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I have 2 and 3 year CDs in a bunch of banks. (This is a common use case, people open separate accounts because of the FDIC insurance limit in any one bank). I o
by CrowFly 7y ago
I have 2 and 3 year CDs in a bunch of banks. (This is a common use case, people open separate accounts because of the FDIC insurance limit in any one bank). I only need to log in again 2 or 3 years after opening the account to either take the money out, or open another CD.
Some of these banks expire passwords every 6 months! That's insane. I have calendar reminders set to remind me to log in and generate another password with LastPass.
- Consultant32452 7y agoI can't recommend e-banking enough. Through Fidelity you can purchase CDs from a number of banks across the country, shopping for the best interest rates. And you can create an auto-rolling CD ladder if that's your thing. I presume other e-banks like Schwab have similar features. Then you can manage all these things in one place, while getting the benefit of having your funds FDIC insured because they're technically CDs at multiple banks behind the scenes.
- SilasX 7y agoI would think money market mutual funds are a more liquid, easier, higher yielding version of that. They don’t have the FDIC insurance, but they’re well diversified and invest in the highest grade of bonds, and “breaking the buck” (holding less than enough to redeem all deposits) is extremely rare.
- fastaguy88 7y agoFrom 2008 - ???, money market accounts were offering 0% interest, while CD's provided some small rate of return.
- extra88 7y ago*A common use-case for millionaires. FDIC limits are $250,000 per-institution, per-account owner, per-account type (CD, money market, savings, checking) and my understanding is joint accounts are considered separate owners so two spouses could have up to $750,000 in CDs at a single bank and be fully insured.
- mruts 7y ago30% of households have an aggregate net worth above 250k. So the situation GP in describing is probably very common.
- bscphil 7y agoThe portion of households that have $250k in the bank is no doubt much less than 30%.
- sverige 7y agoBut the majority of that 30% with a net worth above $250k have most of it in the form of their house, not CDs.
- astura 7y agoI don't believe that most high net worth households are that cash heavy. I have well over $250k net worth, the vast majority of our assets are in brokerage and retirement accounts. We have only $60k in cash.
- bluedino 7y agoI think my credit union expires every 90 days :-/