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Thread: Experiences,Recomendations investing in CD,s Online

  1. #1
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    Experiences,Recomendations investing in CD,s Online

    My wife has come to me for advice in getting CD's online, and I feel uncomfortable in the risks involved with banking online.
    It seems the interest rates are double or more then the rates at the Credit Unions and banks in my hometown area.

    Do many of you here get Certificate of Deposits online and how do you know the bank is secure and risk free.

    Thank you, Michael

  2. #2
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    Why wouldn't you just go to a bank in person?

  3. #3
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    Check with the FDIC. They maintain a list of insured institutions.

  4. #4
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    Pat, The interest rates in my area are at less then .5% and have always been low. I see rates at 2.6% online.

  5. #5
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    I will do that Nicholas. Thankyou.
    I am also concerned about the security of my home computer. If someone could find my banking information online,( is that likely or possible), or if my wife opens an email that lets someone into her computer, could they access our CD account?
    I just wonder if many people do get CD's online and feel secure about it.

  6. #6
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    Jul 2014
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    folsom, california
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    i got a cd with 2.5% interest at my local citibank branch about a month ago. however, it has become very hard to find a local branch in my area.....

  7. #7
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    I have some CD's with Synchronybank.com and have fo several years. They are FDIC insured. They use two level security which requires them to either call or text you at a number you register when you open your first account.

    Check them out. Currently offering an APY of 2.65% for 13 month CD. Way better than any thing I can find locally in my area.
    George

    Making sawdust regularly, occasionally a project is completed.

  8. #8
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    I do all my banking, bill paying, mortgage, investments, etc, online and have done so for ages. The only time I've been in a bank in the last 10 years at least is to access my safe deposit box. I don't happen to do CD's but if I did I wouldn't hesitate to do them with an online bank.

    I do take precautions, including using a password manager with strong passwords that are changed frequently, and also use a VPN whenever I access my online accounts. I try not access them from a public access point (e.g. Starbucks), although if I have to for some reason, I just make sure to use the VPN. VPN's used to be somewhat exotic; now they are common, easy to set up and use, and not expensive (but don't use a "free" one).

    Make sure you are running anti-virus/malware software that is up to date. Backup your data files regularly.

    Then make sure you are dealing with a reputable financial institution that has been in the online business long enough that they have an online reputation you can check.

  9. #9
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    Online banking and other financial transactions are the norm at this point and generally are quite safe and secure when you take reasonable care. There's really no great reason to avoid doing business with a credit union, investment firm or bank online when the product you want is available from them. As was already noted, of course...know who you are doing business with.
    --

    The most expensive tool is the one you buy "cheaply" and often...

  10. #10
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    Quote Originally Posted by michael langman View Post
    I will do that Nicholas. Thankyou.
    I am also concerned about the security of my home computer. If someone could find my banking information online,( is that likely or possible), or if my wife opens an email that lets someone into her computer, could they access our CD account?
    I just wonder if many people do get CD's online and feel secure about it.
    I am not a security expert, but as a practical matter I think your accounts are online whether you access them that way or not. I have been banking online since 2000, and have accessed my accounts from all over the world without any problem. You should not do it if you are not comfortable though.

    Within the last couple of years I opened a CD online. I filled out a form on their website, and then they had me print it, sign it, and mail it in with a check. You may be able to call the bank that interests you, ask for an application and do it by mail. If you call and ask the worst they can do is say no.

  11. #11
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    Thankyou Everyone. All this information sounds very positive. I run Malwarebytes on our computers and they seem to keep things very secure for us. They also offer virus protection with their premium plan.
    I will check out Synchronybank George. That is the highest rate I have seen for a cd in a long time.

    Paul forgive my ignorance, but what is a password manager? Is it a program on my computer?

  12. #12
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    Paul, I just read about password managers online. I will definitely be using one when get ready to set up my accounts. Thankyou for mentioning it in your post.

  13. #13
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    Yes, it's a program. Examples would be RoboForm and lastpass. There are many. Features vary, but they all keep an encrypted database of your passwords and can fill in the userid and password semi-automatically on web pages. You log in to the password manager and it takes it from there. Because you don't have to remember the passwords or type them in, there's no reason not to use unique and strong passwords for every different login/account. The program will also generate strong passwords for you using a mix of letters, numbers, special characters etc. Many of the programs offer a way to sync multiple computers and even your phone so you always have access to up to date passwords on all your devices.

  14. #14
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    Professor Dr. SWMBO uses LastPass and has for years.
    --

    The most expensive tool is the one you buy "cheaply" and often...

  15. #15
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    Sep 2016
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    Modesto, CA, USA
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    Depending on your age CD's are not a good investment. We all know Trump would be better off he he had invested his inheritance in index funds instead of trying to make money on his own. Several months ago Schawb had a special deal of set up an online account with no annual fees and no broker fees. So we did that. It is all online even at the office they just hand you a laptop already online to the correct website.
    They set you up with a bank account then you can buy stocks, mutual funds or I am sure CD's.
    Over the last 30 years the worst my mutual funds have done is 0% for the year. They average around 7-15% per year. A index fund will outperform ALL managed mutual funds in the last 60 years since mutual funds were invented.
    The question is when do you want to take money out of the CD. If you are paying off any dept paying down principal is a better return then a CD at today's rates.
    Bill D.

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