CountryWide Savings Account
Jack Ricci
small savings account which is just earning less that 4% I put it in a
7-month CD in CountryWide which pays 5.40% And now I wonder if I did the
right thing. They are in the news lately, and although it is supposedly
FDIC insured, I wonder if it will still be there in December when the CD
matures, and if I should leave it there, or add it to the other, a
better known institution. I am not rich by any means and wanted to have
the money as a ready available cushion in my old age. Any ideas? Thanks.
AllEmailDeletedImmediately
"Jack Ricci" <jrit...@hotmail.com> wrote in message
news:jritch53-A22135...@news.phx.highwinds-media.com...
they claim their banking side is solvent. withdraw it and take the
penalty?
clams casino
It was announced today that Bank of America has taken a $2B stake in
countrywide. Countrywide's stock jumped 19% after the market closed
today - on that news. In a few words, BA bought convertible preferred
stock giving BA a potential 16-17% share of Countrywide. Talk in the
business world is that BA is making out smartly at CW's loss.
That said, I'd move the money elsewhere (in December). CW will survive,
but they are going to take some significant losses - both in the short
run and as a price for having BA essentially bail them out.
It's unlikely that CW will be allowed to prevent withdrawals as that
would likely set off panic. Personally, I don't find a few tenths of
percent yield worth the longer term risk in CW.
My credit union union currently has 5-5.4% CD yields, so I'm sure they
are available elsewhere with a whole lot less long term risk vs. CW.
Then again, CDs don't really make money. After taxes, they essentially
offset inflation. Depending on your age, a good mutual fund is likely a
better option (something like a Fidelity Freedom fund can be a good
conservative, but positive investment).
John Weiss
>I received a small inheritance and instead of adding it to my present
> small savings account which is just earning less that 4% I put it in a
> 7-month CD in CountryWide which pays 5.40% And now I wonder if I did the
> right thing. They are in the news lately, and although it is supposedly
> FDIC insured, I wonder if it will still be there in December when the CD
> matures, and if I should leave it there, or add it to the other, a
> better known institution.
Use the 7 months you have to find an equivalent or better rate with a more
reputable institution. Since the current investment is FDIC insured, leave it
there until it matures; then move it to the next place you've selected.
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"John Weiss" <jrweiss98155nospamatnospamcomcastdotnospamnet> wrote in
message news:u8CdnZypJNJGqFPb...@comcast.com...
anyone on this list ever had to deal with getting money from fdic when a
bank
failed? i haven't, but if it's a govt entity, be prepared to wait and wait
and
wait. if countrywide isn't solvent enough for you, terminate the cd and
take
your money elsewhere.
>
>
>
rick++
However it may take 6-18 months to obtain funds after a bankruptcy.
Its not clear if there would be any earnings during that period
unless you have an automatic renewal contract.
Incidentally last week the LA Times reported a classic "run" of CWF
bank offices by depositors removing their money. Its been rare
since that has happened. From locations mentions in the article
it appears to be Asian immigrants who have more likely had bad
bank experiences in their countries of origin.
George
>
> anyone on this list ever had to deal with getting money from fdic when a
> bank
> failed? i haven't, but if it's a govt entity, be prepared to wait and wait
> and
> wait. if countrywide isn't solvent enough for you, terminate the cd and
> take
> your money elsewhere.
I have. It was when a bunch of S&Ls got in trouble for similar reasons
in the 90s (greed is timeless). The FDIC arranged for another bank to
takeover the operations of the bank I was dealing with that had failed.
They were shutdown for maybe a day or two.
Charles Quinn
A22135.175...@news.phx.highwinds-media.com:
They are insured
GMACbank.com is giving 5.3% on money market and that you could have
access to any time you need it.
--
Charles
The significant problems we face cannot be solved
at the same level of thinking we were at when we
created them. Albert Einstein
OldRoads
> Jack Ricci <jritc...@hotmail.com> wrote in news:jritch53-
> A22135.17591523082...@news.phx.highwinds-media.com:
I'd take it out when the term is up.
This credit crunch is just beginning, and I'm uncomfortable with the
fact that Countrywide is now offering even higher rates on CDs and
money market accounts. They need a huge cash infusion.
Vin - Menotomy Vintage Bicycles
http://OldRoads.com