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Are Interest Rates For Existing Certificates Secure??

Kaight
  |     |   1,192 posts since 2011

In light of today's horrid employment report I have my doubts.  I see two separate classes of concern:

Banks:

My best understanding is banks must pay the APY originally agreed to.  Should they become unable to do so, they go out of business and you get your money back.  At that point, of course, you have lost your existing interest rate.

 

Credit Unions:

Most credit unions have an umbrella escape clause, virtually never invoked, which gives them the right in effect to change CD rates under extraordinary circumstances.

Given conditions in Europe, and given today's shocking jobs report here, all I'm saying is that I'm no longer counting on my existing CDs to "go the distance". 

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Answers
paoli2
  |     |   2,641 posts since 2011
Kaight:  If your "extraordinary" circumstances take effect and we can't depend upon our existing "low rate" CDs going the distance then I think we will have more to worry about than CDs.  The stock market, annuities, and any other investments we might have will be on the ferris wheel with us.  If you think those of us who are handling the Petition are a bit much now, imagine if we were in the thousands having a fit about what was allowed to happen to our country's economy by Washington.  Washington is well aware that they have no more paper to jam into their printing presses but yet every day on the news or internet we hear or read that our country is agreeing to pay billions to other countries!   You have a right to have this fear but if we don't do "something" to stop Washington's abnormal actions ,by trying to vote new people in, we can all be toast in the future.   What good will Federal insurance on our deposits be if they allow the value of our currancy to be trashed? 

I hope my post wasn't to "shrill" for some readers but just try to remember, Kaight brought this valid concern to our attention.  I am just responding to his post.  Thank you.
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