Add this acronym to your financial lexicon - CDARS

September 26, 2008 01:42 PM EDT

views: 47 | rating: 10/10 (2 votes) | comments: 4

By now most people know there is another bank failure in the news.

Hopefully everyone has understands the FDIC $100,000 insured limit.

But what if you have a large CD: over 100K?

Good news - the answer is a CDARS.

CDARS stands for Certificate of Deposit Account Registry Service. Rules put in place in 2006 allow up to $50 MILLION in CDs in one bank to be insured.

The way it works is your bank enters into a deal with other banks to share the in

insurance liablity of assets. YOu get to keep your money in one CD, but it is insured as if it was split across multiple banks.

If you or your elderly parents have a big nest egg in a CD, check it out.

For a more complete information, read this article on bankrate.com

http://www.bankrate.com/brm/news/sav/20030820a1.asp?caret=4

Tags: bank, finance, savings, cd, insurance, fdic, money management, assets

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Comments: 4

Richard Frisbie Sep 26, 2008, 2:07pm EDT

Good to know, Pat - Thanks!

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Alexis Newell Sep 26, 2008, 2:27pm EDT

Thanks, I'll definitely have to look more into it. That would be awesome if I had enough in CD to start worrying about the 51st million being insured, but such is life...thanks for the info.

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Pat D. Sep 26, 2008, 2:35pm EDT

I hope this helps some people. I saw an article on CNN about a woman who lost 20% of here savings, just because she was not informed. Things like that just don't need to happen.

I should clarify one point:
A CD over $100K is not automatically covered by CDARS. You must have the bank set it up that way.

This is the kind of thing where you need to talk to the banker, and be sure you are getting what you need.

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Randee "The Court Jester of LaLa Land ! ! !" always and forever, I just want to celebrate Oct 8, 2008, 9:03am EDT

that's all great but I have seen that the FDIC says by the end of the year another 200 financial institutions will fail...............who's going to be there to help ? ? ?

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