to see if your deposits are insured
I faithfully read your articles and also the Bankrate
Web site. I have some money to invest and am leery of where to put
it and also with whom -- stock market, CDs, etc. I don't know much
about investing and am new to the industry. I have searched the FDIC
insured site, from Bankrate, and cannot find ING Direct bank as being
FDIC-insured. It is advertised on TV as well as the Bankrate Web site,
and I have invested a lot of money with ING Direct and now my concern
is are they FDIC-insured? Why aren't they on the list? Should I be
concerned? -- Worried first time investor, Cheryl Cede
To put your mind at ease, qualified deposits
held with ING Bank are FDIC-insured. You can use the Bank
Find function on the FDIC's Web site to find out if a financial
institution, like ING Bank, FSB is FDIC-insured. Clicking on the
FDIC logo on the ING Web site also takes you to relevant FDIC information.
In the bank's account disclosures statement, it says, "First
things first -- whenever you see 'ING DIRECT', it means ING Bank,
FSB." The FDIC site doesn't show anything for ING Direct because
it knows the financial institution as ING Bank, FSB.
You can find information on the bank using Bankrate's
Safe&Sound ratings feature. That feature will also allow
you to review the bank's financial statements and a memorandum on
the bank's financial condition.
One important caveat is to not confuse investment
accounts offered by ING Direct Securities Inc. with FDIC-insured
bank accounts. Mutual-fund investments are not deposits held by
the bank, so they don't carry FDIC insurance. A money market account,
or MMA, held with the bank is FDIC-insured. A money market mutual
fund held in a securities account is not insured.
Don't confuse deposit accounts with investment accounts
and you won't have a problem determining if an account is FDIC-insured.
To learn more about investing, spend a little time at Bloomberg
University or Morningstar's
investor education site. Both sites are free.