Thinking about a CD. How safe are the non-brick & mortar banks like eLoan or NetBank for opening up CDs?
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Answer:
The truth is more and more banks are entering the internet to save money on manpower and leasing space. As long as your bank account is FDIC insured (also noting you do not put more than $100,000 in it) and you contact the Better Business Bureau to confirm the bank's reliability, then there should be no problem. It's just like making an account with an out-of-state bank, mail them a check, make sure to get all your info faxed or mailed to you, and make sure you get the name of your bank officer for future reference.
Also, check out Money magazine and Kiplinger's Personal Finance for other banks' rates, last time I checked none of the CD rates were less than 5 %.
i dont think cds are fdic insured. find the highest rate.
if it sounds to good to be true it probablt is, those types of banks are great for loans but you should stick with a bank on cd's and mutual funds. ask about share accounts and dream shares, those type of investments can be started with little and retun alot if you're deligent and disciplined.
They are FDIC insured and regulated by the feds, so they are as safe as your local bank.
Good luck
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