[Farmerbob]

I would like to thank everyone for their advice.
The CD is a little under the 100k level but I did not know if Cd's were subject to FDIC protections.

I wonder why, if there is a credit crunch, banks aren’t giving a higher rate to people with money to lend?

[ikka]

The reality is that there isn't a credit crunch.

There are a lot of stupid bets (not investments) that some on Wall Street made that are biting them in the gut.

[memcindoe]

Definitely take to time to check your bank’s rating and be aware also that the FDIC coverage on accounts is per account holder. So, if you have several different accounts, the total amount in all the accounts needs to be under $100K to be covered. As a banker, I can tell you that the smaller community banks and credit unions do tend to be much more conservative in tehir lending, so are far less likely to have riskier loans in their portfolios.

[GoLightly]

I wonder why, if there is a credit crunch, banks aren’t giving a higher rate to people with money to lend?

That question is the exact reason that I gave you the advice that I did. I believe the rates that have been offered by the Fed have resulted in less need for deposits. Why pay more for CD's when they can borrow from the Fed & get a higher rate of profit?

[Kackikat]

There is very little money to lend, and the interest rate to those with great credit is high at this time. The banks have a liquidity problem....there is very little money to loan. Why? Because of what they must keep in Reserve, for loans already made. And because they cannot sell the loans on their books to investers, which is why the Bailout was to buy those mortgage loans...giving banks liquidity to loan. Credit is now at a standstill except for very few.