Bank Bankrupcy--Effect on CDs

Q: When a a big lending firm like Countywide Bank (through rumors) might file for bankruptcy because people are not paying their house mortgages. If they file for bankruptcy would that have any effect on CD's that they handle. Do you have any good rates on 6 to 9 months CD's? $40,000.00 worth.

A: There is a difference between Countrywide the mortgage company and Countrywide the bank. The CDs at the bank are FDIC insured which means that they are protected in the event the bank fails up to the Federal limit.

You should be able to do a Google search and find CD rates. I also believe that the Wall Street Journal and other publications regularly publish the banks paying the most on CDs.

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