it through.
+2.0 percent CD, matures in a year -3.5 percent expected inflation ---- =1.5 percent loss, plus the taxes That's a seriously bad investment because you already know you'll lose buying power. I could think of a thousand better ways to invest money.
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2001 986 S |
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10-26-2016, 03:36 PM
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1989 Porsche 911 Carrera 3.2
Carrera
2017 Victory Octane
2005 Dodge Ram 1500 SLT
