Best online bank to invest in a 5 year Jumbo CD, Capital One or Discover Bank?
Thursday, November 4th, 2010
at
7:10 am
Ryan asked:
Which is more viable, Capital One or Discover Bank ?. Both are Credit Card companies. Is either one is danger of failure?
Which is more viable, Capital One or Discover Bank ?. Both are Credit Card companies. Is either one is danger of failure?
Tagged with: Discover Credit • Failure
Filed under: Online Banking
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Clearly you have done your homework Either one is among the highest interest CDs available today. I wouldn’t be to concerned about them failing because your deposit will be insured by the FDIC. Besides that there is really no way to no if they are in danger or not. Typically banks reassure the regulators and depositors that all is well to prevent a run and then one morning the doors are closed with no warning.
If you need more assurance you can check the banks financial records at. You will need to look up their FDIC number
Personally I like Discover Bank. They tend to have higher APY’s and are in no danger what-so-ever of going under. You can check bankrate.com for more information about banks and their rates, or you can visit the bank’s website for information on them.
Are you sure you’re willing to put money away for 5 years for only 5.5% or less a year? That’s only 37% or less after 5 years!
You have $100K and you’d rather NOT buy some dirt cheap stocks or foreclosed homes? (no debt, OUTRIGHT PAID OFF). You don’t need to do it today, you have any of the next 2-3 years to wait for worse forcelosures and lower prices.
How about some gold bricks? Just look at how much gold and silver have appreciated the past 5 years (even today, despite the market price low, you can’t buy bullion unless you pay a good 20%+ premium).
I do not like stocks or houses, but I don’t have more than 20K. If I did, I’d diversify it a few places and you certainly have a lot more chances to play what other people CANNOT today. You worked hard and saved up this chunk of money, seize the opportunity!
If you’ve misread the rules and were not aware of the minimum deposit $100K, let me know, I’ll give you a few simple ways you can flip your money 10-20% realistically every year.