With banks and the economy in the news so much lately, you may be thinking more about the safety of your money.

If a depositor’s accounts at one FDIC-insured bank or savings association total $250,000 or less, the deposits are fully insured. A depositor can have more than $250,000 at one insured bank or savings association and still be fully insured provided the accounts meet certain requirements. Here’s how to get the maximum coverage for your savings.

All funds in a “noninterest-bearing transaction account” are insured in full by the Federal Deposit Insurance Corporation from December 31, 2010, through December 31, 2012. This temporary unlimited coverage is in addition to, and separate from, the coverage of at least $250,000 available to depositors under the FDIC’s general deposit insurance rules.

The term “noninterest-bearing transaction account” includes a traditional checking account or demand deposit account on which the insured depository institution pays no interest. It does not include other accounts, such as traditional checking or demand deposit accounts that may earn interest, NOW accounts, money-market deposit accounts, and Interest on Lawyers Trust Accounts (“IOLTAs”).

For more information about temporary FDIC insurance coverage of transaction accounts, visit the official FDIC Web site.

Maximize Your FDIC Coverage

FDIC deposit insurance is $250,000 per depositor, per deposit category. The FDIC provides separate insurance coverage for funds that depositors may have in different categories of legal ownership. The FDIC refers to these different categories as ownership categories.

This means that each ownership category you have at the same bank is separately insured:

The FDIC adds together all single accounts owned by the same person at the same bank and insures the total up to $250,000.

Every joint account that an individual owns at the same insured bank are added together with his or her other joint account shares at the same bank, and the total is insured up to $250,000.

The FDIC adds together all Roth, Traditional, SEP and SIMPLE retirement accounts owned by the same person at the same insured bank and insures the total amount up to $250,000.

Here’s one way a household can have $1,500,000 of FDIC insurance:

Here’s one way a single depositor can be covered up to $500,000:

If you’re not sure how to set this up, check with your financial advisor, or with Discover Bank – one of the top paying CD and money market providers at this time.

How To Max Out Your FDIC Insurance On Savings and CD’s is a post from: RateNerd - unadvertised deals from banks.

                          

Related posts:

1. Inflation’s Impact On Your Retirement Savings Account
2. New ING DIRECT Kids Savings Account
3. Are CD’s Becoming Hot Again?
4. Paying For College – College Savings Accounts, Student Credit Cards
5. CD Rates: Lots Of Cash, Where Is The Yield?

Americans are pumping money into bank accounts, sending deposits to record levels near $10 trillion on fears the U.S. economy is on the verge of another implosion.

As a result, the national average on a 12 month CD is a meager 0.34% APY, according to Discover Bank’s website.

And the Los Angeles Times reports that banks are driving away deposits by refusing to renew CDs at higher rates and by imposing fees on checking accounts for depositors who don’t use other, profitable financial services as well.  This week Bank of America announced its intent to charge customers a $5 monthly fee to use their debit card.

There’s no sign that the flood into checking, savings and money market accounts is slowing down. In the last three months, accounts at U.S. commercial banks have increased $429 billion, or 10%, almost double the increase for all of last year.

The Fed has pledged to hold short-term rates near zero through mid-2013 unless the economy improves as a way to combat the nation falling back into a recession. That’s going to continue to cause pain to savers, and could force banks to become even more stringent about their intake of new deposits.

To find the best yields available for CD rates, check out the CD Rates tab on RateNerd.com.  Here you can find market leaders like Discover Bank who at the time of this post is offering 1.10% APY on its 12 month CD products – nearly three times the national average.

Resource: Discover Bank CDs

CD Rates: Lots Of Cash, Where Is The Yield? is a post from: RateNerd - unadvertised deals from banks.

                          

Related posts:

1. 10-year Treasury Yield Falls Below 2 Percent
2. Are CD’s Becoming Hot Again?
3. Mortgage Rates at 30 Year Low – Do You Qualify?
4. Up To $75 Gift Card At BJ’s Wholesale Club – Daily Deal
5. WOW – 4.00% APY Rewards Checking Account Offer – Daily Deal

Certificates of Deposit (CDs) have become a hot topic of conversation among investors.

Long the dependable-but-dull component of most investors’ portfolios, CDs became a prime safe harbor during the recent market turmoil by virtue of the very reliability that once made them seem staid.

As investors stampeded into treasuries for protection-and drove down yields on even 30-year Treasuries-investors discovered they could suddenly earn higher returns on CDs.

Buy a CD now and you’ll lock in a great rate with the confidence of knowing that your investment is FDIC insured.

How do CDs work and how can I take advantage of them?

CDs are low-risk investments you buy through a bank or thrift institution. For money you don’t intend to use for a specified length of time-6, 9, or 12 months, or several years-the bank will guarantee you a fixed return, usually substantially more than what you can earn on your checking or savings account.

But CDs share an important attribute with checking and savings accounts: they are insured by the Federal Deposit Insurance Corporation (FDIC). All CDs you hold in one institution are insured by the FDIC up to $250,000 per person, per deposit category. That’s a safety net you won’t find with stocks, bonds or mutual funds.

Ease and accessibility are two of the many great features of CDs. Unlike stocks or mutual funds, you don’t need a brokerage account to buy a CD. You don’t even need to file any paperwork. Just call your bank or go online to buy CDs without incurring transaction costs.

While you can access your money in an emergency, there are penalties for taking out assets before the maturity dates on each CD, typically equal to returns earned over the prior one to three months.

What should I know before buying a CD?

Before buying any CD, make sure you familiarize yourself with rules that govern it.

Whenever or wherever you buy CDs, it is essential that you read the fine print to understand the terms. Just as banking and checking accounts come with different features from bank to bank, the terms of different CDs can vary substantially from one to the other.

Beware of early withdrawal penalties, or other terms that may limit your flexibility to get access to your money if you need it.

Why are CDs important to banks?

CDs provide banks with a stable source of reserve funds. When banks sell you a CD, they can then turn around and lend the money in your account out to borrowers for more than they’re paying you and other CD account holders. If your CD is earning you 4 percent, for example, the bank might lend it out to other borrowers for 6-7 percent.

While CDs make bank balance sheets look good, in this market, they make investors feel good, too. People who are invested in CDs are sleeping well at night.

Who should invest in CDs?

Fernandez and Hance agree that CDs are best for investors who need dependable returns on their money, but won’t need the money for a specific period of time. Often these are investors who require predictability and safety in their investments.

Financial planners say it’s important to “ladder” your CD investments. That means you should buy CDs that mature every couple of months, for example, or every year to ensure your money is constantly being freed up at regular intervals should you need it.  You can see an example of how a $10,000 CD Ladder works here.

Where can I get the best rates of return for CDs?

Rates vary from bank to bank. Often online banks, like Discover Bank, offer significantly higher rates of return for their CDs than traditional banks.

Are CD’s Becoming Hot Again? is a post from: RateNerd - unadvertised deals from banks.

                          

CD rates are all over the place.

Short term CD Rates are higher, longer term CD rates dropping.

3 Year CD Rates Over The Last 6 Months

1-5 year terms have dropped in most cases.  The average one-year CD yield ticked up 1 basis point to 0.67 percent. The average five-year CD yield suffered though, falling 5 basis points to 1.88 percent.

The power of the internet lets us quickly find the best CD Rates.  CD investments are one way to diversify and add stability to your portfolio. While CD rates are not as attractive as they were a few years ago, you can still get a decent rate if you shop around.

CD investments or certificates of deposits are a great way to tame a high-risk portfolio into a low-risk one. However, short-term CD yields are unlikely to improve significantly until the Fed raises rates.

That’s why it pays to shop around.  As an example, Discover Bank is bucking the trend by offering competitive CD rates on CDs from three months to five years, paying higher than the national average. Here are the current Discover Bank CD Rates (as of October 7, 2010 – click on the link for today’s rate):

3 month CD – 0.7% APY

6 month CD – 1.00% APY

9 month CD – 1.10% APY

12 month CD – 1.35% APY

18 month CD – 1.50% APY

24 month CD – 1.75% APY

30 month CD – 1.85% APY

3 year CD – 2.0% APY

4 year CD – 2.25% APY

5 year CD – 2.75% APY

7 year CD – 2.90% APY

10 year CD – 3.00% APY

The minimum to open an account is $2,500. Interest from the advertised CD rates is accumulated daily and credited monthly.  Discover Bank is FDIC insured and your deposits are covered up to $250,000.

Advantages of CDs with short maturities

CDs with short maturities of three months, six months or one year allow you to take advantage of rates that might increase right when you’re ready to reinvest your money. If your portfolio is full of CDs with long-term maturities and you don’t have more cash to invest, you won’t be able to take advantage of higher interest rates that might pop up in the market.

Benefits of CDs with long maturities

Longer term three-year, five-year and 10-year CDs offer higher interest rates for allowing the bank to hold and use your money longer. This gives you the benefit of gaining more from your investment. Ideally, your portfolio should include a combination of short-term and long-term CDs so you can use CD laddering strategies and get the most bang for your buck. Look for the highest CD rates at RateNerd.com.

Where Are CD Rates Headed Next? is a post from: RateNerd - unadvertised deals from banks.

                          

Make sure you understand the basics of CD and Money Market Accounts.

Lately, anyone who’s been watching the stock market or reading the headlines may be asking themselves, “So where’s the safest place for me to save my money?”

Stashing your cash in your mattress may seem like the simplest and safest solution. But the money in your mattress isn’t protected by the Federal Deposit Insurance Corporation (FDIC) the way that bank deposit accounts are.

FDIC-insured bank deposit accounts are a safe way to protect your assets-while you grow your savings. And there are some great rates and high-yield accounts out there to help maximize your savings.

Whether your financial strategy is primarily a savings account you opened in high school-or you’re rebalancing a high-risk portfolio-FDIC insured bank deposit accounts can be an important part of your overall financial savings planning. What types of bank accounts are FDIC insured?

There are 4 types of bank deposit accounts.

If you’re looking for low risk and high yield investments, checking, savings, Money market deposit accounts and CDs are popular types of FDIC-insured bank deposit accounts.

These bank deposit accounts are insured for up to $250,000 for each depositor per institution.

Non-FDIC insured investment accounts include mutual funds, annuities, life insurance policies, stocks and bonds. These investments have generally higher risk than traditional deposit products-which means you could lose some of the money you invested or not gain as much profit as you expected, states the FDIC.

First, start with a goal in mind with an investment strategy

It’s important to have a clear understanding of what you are saving for. The shorter your investment horizon, the more liquid the investment should be.

Will you need ready access to your funds and move funds quickly? Then a shorter term CD may suit you best. Consider a 6-month CD or 12-month bank CD that you can quickly convert to cash.

If you’re saving for a car or that dream vacation, you may want to leave these funds untouched for a few years. In that case, putting your money in a 2-year certificate of deposit makes sense.

If you’re able to lock in your money for a longer time-a 5-year bank CD with a higher yield and longer term may suit you best.

If your goal is to save for retirement consider a longer term CD offering the highest interest rate, such as a 7-year CD or a 10-year IRA retirement CD. You can find high yield investments for both Roth IRA CDs as well as Traditional IRA CDs.  You can check CD rates from Discover Bank here, or check the CD rate tables at RateNerd.com.

Your investment strategy will depend on your goal, the length of time you hold your investments and where you put your money. Once you are clear on what you’re saving for and how soon you will need your money, you’ll have a better idea of what types of investments are best for you.

Figure out how much you need to save to reach your goal and how much you can save each month toward that amount. “Laddering” your CDs can help you optimize both cash liquidity and interest. For example, you may consider putting part of your funds in a 6-month CD, another amount in 12-month CD, a 2-year CD, 3-year CD, 4-year CD and finally a 5-year CD. In effect, laddering your investment from short to long term. As time goes by and your CDs mature, you then reinvest them in a longer-term, high yield CD.

Understand the basics of Money Market Accounts – Higher rates for higher balances

Money Market Accounts are great ways to invest money for the short-term. If you need a quick turnaround, these are stable ways to secure a return on your investment.

Money Market Accounts (not to be confused with money market funds) are simple, flexible and secure. Most money market accounts provide higher interest rates than a savings account-with greater access to your funds than a CD.

Money Market Accounts will earn about twice the interest of a savings account, according to Bankrate.com4. A minimum balance is usually required, which may be more than a savings account requires.

A Money Market Account works like a checking account with a variable rate. When you need cash, you can quickly transfer funds without penalty. You can access your money using a bank debit card, check, wire transfer, online transfer of funds-and even arrange free bill payment from your money market account.

You can deposit money as you’re able and can also set up automatic transfers to your money market account from a checking or savings account.

If you only need to dip into your account a few times a month, a Money Market Account with a competitive rate may be the best investment for you.

Money Market Accounts are a simple way to save. Best of all, there’s no market risk-the money you deposit will never decrease in value.

Know how Certificate of Deposits (CDs) work – Rates increase as the term length increases

A CD is a low-risk bank deposit account with fixed interest rates that increase the longer the term of the CD. You purchase a CD for a specified length of time-from three months to several years-and the bank guarantees you a fixed return. These returns are usually substantially more than what you could earn with a checking or savings account.

The bank pays you interest periodically and when you redeem your CD you receive your principal plus accrued interest. If you need a dependable return on your money, but don’t need to tap into your money for a specific period of time, consider a certificate of deposit.

Make sure you understand the terms-and the penalties for withdrawing your money before the CD maturity date.

Look for the best bank ratings and find a safe haven for your money

In addition to looking at the low risk and high returns of bank deposit accounts, check out the bank rating. Moody’s, S&P and Bankrate.com offer ratings of a bank’s financial strength and performance. Look for the best bank rating available (AAA rated or 5 star), which indicates a strong bank that’s a safe haven for your money.

Now that you have a basic understanding of two types of FDIC-insured bank deposit accounts, you’re ready to put your money to work for you in a high yield deposit account with a top rated bank.

Money Market and CD bank deposit accounts are a very simple-and very secure way-to save. Be sure you know the different types of accounts available, the pros and cons of each type, how easily you can access your funds in case you have cash flow problems (the liquidity), and the terms and fees involved.

Some other questions to consider when shopping for Money Market or CD accounts:

• What types of bank deposits accounts are offered?
• Where can I get the best rates?
• How long do I want to invest this money?
• What are the transaction limits?
• When is the interest credited?
• What are the terms?
• What services are offered?
• What is the minimum investment/balance?
• How easy is it for me to bank there?

TIP: Most people who open a financial account online are having that experience for the very first time. If you’re just starting out, get information on how to budget in tough times and find helpful tips on saving for today, tomorrow and beyond.

TIP: FDIC-insured deposit accounts include: Checking and Money Market Accounts, savings accounts including passbook accounts and Certificates of Deposit (CDs).

Non FDIC insured investments include mutual funds (stock, bond or money market mutual funds), annuities, stocks, bonds and Treasury securities. Source: FDIC.gov

How To Use CD’s and Money Market Accounts Now is a post from: RateNerd - unadvertised deals from banks.

                          

It’s hard to beat the rock-solid security of certificates of deposit (CDs).

Because CDs aren’t subject to the wild swings of the stock market, CDs can add steady returns to your investment portfolio. The key is having a strategy that maximizes your CD returns.

With a “CD ladder,” for example, your money is spread among CDs with a variety of maturity dates. Why is that important? Well, if the economy is in a slump and interest rates are low, you don’t get stuck buying a bunch of CDs with low interest rates. Spreading out maturity dates also provides some liquidity, as one or more CDs will always be approaching maturity.

How a CD Ladder Works

Let’s use a five-year ladder and $20,000 to invest as an example. Here, you would have five “rungs” of $4,000 each. For the first rung, you would put $4,000 in a one-year CD. For the second rung, you would put $4,000 in a two-year CD, continuing on up to $4,000 in a five-year CD.  So your CD ladder would look like this:

• Rung 1: $4,000 Matures in 1 yr.
• Rung 2: $4,000 Matures in 2 yrs.
• Rung 3: $4,000 Matures in 3 yrs.
• Rung 4: $4,000 Matures in 4 yrs.
• Rung 5: $4,000 Matures in 5 yrs.

After a year, the one-year CD matures. That means each of the other CDs now are one year closer to maturity (i.e., the two-year CD now matures in one year and the three-year certificate matures in two years).

If you don’t need the money for immediate needs, you take the $4,000 plus earnings from the one-year CD that has just matured and roll it over into a new five-year certificate (and put on the top rung of your ladder).

With a CD ladder, you’re always replacing the rung that’s farthest out (i.e., the CD with the longest maturity). If the economy is slumping and interest rates happen to be low one year, you’re only reinvesting a portion of your investment when yields are low. And because you’re constantly reinvesting, you don’t have to play guessing games with where rates are headed.

The beauty of laddering is that you can adjust the “length” of your ladder however you want. In a low-rate environment, for example, you may want to keep your ladder short. Perhaps you’d create a one-year ladder with four rungs (three, six, nine and 12 months).

Matching CD Maturities to Needs

CDs typically come with early withdrawal penalties, which can wipe out any returns if you need to take the money out before the term is up. So, make sure the maturities you select work with your cash needs. Here, it may make sense to hold some cash in a high-yielding money market account. You’ll earn competitive yields and enjoy access to your money market funds in a pinch so that you don’t need access to your CDs.

Here is how a CD ladder would look using today’s CD rates from Discover Bank:

• Rung 1: 1 year CD rate 1.70% APY

Current Rates for 12-month CDs

• Rung 2: 2 year CD rate 2.15% APY

Current Rates for 24-month CDs

• Rung 3: 3 year CD rate 2.50% APY

Current Rates for 36-month CDs

• Rung 4: 4 year CD rate 2.65% APY

Current Rates for Discover Bank CDs

• Rung 5: 5 year CD rate 3.20% APY

Current Rates for Discover Bank CDs

To see today’s CD Rates check the CD Rate Center.

FDIC Coverage for your CD Certificates of Deposit

Federal Deposit Insurance Corporation (FDIC) insurance coverage has been increased from $100,000 to $250,000 for all deposit accounts, including CDs, until the end of 2013. In cases of a CD ladder that exceeds the FDIC coverage amount, you can open accounts in different ownership categories (e.g., individual, joint, trust), or at multiple banks to make sure your CD purchases are covered.

CD Laddering: Strategies For Financial Success is a post from: RateNerd - unadvertised deals from banks.

                          

Certificates of Deposit (CDs) became a prime safe harbor during the recent market turmoil,  thanks to the very reliability that once made them seem boring.

The dependable (but dull) component of most portfolios, investors discovered they could suddenly earn relatively high returns on CDs.

Buying a CD now lets you lock in a consistent rate or return, with the confidence that your investment is FDIC insured.  Click here to see today’s highest CD rates.

How do CDs work?

CDs are low-risk investments you buy through a bank or thrift. For money you don’t intend to use for a specified length of time – 6, 9, or 12 months, or several years – the bank will guarantee you a fixed return CD interest rate, usually substantially more than what you can earn on your checking or savings account, even an online savings account.

But CDs share an important attribute with checking and savings accounts: they are insured by the Federal Deposit Insurance Corporation (FDIC).  All CDs you hold in one institution are insured by the FDIC up to $250,000 per person, per deposit category.  That’s a safety net you won’t find with stocks, bonds or mutual funds.

Ease and accessibility are two of the many great features of CDs. Unlike stocks or mutual funds, you don’t need a brokerage account to buy a CD. You can purchase CDs from your bank or go online to buy CDs without paying any transaction costs.

While you can access your money in an emergency, there are penalties for redeeming CDs before the maturity dates on each CD, typically equal to CD interest earned over the prior one to three months.  One exception to this rule is the “Penalty Free CD” from Discover Bank which allows you to withdraw principal and credited interest penalty-free if you lose your job.

What should I know before buying a CD?

Before buying any CD, make sure you familiarize yourself with the terms and conditions. Just as banking and checking accounts come with different features from bank to bank, the terms of different CDs can vary substantially from one to the other.  Make sure you understand the penalties for early withdrawal, which at some banks can be as high as one year of accrued CD interest.

Why are CDs important to banks?

CDs provide banks with a stable source of reserve funds. When banks sell you a CD, they can then turn around and lend the money in your account out to borrowers for more than they’re paying you and other CD account holders. If your CD is earning you 4 percent, for example, the bank might lend it out to other borrowers for 6-7 percent.

While CDs make bank balance sheets look good, in this market, they make investors feel good, too. CDs are investments which let you sleep well at night.

Who should invest in CDs?

CDs are best for investors who need dependable returns on their money, but won’t need the money for a specific period of time.  Often these are investors who require predictability and safety in their investments.

Financial planners say it’s important to “ladder” your CD investments.  Building a “CD Ladder” means you should buy CDs that mature every couple of months, for example, or every year to ensure your money is constantly being freed up at regular intervals should you need it.

Where can I find the best CD rates?

Rates vary from bank to bank, as you can see on the CD rate tables at RateNerd.com.  Often online banks, like Discover Bank, offer significantly higher rates of return for their CDs than traditional banks.

Bank Rates Sponsored by Discover Bank

CD Rates Offer Safe Harbor From Volatility is a post from: RateNerd - unadvertised deals from banks.

                          

Who has the best online savings account interest rates?  That depends on what you are willing to do.

Here is a quick round up of some of the best online savings account interest rates available right now:

Everbank -  2.51% APY for the first 3 months for new accounts. This rate is higher than any 3-month certificates of deposit currently available.

Discover Bank – is offering 2.00% APY on its new online savings account.

Ally Bank -  1.75% APY.

FNBO Direct –  1.50% APY.

HSBC Direct Online Savings 1.45% APY. No fees and no minimums. Access your account anytime.

ING Direct – Electric Orange – offers 1.53% APY on balacnes over $100,000. Free Bill Pay. Free ATM’s at more than 35,000 locations.

www.MoneyAisle.com - check daily for auction rates – these tend to be pretty good.

The Bottom Line is that it pays to shop around.   Here are some additional rescources for you to find the best interest rates:

Best Money Market Rates

Best CD Rates

Best Mortgage Rates

Best Bank Rates

Best Online Savings Account Interest Rates is a post from: RateNerd - unadvertised deals from banks.

                          

This 9 month CD rate from Fidelity Bank may be just what your CD ladder is calling for.

Fidelity Bank in Michigan is offering 2.05% APY on its 9 month certificate of deposit for new accounts up to $250,000.

Details of the CD include:

• $1,000 minimum opening deposit to earn stated cd rate APY.
• Maximum CD deposit of $250,000.
• New money only. Penalty for early withdrawal of the certificate of deposit.
• Consumer accounts only, brokered accounts not eligible.
• Limited time offer. Subject to change at any time.   Not valid with any other promotions or special offers.
• CD deposit funds are FDIC insured up to the maximum amount allowed by law.

Dearborn Bancorp, Inc. (DEAR) is the bank holding company for Fidelity Bank (the Bank), a banking corporation that commenced business on February 28, 1994. The Bank offers a wide range of financial products and services, including checking accounts, savings accounts, money market accounts, certificates of deposit, business checking, direct deposit, loan services, travelers’ checks, cashiers’ checks, wire transfers, safety deposit boxes, collection services and night depository services.

CD Rate of 2.05% on 9 Month Certificate of Deposit – Daily Deal is a post from: RateNerd - unadvertised deals from banks.

                          

Ally Bank continues to pay some of the highest certificate of deposit CD rates in the country.  Is their strategy working?

Ally Bank’s 2.00% 1 year CDs, while less than half the 4.05% yield a year ago, are among the highest in the country, according to Bankrate.com.  CD rates fluctuate as interest rates rise and fall.

Parent company GMAC is counting on added deposits at Ally Bank to help fund lending. In May it received an exemption from the Federal Reserve allowing the bank to originate a limited amount of GM- related retail and wholesale assets.

GMAC renamed Ally Bank in May and boosted television advertising to attract new customers.  Television ads criticize competitors for hiding rate increases and say there’s “nothing buried in the fine print” at Ally.  GMAC’s deposits in the first quarter rose 17 percent from the previous period to $23.2 billion.

“The business model for GMAC is shifting to become increasingly more reliant on bank funding,” said Gina Proia, a company spokeswoman. “In making the brand transition, we executed several activities including the ad campaign to let customers know what this bank stands for.”

Is Ally Bank’s Rate Strategy Working? is a post from: RateNerd - unadvertised deals from banks.