Skip to main content
No. of Recommendations: 0
"Has anyone actually been thru the situation of bank going bad? What happens? Is your money tied up for awhile?"

Yes, during the savings and loan collapse in the late 80's early 90's. I wondered why savings and loans across the country were offering insured CD's that were yielding 4 to 6 percentage points above treasuries. So I got as many as I could. Lets see, one was S and L was in Florida, yielding 11 percent for 5 years or I invested in some. One to two years later, Crocker Savings and Loan was taken over by some government agency that was set up for all the S and L's that went belley up. I got my CD handed back to me, with accrued interest up to that date. I thought I should have been entitled to the interest for the entire term for the CD (5 years). I wasn't.
If interest rates had gone north instead of south, and Crocker stayed solvent, do you think they would have paid me more interest, or let me out of that CD early with no penalty? Nope.

One other S and L did the same thing to me, can't remember which one it was. I had CD's with 5 or 6 of them, as their offerings on CD's kept getting better and better.
Print the post  


What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.