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Author: tommiez Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 19221  
Subject: Safety of Certificate of Deposits? Date: 1/19/2000 11:15 PM
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Can someone please tell me if an FDIC insured internet bank is as safe (for a 5 yr CD) as a traditional walk-thru bank in the event of a bank failure. The internet banks appear to offer a higher rate of return on CD's and according to bankrate.com's rating sources, many of them are rated "sound," as well. My concern is that they don't have the backing of a "real" bank and have only been functioning for a very short time. Thank you for any feedback.
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Author: intercst Big funky green star, 20000 posts Top Favorite Fools Top Recommended Fools Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 1661 of 19221
Subject: Re: Safety of Certificate of Deposits? Date: 1/20/2000 12:51 AM
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tommiez asks,

Can someone please tell me if an FDIC insured internet bank is as safe (for a 5 yr CD) as a traditional walk-thru bank in the event of a bank failure. The internet banks appear to offer a higher rate of return on CD's and according to bankrate.com's rating sources, many of them are rated "sound," as well. My concern is that they don't have the backing of a "real" bank and have only been functioning for a very short time. Thank you for any feedback.

As long as you are sure that the "Internet bank" is really FDIC-insured and they are not just putting the FDIC logo on their marketing materials, the guarantee is the same. FDIC insurance isn't dependant on the length of time the bank has been in operation.

intercst

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Author: BigLon One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 1677 of 19221
Subject: Re: Safety of Certificate of Deposits? Date: 1/21/2000 3:22 AM
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There should not be any problem if it's truly FDIC insured. True internet banks don't have the overhead of traditional banks and thus, higer returns. I have had an internet bank as my ONLY bank for over two years
and as I sit here in New Zealand I find it most convenient to be able to access not only my bank, but my on line broker and the "Motley Fool" group.

Cheers------from a Retired Fool

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