From what I’ve learned about FDIC, I wouldn’t put too much faith in it. For a few banks to fail yes, but a larger systemic problem there is no way FDIC will work. With the state of bankings loan loss reserves these days it is worrysome to me.
I’m definately not an expert on CD’s but I thought there were many forms you can purchase, ie foreigh currency, variable rate, equity indexed, etc. As mentioned inflation and taxes can eat any return you may be getting.
What I guess I don’t understand is how can a bank pay you 5% return. This implies to me they are investing that money in something else that pays a higher return (and thus taking on more risk). Just rambling now.
