Keeping Your Cash Safe
Sunday, November 16, 2008
Many depositors feel safer now that the Federal Deposit Insurance Corp. has, at least through 2009, raised insurance limits from $100,000 to $250,000 per individual account. Joint accounts are covered at $250,000 per co-owner; retirement accounts, up to $250,000; and trust accounts, up to $250,000 per beneficiary.
Not enough? Stretch your coverage by spreading cash among several banks. A couple of services will help you do this without sacrificing your shoe leather.
The Certificate of Deposit Account Registry Service, or CDARS, can cover up to $50 million in deposits, working with a network of some 2,500 banks. To find a CDARS member bank near you, visit http:/
FolioFn, an online securities firm, works with 22 banks. That means you can insure up to $5.5 million in cash held in various FolioFn accounts -- trading, retirement, trust and so on. Pending deals could push the limit to $7 million. Your cash is deposited into money-market accounts at the banks. Funds are available on demand, so the money earns a relatively low rate -- recently just 1.09 percent at the top end of FolioFn's range of options. You must be a member -- at a cost of $29 a month -- to use its extended FDIC coverage.