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Long Term CD's - What Happens to FDIC Insurance?
Old 02-14-2012, 06:00 PM   #1
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Long Term CD's - What Happens to FDIC Insurance?

This is not really retirement related but here goes:

I help manage the finances and investments for our home owners association. We recently placed several jumbo CD's for 3 to 5 year terms ($225,000 each). The increased FDIC insurance limit of $250,000 is scheduled to expire after 2013. Does anyone know if these will be "grandfathered" with the higher insurance limit if the increase is not made permanent?
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Old 02-14-2012, 06:12 PM   #2
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The $250K amount was made permanent in 2010:

Quote:
$250,000 Federal Deposit Insurance Amount Now Permanent
New consumer protection bureau also part of major reform law

The far-reaching financial reform law approved by Congress and signed by President Obama in July includes a variety of new protections for bank customers, including a permanent increase in the basic federal deposit insurance limit from at least $100,000 to at least $250,000 per depositor. Under prior law, the basic federal deposit insurance limit was set to revert back to $100,000 on January 1, 2014.

"With this permanent increase of deposit insurance coverage to $250,000, depositors with CDs (certificates of deposit) above $100,000 but below $250,000 will no longer have to worry about losing coverage on those CDs maturing beyond 2013," said FDIC Chairman Sheila C. Bair.
FDIC: FDIC Consumer News Summer 2010 - $250,000 Federal Deposit Insurance Amount Now Permanent
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Old 02-14-2012, 06:23 PM   #3
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Rewahoo,

Thanks, don't know how I missed that.
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Old 02-14-2012, 07:48 PM   #4
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Originally Posted by grumpy View Post
Rewahoo,

Thanks, don't know how I missed that.
I missed that also. Thanks for the post. Now all we need is some good CD rates. I see ads in the paper every day for 3.5% etc. for 6 month CD's.
These are with financial institutions that act as CD finders. Say they are FDIC insured.
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Old 02-14-2012, 11:25 PM   #5
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Originally Posted by JOHNNIE36 View Post
I missed that also. Thanks for the post. Now all we need is some good CD rates. I see ads in the paper every day for 3.5% etc. for 6 month CD's.
These are with financial institutions that act as CD finders. Say they are FDIC insured.
What's that saying... If it sounds to good to be true....
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