Open Forum → Re: What to do with $20,000

I would stay away from anything that Countrywide offers...

I disagree. The lenders that are in trouble are offering great rates. As long as your funds are fully FDIC insured you'll be fine.

"The truth is that federal law requires the FDIC to pay the insured deposits "as soon as possible" after an insured bank fails. Historically, the FDIC pays insured deposits within a few days after a bank closes, usually the next business day. In most cases, the FDIC will provide each depositor with a new account at another insured bank. Or, if arrangements cannot be made with another institution, the FDIC will issue a check to each depositor."

»www.fdic.gov/consumers/c ··· ory.html

Countrywide Savings Link rate for LIQUID money...you can take it in or out at any time...is 5.5% right now ($10k minimum). As far as claims that Countrywide may or may not go under...you always have the backing of FDIC (up to $100k) plus the knowledge that BofA has invested $Billions in them to keep them afloat. 5.5% can't really be beat right now for liquid money. FNBO just DROPPED their savings rate from 6% down to 5.05%.

FDIC insured or not, you are still making an investment.

Does it make sense to invest with Countrywide (or some of the others) given their current (or market) problems? Is that extra 10th worth it?

Even though BoA put up billions, is it any less risky?

I ask this not to say its wrong, but mainly because I have had, & continue to have $$ with them .

If they go under, how long will it take before the FDIC pays out? Here in MD, I remember when the Savings & Loans all went to pot, & the length of time it took before anyone was able to get their money back (not FDIC, but State insured).

If your $20K happened to be in one of the S&L's & you needed it to purchase a house, guess what ...

"When the Maryland, US state savings and loan system collapsed in 1985, the underfunded insurance system took more than a year to refund deposits to account-holders at the institutions that failed."
»en.wikipedia.org/wiki/Bank_run