No. of Recommendations: 4
Federal law requires the FDIC to make payment as soon as possible. Historically, the FDIC pays insurance within a few days after a bank closing either by establishing an account at another insured bank or by providing a check. Deposits purchased through a broker may take longer to be paid because the FDIC may need to obtain the broker's records to determine insurance coverage.

I think the real issue would be if there is such massive bank failure, FDIC doesn't have the capital on hand to cover it. This seems unlikely at this point, but the question remains whether, for a one year CD, getting the highest available rate is worth any level of anxiety.
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