by KYW's Salil Gutt
Never has there been more interest in FDIC insurance. With bank failures continuing to mount, investors are scrambling for safe haven. Some are even concerned about the safety of money market funds held in brokerage accounts as these are not covered by FDIC insurance.
Here are two ideas to consider if you are apprehensive.
First. Use the money you have in money market funds to buy CDs through your brokerage account. Ladder the CDs from three month to one year maturities. Make sure the amount in each CD never crosses the now $500,000 of FDIC insurance in jointly held accounts. This way principal and accrued interest is covered by FDIC insurance.
A downside of brokered CDs is you may lose part of the interest accrued,not the principal if the bank bites the dust.
Next. There is a service for those who have larger amounts to invest in CDs and don't want to run around among the various banks. Go to CDARS.com or call 866- 776-6426.
This service will place your CDs for you in participating banks with all deposits covered by FDIC insurance.
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