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Author: mhtyler Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 19483  
Subject: Re: CDs vs. Bonds Date: 6/17/2000 3:12 AM
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I don't know much about this, so I'll be interested to see others respond about the CD vs. Bond question.

However, I've been researching it a bit. FDIC insures your CD alright, but I gather that they aren't exactly qick off the dime to get you your principle back. So if a default occurs...which I gather is infrequent...then you can count on 100 this instance...sitting on the sidelines for a respectable period of time while civil servants sort it out. And I also understand...and you may already be aware of this, that the interest is not insured.

If the above analysis is correct, and to the best of my knowledge it is, CD's are technically safer than most bonds other than treasuries, but they have their own call loopholes, and if you pick a bank out in BF Egypt you could get burned. Comments on my comments?
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