3 ms·
CDs are FDIC insured. If the bank goes under, you keep your funds (up to the insurance limit). Cryptocurrency accounts "staked" to a given exchange don't enjoy
by tomjakubowski 4y ago
CDs are FDIC insured. If the bank goes under, you keep your funds (up to the insurance limit). Cryptocurrency accounts "staked" to a given exchange don't enjoy that benefit, as many people are now learning.
I'd also recommend anyone shop around for CD rates. Those are hardly representative of what you can get at, say, Ally. (2.75% APY on a 5 year)
- Animats 4y agoIt's a high risk junk bond with deceptive retail packaging to make it look like a safe bank certificate of deposit. The suckers are supposed to think it's a CD. As long as the underlying market goes up, it behaves like one. If the underlying market goes down... It's a crappy bet, because the upside is limited while the downside can take you to 0.
- fny 4y agoYou're still getting ripped off. Don't buy CDs from ally. You can buy treasury bonds directly from the US government for north of 3%. See treasurydirect.gov.