I'm interested in opening a CD account for between 6 months to 1yr via a virtual bank (www.netbank.com, www.wingspanbank.com, etc)
They are FDIC insured accounts but I'm curious if a bank does go broke, what the process is to recover your money via FDIC? How long does it take for them to pay you?
I went to FDIC's page and they weren't too clear. The thing is, I need the money in the next 12 months and I would be much worse off if I had to wait 2 years for FDIC to sort out the mess and pay me.
CDs are supposed to be low risk but the financial statements of these online banks don't look as 'secure' as the ones for much larger banks. The APY rates look just great though.
Any info anyone could provide would be helpful.
Thanks in advance to anyone that may be able to help ...
They are FDIC insured accounts but I'm curious if a bank does go broke, what the process is to recover your money via FDIC? How long does it take for them to pay you?
I went to FDIC's page and they weren't too clear. The thing is, I need the money in the next 12 months and I would be much worse off if I had to wait 2 years for FDIC to sort out the mess and pay me.
CDs are supposed to be low risk but the financial statements of these online banks don't look as 'secure' as the ones for much larger banks. The APY rates look just great though.
Any info anyone could provide would be helpful.
Thanks in advance to anyone that may be able to help ...
Facebook
Twitter