BUSINESS SPOTLIGHT: Tips on FDIC
from WCBSAM: On-Demand
Before you put your savings into an online-only startup, make sure that they are insured by the Federal Deposit Insurance Corporation. If they are not, your money may not be as safe as they say it is. That was Rafael Rodger, the president of the Business Initiative Cooperation of New York, With some timely advice about where to keep your savings after it was announced that Synapse Technology went bankrupt. It operated banking software for a number of online lenders, and when it went under, the customers suffered. These startups seemed attractive because of their low fees and high returns, but they are not as legitimate as traditional banks. Rafael added, "Although these startups have the look and feel of banks, they are very risky. Visit FDIC.gov for tips, that FDIC.gov. I'm Rob Walsh, and I'm responsible for the Business Spotlight on WCBS 880 News.
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