You are likely the owner of many different types of investment accounts, such as a checking account or IRA. Just as likely, you have a Certificate of Deposit account or are considering investing in one. CDs are a great tool for putting away extra cash and letting it collect a high interest rate over time. You can benefit from a high CD interest rate that generally outperforms traditional savings accounts.
In light of recent economic turmoil, you may have wondered what would happen to your money if your bank went under along with your high interest CD rates. Luckily, there is some protection from such events offered by the Federal Deposit Insurance Corporation (FDIC).
The FDIC preserves confidence in the U.S. financial system by insuring deposits into banks and other financial institutions. They identify risks and solve problems within the system in order to limit the effect a failing financial institution would have on our economy. The total amount the FDIC insures has recently been raised to $250,000. This covers money in any checking, savings or other deposit account, like a CD, combined under a single depositor at any institution.
You can rest assured knowing the your money is safe under the FDIC. When you want to find a CD account with a high interest rate, turn to Flagstaff Banking Rates to do the comparison shopping for you so you can begin building your own safety net.
