dougnhi

WaMu on the Brink

A bank that offers a high rate CD should be seen as a warning sign in and of itself. It can imply (indirectly) that the bank is cash strapped. Better financed banks can afford to push the envelope and give less return; that's after all how they make money (differential between long & short terms). Just because they offer a term of 12 months doesn't mean they'll be around for 12. I bought Airline tickets good for a year, and the airline went under in a month. Buyers/depositors beware.