Certificate of Deposit

Question: I have a Certificate Of Deposit?

It is for more than 100K at one bank, Wachovia. I am worried they may fail like Indymac. Is there a way to get out of the CD or restructure it so that I am protected?

Answer: The FDIC insured deposits (regardless of type) up to $100K ($250k for IRA) in any bank. Money over that limit should be moved to another bank (not a branch or the same bank). However, if you withdraw from the CD before the term is up, the bank will charge a penalty.

So you are faced with a choice: Withdraw not with a certain loss or wait until the term ends and risk a possibly greater loss.

Your decision.