Talk of The Villages Florida - Rentals, Entertainment & More
Talk of The Villages Florida - Rentals, Entertainment & More
#76
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#77
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Not sure I understand your post. You can buy brokered CDs from Vanguard and Fidelity that are FDIC insured, and they will sell you U.S. Treasury products that are backed by the Government. They also sell non-insured products.
The Vanguard and Fidelity companies are not personally FDIC insured, but they don't fund the products that they sell. They are brokers who buy and sell products for you, and hold them in an account for you in your name. So, if you buy a brokered CD that is FDIC insured, you are protected the same way the original purchaser is protected. |
#78
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Note that all products sold by banks are not FDIC insured. FDIC deposit insurance only covers certain deposit products, such as checking and savings accounts, money market deposit accounts (MMDAs), and certificates of deposit (CDs). Other products like mutual funds and annuities are not FDIC insured, even if you buy them from an FDIC bank. So, a municipal money market fund similar to the Vanguard fund, referred to in Post No. 75, but sold by a bank, would not be FDIC insured.
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#79
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#80
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All the "brokered" CDs I ever bought through Schwab and TD Ameritrade were FDIC insured. |
#81
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Vanguard and Fidelity do make money with built in management fees, but the quoted yields for brokered CDs are the actual yield that you will receive. There is no separate fee to have an account with these companies. A bank can only offer you CDs that they have created. But, Vanguard and Fidelity have access to thousands of products from thousands of sources. An individual bank cannot compete for yields with Vanguard and Fidelity.
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#82
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#83
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The Fidelity site has a list of banks for their brokered CDs. As you look at the list, you will see names of banks you know and there will be some whose bricks-and-mortar you mght drive past every day. Yet, you will not get the same rate by walking in the door. You can choose call-protected or not. And the FDIC insurance is there. I cannot figure out though how The Bank of China is FDIC insured, but it looks like BOCNY is based in NYC and somehow has the insurance and has had it for years. But you can just buy American banks. There are lots of choices on the list. You get to pick the bank(s). Boomer Last edited by Boomer; 03-08-2023 at 07:49 PM. |
#84
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#85
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Keeps going up. No reason to lock in long term
3mo 6mo 9mo 1yr CDs (New Issues) 4.90% 5.00% 5.25% 5.40% BONDS U.S. Treasury 5.14% 5.27% 5.32% 5.36%
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Orchard Park, NY |
#86
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It was grandfathered in back in 1981.
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Identifying as Mr. Helpful |
#87
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#88
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I rest my case.
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#89
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It is too bad that these rates are a result of the Fed trying to play catch-up with inflation……when they have let stupidly low rates ride for years and years. That simply could not continue and now we are seeing the fallout.
But, hey, I will take these CD rates and play the short-term game. I recently bought Schwab and Truist and will be shopping again soon. (I did not buy into the BOC because I simply did not want to. I had looked up that FDIC thing for them just to see WTH? It has been there a loooong time.) To each his/her own though. I understandand, and I would never try to tell anyone else where to put their money. If they ask me, I do share a very general idea of what I do. We all have our own risk tolerance and we should behave accordingly. I have only 2 rules for when it comes to where to put money: 1.) Know Thyself and 2.) Understand what you are buying. Boomer Last edited by Boomer; 03-15-2023 at 03:43 PM. |
#90
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FDIC insurance has never made sense to me. The limit is $250K per account, but you can set up about 4 or more different accounts with different names and account types and easily get millions in coverage. And if you want more coverage, you can just open accounts in different banks. Apparently, foreign banks can sell FDIC insured products if they do business in the U.S. Obviously, the Government doesn't care about protecting taxpayer money with reasonable insurance limits. Personally, I don't think FDIC insurance is very important as long as you spread your investments around and diversify.
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