Zions Bancorporation

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eddot98
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Zions Bancorporation

Post by eddot98 »

My traditional IRA is at Fidelity and I want to purchase a CD in it. Fidelity has a one year CD through Zions Bancorporation that has an interest rate of 5.35%. I know nothing about them except what I have read on a few websites about their stock price taking a hit. From Zions’ website they seem to be a large regional bank. The total amount I would like to get is over the FDIC limit (my fixed income portion of my portfolio). Would this CD be FDIC insured? Should I split the money into 2 separate CD’s? Should I get one for at Zions for less than the FDIC amount and one from another bank? I haven’t acquired a CD in many years and never in an IRA. Fidelity’s website says that the CD is not callable.
Zions’ website says that they don’t allow CD’s to be acquired in my state and the 1 year CD interest rate is 4.07%. Huh? Should I just forget about Zions?
Thanks for any advice.
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Nestegg_User
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Re: Zions Bancorporation

Post by Nestegg_User »

While I've picked up some from them for various IRA's and also taxable (they have a number of different ones, including some 18 month at 5.4%), I definitely stayed UNDER the FDIC limit for ANY bank. I don't mind having a different CD with a token smaller yield, especially since I have kept my CD's under two years.

Unfortunately, if it's disallowed in your state, I doubt that your brokerage will actually allow you to purchase it. (No problem in my state)
20cm
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Re: Zions Bancorporation

Post by 20cm »

eddot98 wrote: Tue Mar 28, 2023 2:50 pm My traditional IRA is at Fidelity and I want to purchase a CD in it. Fidelity has a one year CD through Zions Bancorporation that has an interest rate of 5.35%. I know nothing about them except what I have read on a few websites about their stock price taking a hit. From Zions’ website they seem to be a large regional bank. The total amount I would like to get is over the FDIC limit (my fixed income portion of my portfolio). Would this CD be FDIC insured? Should I split the money into 2 separate CD’s? Should I get one for at Zions for less than the FDIC amount and one from another bank? I haven’t acquired a CD in many years and never in an IRA. Fidelity’s website says that the CD is not callable.
Zions’ website says that they don’t allow CD’s to be acquired in my state and the 1 year CD interest rate is 4.07%. Huh? Should I just forget about Zions?
Thanks for any advice.
These brokered CDs are insured but only up to the FDIC limit. Getting 'two' CDs from the same bank does not increase the limit. It's not even two CDs as such: non-fractional CDs are sold in $1,000 increments and all that matters for FDIC purposes is your total par value, not how many transactions you made. So yes, if you want insurance coverage, you should split anything over the FDIC limit onto another bank or banks.

Regarding the state requirements, Fidelity tags CDs which have state restrictions with a 'SKY' tag in the CD description and you can click on that to see if you are ineligible for that specific CD. Whatever Zions offers to their retail customers directly is irrelevant with regard to the brokered CDs sold through Fidelity or other brokerages.
Last edited by 20cm on Tue Mar 28, 2023 3:02 pm, edited 1 time in total.
student
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Re: Zions Bancorporation

Post by student »

I think it would be wise to stay under the FDIC limit including interest.
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Re: Zions Bancorporation

Post by eddot98 »

Nestegg_User wrote: Tue Mar 28, 2023 2:54 pm While I've picked up some from them for various IRA's and also taxable (they have a number of different ones, including some 18 month at 5.4%), I definitely stayed UNDER the FDIC limit for ANY bank. I don't mind having a different CD with a token smaller yield, especially since I have kept my CD's under two years.

Unfortunately, if it's disallowed in your state, I doubt that your brokerage will actually allow you to purchase it. (No problem in my state)
Thanks to all. While I was pecking out this response on my phone, other helpful comments came in.
I was signed in on the Fidelity mobile app and the Zions CD came up as one that was available to me and Fidelity knows where I live. Might they have some arrangement with Zions that allows purchases anywhere in the country? I suppose that I should call Fidelity and make sure.
I just took a ride to a neighboring state and the Zions CD is not showing up as available.
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Re: Zions Bancorporation

Post by 20cm »

eddot98 wrote: Tue Mar 28, 2023 3:03 pm
Nestegg_User wrote: Tue Mar 28, 2023 2:54 pm While I've picked up some from them for various IRA's and also taxable (they have a number of different ones, including some 18 month at 5.4%), I definitely stayed UNDER the FDIC limit for ANY bank. I don't mind having a different CD with a token smaller yield, especially since I have kept my CD's under two years.

Unfortunately, if it's disallowed in your state, I doubt that your brokerage will actually allow you to purchase it. (No problem in my state)
Thanks to all. While I was pecking out this response on my phone, other helpful comments came in.
I was signed in on the Fidelity mobile app and the Zions CD came up as one that was available to me and Fidelity knows where I live. Might they have some arrangement with Zions that allows purchases anywhere in the country? I suppose that I should call Fidelity and make sure.
I just took a ride to a neighboring state and the Zions CD is not showing up as available.
You don't need to cross-check against the issuing bank's website or call Fidelity. Brokered CDs with restrictions are tagged as such and Fidelity won't let you buy them if your address is in a restricted state.

Your checking of the app from a different state has no effect. You can buy these CDs from any physical location. What matters is your mailing address at Fidelity. The reason you are not seeing the CD now is that Fidelity's whole allocation has been used up. You may see it pop up again from time to time between now and settlement if someone cancels an open order, but generally that happens in small quantities so you're unlikely to catch a full 250 CDs for that specific issue unless Zions increase the allocation. FWIW, none of the other duration Zions CDs currently listed on Fidelity have any state restrictions.
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eddot98
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Re: Zions Bancorporation

Post by eddot98 »

20cm wrote: Tue Mar 28, 2023 3:16 pm
eddot98 wrote: Tue Mar 28, 2023 3:03 pm
Nestegg_User wrote: Tue Mar 28, 2023 2:54 pm While I've picked up some from them for various IRA's and also taxable (they have a number of different ones, including some 18 month at 5.4%), I definitely stayed UNDER the FDIC limit for ANY bank. I don't mind having a different CD with a token smaller yield, especially since I have kept my CD's under two years.

Unfortunately, if it's disallowed in your state, I doubt that your brokerage will actually allow you to purchase it. (No problem in my state)
Thanks to all. While I was pecking out this response on my phone, other helpful comments came in.
I was signed in on the Fidelity mobile app and the Zions CD came up as one that was available to me and Fidelity knows where I live. Might they have some arrangement with Zions that allows purchases anywhere in the country? I suppose that I should call Fidelity and make sure.
I just took a ride to a neighboring state and the Zions CD is not showing up as available.
You don't need to cross-check against the issuing bank's website or call Fidelity. Brokered CDs with restrictions are tagged as such and Fidelity won't let you buy them if your address is in a restricted state.

Your checking of the app from a different state has no effect. You can buy these CDs from any physical location. What matters is your mailing address at Fidelity. The reason you are not seeing the CD now is that Fidelity's whole allocation has been used up. You may see it pop up again from time to time between now and settlement if someone cancels an open order, but generally that happens in small quantities so you're unlikely to catch a full 250 CDs for that specific issue unless Zions increase the allocation. FWIW, none of the other duration Zions CDs currently listed on Fidelity have any state restrictions.
Thanks for the explanation. I’m learning something new and your post is very helpful.
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Re: Zions Bancorporation

Post by Call_Me_Op »

student wrote: Tue Mar 28, 2023 3:01 pm I think it would be wise to stay under the FDIC limit including interest.
Interest is not reinvested in brokered CDs.
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Re: Zions Bancorporation

Post by Mel Lindauer »

If you're married, you can double the FDIC coverage if you buy one and your wife buys one, with each of them being for $250k or less.
Best Regards - Mel | | Semper Fi
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Re: Zions Bancorporation

Post by student »

Call_Me_Op wrote: Tue Mar 28, 2023 3:53 pm
student wrote: Tue Mar 28, 2023 3:01 pm I think it would be wise to stay under the FDIC limit including interest.
Interest is not reinvested in brokered CDs.
But it is accrued, right? If someone purchased $200k CD, then if there is an issue, one gets $200k plus accrued interest under FIDC. If the CD is $250k, then there is no room for accrued interest. https://www.fdic.gov/resources/deposit- ... -a-glance/ "FDIC deposit insurance covers the balance of each depositor's account, dollar-for-dollar, up to the insurance limit, including principal and any accrued interest through the date of the insured bank's closing."
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Re: Zions Bancorporation

Post by anonenigma »

Mel Lindauer wrote: Tue Mar 28, 2023 3:53 pm If you're married, you can double the FDIC coverage if you buy one and your wife buys one, with each of them being for $250k or less.
Would it be covered if it's a joint account under $500,000?
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Re: Zions Bancorporation

Post by student »

anonenigma wrote: Tue Mar 28, 2023 4:33 pm
Mel Lindauer wrote: Tue Mar 28, 2023 3:53 pm If you're married, you can double the FDIC coverage if you buy one and your wife buys one, with each of them being for $250k or less.
Would it be covered if it's a joint account under $500,000?
I think so. FDIC deposit insurance covers the balance of each depositor's account, dollar-for-dollar, up to the insurance limit, including principal and any accrued interest through the date of the insured bank's closing. See table under joint accounts. $250,000 per co-owner
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Re: Zions Bancorporation

Post by eddot98 »

Mel Lindauer wrote: Tue Mar 28, 2023 3:53 pm If you're married, you can double the FDIC coverage if you buy one and your wife buys one, with each of them being for $250k or less.
Understood. In this case it’s in my traditional IRA.
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Re: Zions Bancorporation

Post by Mel Lindauer »

student wrote: Tue Mar 28, 2023 4:42 pm
anonenigma wrote: Tue Mar 28, 2023 4:33 pm
Mel Lindauer wrote: Tue Mar 28, 2023 3:53 pm If you're married, you can double the FDIC coverage if you buy one and your wife buys one, with each of them being for $250k or less.
Would it be covered if it's a joint account under $500,000?
I think so. FDIC deposit insurance covers the balance of each depositor's account, dollar-for-dollar, up to the insurance limit, including principal and any accrued interest through the date of the insured bank's closing. See table under joint accounts. $250,000 per co-owner
Yes, that's my understanding of the FDIC rules.
Best Regards - Mel | | Semper Fi
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Re: Zions Bancorporation

Post by eddot98 »

UPDATE:
I just put in an order to purchase a 1 year CD ladder at Fidelity with auto roll. Fidelity couldn’t have made it any easier. They picked the best yielding non callable CD’s for each time period (3, 6, 9, and 12 months) and kept me under the FDIC limit. They will be purchased on 3/31/23. I kept enough money in SPRXX (money market fund) for at least 2 years of RMD’s.
No Zions bank - TIAA and Truist bank CD’s.

Thanks a lot for all the advice.
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Re: Zions Bancorporation

Post by the_wiki »

Zions Bank is the biggest regional Utah bank. Been around in some form since 1873 and they have many physical branches here in Salt Lake City. I wouldn't hesitate to buy a CD from them, but as others have said I'd probably cap it at FDIC limits for ANY bank right now.
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Re: Zions Bancorporation

Post by 20cm »

eddot98 wrote: Wed Mar 29, 2023 9:21 am UPDATE:
I just put in an order to purchase a 1 year CD ladder at Fidelity with auto roll. Fidelity couldn’t have made it any easier. They picked the best yielding non callable CD’s for each time period (3, 6, 9, and 12 months) and kept me under the FDIC limit. They will be purchased on 3/31/23. I kept enough money in SPRXX (money market fund) for at least 2 years of RMD’s.
No Zions bank - TIAA and Truist bank CD’s.

Thanks a lot for all the advice.
One thing to know with regard to Fidelity's auto-roll: they do not consider FDIC limits when they roll into the next CD, so if staying below limits matters to you, you will need to keep an eye on the roll notifications they send you and cancel any purchase that would put you over the limit.
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Re: Zions Bancorporation

Post by Call_Me_Op »

the_wiki wrote: Wed Mar 29, 2023 11:42 am Zions Bank is the biggest regional Utah bank. Been around in some form since 1873 and they have many physical branches here in Salt Lake City. I wouldn't hesitate to buy a CD from them, but as others have said I'd probably cap it at FDIC limits for ANY bank right now.
I picked up some at 5.35%. Anyone worried about an FDIC-insured investment is not being rational IMO.
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Re: Zions Bancorporation

Post by White Coat Investor »

eddot98 wrote: Tue Mar 28, 2023 2:50 pm My traditional IRA is at Fidelity and I want to purchase a CD in it. Fidelity has a one year CD through Zions Bancorporation that has an interest rate of 5.35%. I know nothing about them except what I have read on a few websites about their stock price taking a hit. From Zions’ website they seem to be a large regional bank. The total amount I would like to get is over the FDIC limit (my fixed income portion of my portfolio). Would this CD be FDIC insured? Should I split the money into 2 separate CD’s? Should I get one for at Zions for less than the FDIC amount and one from another bank? I haven’t acquired a CD in many years and never in an IRA. Fidelity’s website says that the CD is not callable.
Zions’ website says that they don’t allow CD’s to be acquired in my state and the 1 year CD interest rate is 4.07%. Huh? Should I just forget about Zions?
Thanks for any advice.
I bank with them and have two accounts there over FDIC limits if that tells you anything. Yes, I know they were/are on the "watch list" for regional banks.

Best practice is to keep accounts and CDs under FDIC limits, but the Fed has at least telegraphed that it is in practice offering unlimited insurance for right now.
1) Invest you must 2) Time is your friend 3) Impulse is your enemy | 4) Basic arithmetic works 5) Stick to simplicity 6) Stay the course
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eddot98
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Re: Zions Bancorporation

Post by eddot98 »

20cm wrote: Wed Mar 29, 2023 12:00 pm
eddot98 wrote: Wed Mar 29, 2023 9:21 am UPDATE:
I just put in an order to purchase a 1 year CD ladder at Fidelity with auto roll. Fidelity couldn’t have made it any easier. They picked the best yielding non callable CD’s for each time period (3, 6, 9, and 12 months) and kept me under the FDIC limit. They will be purchased on 3/31/23. I kept enough money in SPRXX (money market fund) for at least 2 years of RMD’s.
No Zions bank - TIAA and Truist bank CD’s.

Thanks a lot for all the advice.
One thing to know with regard to Fidelity's auto-roll: they do not consider FDIC limits when they roll into the next CD, so if staying below limits matters to you, you will need to keep an eye on the roll notifications they send you and cancel any purchase that would put you over the limit.
Good to know, thank you.
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Re: Zions Bancorporation

Post by eddot98 »

Call_Me_Op wrote: Wed Mar 29, 2023 1:17 pm
the_wiki wrote: Wed Mar 29, 2023 11:42 am Zions Bank is the biggest regional Utah bank. Been around in some form since 1873 and they have many physical branches here in Salt Lake City. I wouldn't hesitate to buy a CD from them, but as others have said I'd probably cap it at FDIC limits for ANY bank right now.
I picked up some at 5.35%. Anyone worried about an FDIC-insured investment is not being rational IMO.
I should have, but my direct rollover didn’t settle until today.
And it was gone.
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