Extending FDIC and NCUA deposit insurance

[MJ]

I'm not sure if this ever came up in other threads but I just found out from PFCU that I can extend my insured deposits to multiple of $100k by assigned 1 or more beneficiaries to the financial instruments.

Being single, I thought I couldn't extend the insurance coverage beyond $100k per taxable accounts at a single CU. If I understand this correctly, I could potentially buy a total of $500k CDs insured by NCUA, if I made my father and my 3 brothers the beneficiary to the CDs. Of course that assumes that one would be comfortable with the financial institution and that they were having fanastic interest rates.

I would have put in a few more bucks in the PFCU 5.25% 5 year CDs had I known this sooner.

FDIC appears to have similar rulings.

Here is the statement from NCUA website supporting this;
Additional coverage is available on revocable trust or payable on death accounts. You can now name a parent or sibling as a beneficiary to get separate coverage. Previously, beneficiaries had to be a spouse, child or grandchild. The rules on joint accounts have been simplified. A co-owner’s interest in all joint accounts in the same credit union will be added together and insured up to $100,000.

Anyone know more about this?

MJ

[cute fuzzy bunny]

Sideways question to this:

Anyone really worried about their credit union tanking and taking their money with it?

[MJ]

Quote:

Sideways question to this: Anyone really worried about their credit union tanking and taking their money with it?

TH,

Doesn't that assume that NCUA went belly up and ran out of cash to cover the CU losses?

[unclemick]

The local CU (Boeing??) went belly up with the Aerospace bust in the late 60's before I arrived in New Orleans - while mine in Seattle stayed solvent.

No insurance in those days and a lot of people lost their savings.

[cute fuzzy bunny]

No, I'm just thinking of the folks who keep over $100k in their CU account. I've had 200-500k in my credit union account for months on end. Cant say I ever really worried about the CU going belly up and taking my money with them.

Is that dumb? Except for the S&L disaster in the 80's (which you could see a mile away and months in advance), have there really been a lot of defaults that make this a huge area of concern?

[unclemick]

Nowadays - if I needed to park cash waiting to invest - I probably wouldn't be overly concerned.