FDIC warns about CD ad claims

The Federal Deposit Insurance Corp. says it has been getting questions about firms advertising high-rate insured CDs.

The ads feature FDIC logos or promises that they are FDIC insured, when in fact the CDs are but the firms themselves aren’t FDIC-insured banks.

The agency advises consumers to look closely at the fine print, where a firm might reveal that the business or some of its products aren’t insured.

Consumers should be aware that there’s more than meets the eye with above-market CD rates. A goal is to lure consumers into buying non-deposit products or services, the FDIC said. The higher-paying CD could be for only a short term, require a minimum amount and require the consumer to visit a company office.

If consumers ask to purchase the advertised CD, they might be escorted to a computer to buy the CD online from an FDIC-insured institution. But the interest rate could be lower than advertised.

Consumers can see whether an institution itself is FDIC insured by going to the agency’s website, www.fdic.gov, and clicking on the “Are my accounts fully insured” tab.