CD and FDIC insurance

Scharnhorst · ‎09-12-2015

Hi
Question about CDs
If I open 2 CD with different banks and combined they worth over 100k limit will they both be FDIC insured? since they say CD is only insured by FDIC upto 100 K but do they mean one CD or any number of CD a single person may own ?

Can I open a CD with another persons name ( family member) on it ? or make it a part of a trust or minimum liability company ?

Thanks

Open123 · ‎09-12-2015

@Scharnhorst wrote:
Hi
Question about CDs
If I open 2 CD with different banks and combined they worth over 100k limit will they both be FDIC insured? since they say CD is only insured by FDIC upto 100 K but do they mean one CD or any number of CD a single person may own ?

Can I open a CD with another persons name ( family member) on it ? or make it a part of a trust or minimum liability company ?

Thanks

I think FDIC is $250K, but that represents everything you hold under a single Bank, not just CDs.

1. FDIC is per Bank. So, if you have CDs with 10 different Banks, each will have the full FDIC Insurance coverage.

2. Aggregate $250K per Bank - regardless of number of CDs.

3. Yes - But, they legall own the asset, and you "may" be subjected to the Gift tax - currently anything above $14K or $28K between you and a Spouse.

4. CDs may be held under LLCs, C Corps, S Corps, and Trusts.

Good Luck!

Anonymous · ‎09-13-2015

@Open123 wrote:
@Scharnhorst wrote:
Hi
Question about CDs
If I open 2 CD with different banks and combined they worth over 100k limit will they both be FDIC insured? since they say CD is only insured by FDIC upto 100 K but do they mean one CD or any number of CD a single person may own ?

Can I open a CD with another persons name ( family member) on it ? or make it a part of a trust or minimum liability company ?

Thanks
I think FDIC is $250K, but that represents everything you hold under a single Bank, not just CDs.

1. FDIC is per Bank. So, if you have CDs with 10 different Banks, each will have the full FDIC Insurance coverage.
2. Aggregate $250K per Bank - regardless of number of CDs.
3. Yes - But, they legall own the asset, and you "may" be subjected to the Gift tax - currently anything above $14K or $28K between you and a Spouse.
4. CDs may be held under LLCs, C Corps, S Corps, and Trusts.

Good Luck!

Yup, aggregate of $250k per depositor, per bank is the rule.

You can have a checking, savings, CD, but the total of all accounts under one bank must equal $250k or less to be covered by FDIC.

Anonymous · ‎09-18-2015

As others have said FDIC coverage is $250k per account signer and/or beneficiary. So lets say you have a joint signer or two beneficiaries named, you would then be covered for $500k. You can easily title accounts to receive over a million in coverage at one bank. Also, many banks participate in what is called CDARs which allows you to structure multiple accounts to receive much more in coverage by brokering out the deposits, however, you still work with just on institution.