Does the FDIC protect more than 1 CD Account over $100,000?
Answer:
You are protected up to 100K for each institution that you have a CD in. So if you had 10, 10k CD's in one bank, they would all be covered. If you had 10, 100k CD's, each in a different institution, then still all 10 would be covered if all the institutions went under. But not if all 10 100k CD's were in the same institution.
Each CD will be covered, BUT (always that "but" isn't there?), they must be through separate banking institutions. There is another way but I'm not savvy enough about high finance to understand it.Talk to your banking institution about "collateralization"...
If they are all spread out at different banks, yes they are protected. If they are spread out at different branches of the same bank or even separate CD's at the same branch, all in your name, then no, only the first $100,000 is protected.
buy t-bills instead. They are safer and are marketable and free from state and local taxes so you wind up netting more after taxes, sometimes considerably more.
Remember, the FDIC limits are per registration per financial institution. In other words, you could exceed the $100,000 with one bank so long as you changed the way the account is registered (IRA, joint, POD, etc.)
This is part of the reason that folks will open various accounts with various banks (so they can have more than $100,000 protected).
www.FDIC.gov
FDIC insurance is based on their definition of a "depositor". Therefore if John Doe has a checking account with $60,000 on deposit and also a savings account in the same bank with $60,000 on deposit, insurance is limited to $100,000.
There are ways to structure your deposits to increase the insurance coverage. For example: John Doe is insured up to $100,000. His wife Jane Doe is also insured up to $100,000. If this is truly a concern ask a personal banker, he or she should be able to help you.
Don't you hate unsolicited sales come-ons? Annuities are fine for some people, but they are different than bank deposit accounts.
Be sure to ask the annuity salesman about early withdrawal penalties, I assure you there are always early withdrawal penalties. Also ask if the return is fixed or floating. Fixed based on what? Floating based on what? What happens if the company issuing the annuity goes bankrupt? Is there any insurance or recourse if the company goes bye-bye before you withdraw the money?
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