A wares mutual fund you bought at your bank had a big loss in 2008. The bank is FDIC insured, so you reflecting your money is safe.

You need to understand that FDIC surety does not cover investments, such as a stock fund. Federal protection for banks and for credit unions covers deposit accounts, not investment accounts. A store account can be a checking, savings, CD, or money market account. But banks are also allowed to vend investments. Mutual funds are investments. Stocks and exchange traded funds (ETFs) you buy as a consequence a bank are investments. And they have zero insurance. Zero! When you opened the account you quite signed some sort of acknowledgment that you understood this, but those disclosures are gentle to miss. And, of course, there was no guarantee that your friendly bank account executive who was excited to have you makes the investment took the time to slowly and audibly spell things out. When you invest in the stock market whether it be help of a fund you buy at a bank, a credit union, a brokerage, or a fund company you be experiencing no protection against bear market losses.

It is always smart to blow the whistle on buy around for the best-yielding savings accounts, but you need to understand that 2008 was the year of the falling bank in any ev. Banks peg the savings rate they offer consumers to the Federal Save’s Federal Funds Rate. And for more than a year the Federal Supply has been aggressively cutting the Federal Funds Rate. In December 2007, the charge was at 4.25 %. In November 2008, it was down to 1 %, and as I write, there is talk that it may go down to 0 %. So if you are earning more than 1 % or so on a methodical savings account, that’s actually pretty good. I am all for moving your coins to the highest-yielding bank accounts, and you can check Web sites such as www.bankrate.com for banks that put on the market the highest savings rates. But if you have a competitive yield right where you are and it is FDIC insured, I wouldn’t contrive it a huge priority in 2009 to hunt for an extra 0.25 % in yield. But hey, if you be suffering with the time and energy to shop around, go for it. Just remember: Only put your spondulicks in a bank that is FDIC insured or a federally insured credit fusion.

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