A-Wall Street

"Stocks may rise and fall...utilities may crumble...people are no damn good...but they'll pay through the nose for land, land, land," rhapsodized the prophetic Gene Hackman as Lex Luther in 1979's Superman.

Since not all of us have the wherewithal to become real estate moguls, Certificates Of Deposit (or CDs) seem to be the safest and most reliable investment option of late. They're like savings accounts on steroids; let the bank, financial institution or credit union of your choice play with your money for a fixed time period (3-6-12 months, 1-2-3-5 years), and your CD account will garner above-average interest...which you can draw off.

Make sure your funds are FDIC-insured (in whole or in part...Congress just increased the ceiling). The Federal Deposit Insurance Corporation (FDIC) is an independent agency of the United States government that protects against the loss of insured deposits if an FDIC-insured bank or savings association fails. FDIC deposit insurance is backed by the full faith and credit of the United States government. Since the FDIC was established, no depositor has ever lost a single penny of FDIC-insured funds.

FDIC insurance covers funds in deposit accounts, including checking and savings accounts, money market deposit accounts and certificates of deposit (CDs). FDIC insurance does not, however, cover other financial products and services that insured banks may offer, such as stocks, bonds, mutual fund shares, life insurance policies, annuities or municipal securities.

There is no need for depositors to apply for FDIC insurance or even to request it. Coverage is automatic.

To ensure funds are fully protected, depositors should understand their deposit insurance coverage limits. The FDIC provides separate insurance coverage for deposits held in different ownership categories such as single accounts, joint accounts, Individual Retirement Accounts (IRAs) and trust accounts. Deposits accounts owned by corporations, partnerships, unincorporated associations, employee benefit plans and government entities also are covered by FDIC insurance.

Basic FDIC Deposit Insurance Coverage Limits*
Single Accounts (owned by one person)
$250,000 per owner**

Joint Accounts (two or more persons)
$250,000 per co-owner**

IRAs and certain other retirement accounts
$250,000 per owner

Trust Accounts
$250,000 per owner per beneficiary subject to specific limitations and requirements**

Corporation, Partnership and Unincorporated Association Accounts
$250,000 per corporation, partnership or unincorporated association

Employee Benefit Plan Accounts
$250,000 for the non-contingent, ascertainable interest of each participant

Government Accounts
$250,000 per official custodian

* These deposit insurance coverage limits refer to the total of all deposits that an accountholder (or accountholders) has at each FDIC-insured bank. The listing above shows only the most common ownership categories that apply to individual and family deposits, and assumes that all FDIC requirements are met.

** The legislation authorizing the increase in deposit insurance coverage limits makes the change effective October 3, 2008, through December 31, 2009.

Note: As of October 14, 2008, all non-interest bearing transaction deposit accounts at an FDIC-insured institution, including all personal and business checking deposit accounts that do not earn interest, are fully insured for the entire amount in the deposit account. This unlimited insurance coverage is temporary and will remain in effect for participating institutions until December 31, 2009.

If you have questions about FDIC coverage limits and requirements, please visit www.myFDICinsurance.gov, call toll-free 1-877-ASK-FDIC, or ask a representative at your bank.

Here's my pick of the day: Wachovia

Featured Fixed-Rate CD Account Information

There are no fees associated with a Wachovia CD. APY Rate for ZIP code 10011 (New York City...rates are dependent upon address. San Francisco's rates are higher...4.3% APY)

12 Month CD, APY of 4.10%, minimum deposit = $1,000.
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