Posted by JT-IN on July 18, 2008 at 16:24:35:
In Reply to: ??? Where to put my Cash ??? posted by Peter on July 18, 2008 at 14:54:57:
Why take the risk of whether the private ins co will payoff or not..? What IF... the proverbial what IF... lots of Credit Unions failed, partly due to bad investments and partly due to loss of members if major employers closed their doors. In other words, lots of CU defaults. Do you think that the ins co would be in a position to payoff IF 10 of them failed... or 100...?
Of course I am not saying that they will, in fact most CU's that I know of are stronger than most banks... but they don't have the fed'l charter and I would guess they may not be able to belly up to the fed window to soak up some of that low cost overnight funds... but not for sure on that point.
I would continue to use the CU for checking and small deposits... and the jumbo CD's over to (perceived) safety.
JT-IN