Long Term CD's - What Happens to FDIC Insurance?

[grumpy]

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?

 

[REWahoo]

The $250K amount was made permanent in 2010:

[FONT=arial, helvetica, sans-serif][FONT=Arial, Helvetica, sans-serif][FONT=arial, helvetica, sans-serif]$250,000 Federal Deposit Insurance Amount Now Permanent [/FONT]
[FONT=arial, helvetica, sans-serif]New consumer protection bureau also part of major reform law
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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.
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FDIC: FDIC Consumer News Summer 2010 - $250,000 Federal Deposit Insurance Amount Now Permanent

 

[grumpy]

Rewahoo,

Thanks, don't know how I missed that.

 

[JOHNNIE36]

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.

 

[afntrn56]

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....