Another 5% CD in a Florida Credit Union (3 Year)

[ShokWaveRider]

Community First Credit Union of Florida has a 5% CD that expired Tomorrow. THey are pretty friendly and with beneficiaries are insured to (in my Case) $600k.

Not too bad.

SWR

 

[LovesLife]

SWR,

Regarding the insurance w/ benes: how are the accounts titled? Thanks.

LL

 

[ShokWaveRider]

SWR,

Regarding the insurance w/ benes: how are the accounts titled? Thanks.

LL

Joint in my wife's and my name + direct family as beneficiaries. This is not a problem as our will reads the same.

SWR

 

[LovesLife]

SWR,

I am still confused. I know the key is the beneficiaries, but how exactly did you get passed the FDIC limit? I understand that both you and your spouse can get up to 200K FDIC insurance, but how did adding the beneficiaries increase the amount? Thanks.

LL

 

[MJ]

LL,
CUs are insured by NCUA (the equivalence of FDIC). For example, if you have a number of CDs that = $400k and add 3 POD (pay on death) beneficiaries, this will insure your assets upto $100k x 4 ($400k). If the CU institution goes bankrupt then the primary owner (you) will get back the $400k. If primary owner (you) dies before the CDs matures then the beneficiaries will receive assets. I don't know how this conflicts with existing wills, living trusts etc..

 

[LovesLife]

MJ,

Thank you for explaining that to me. I appreciate it.

LL

 

[MJ]

LL,

I neglected to mention that I do it this way because I am single. If you are married, I believe a couple can get upto either 300k or 400k by dividing your assets as follows

husband 100K
wife 100k
joint account 100k

I'm not sure about this but if a joint account has a primary owner, you might be able to get 2 joint accounts.

 

[ShokWaveRider]

SWR,

I am still confused. I know the key is the beneficiaries, but how exactly did you get passed the FDIC limit? I understand that both you and your spouse can get up to 200K FDIC insurance, but how did adding the beneficiaries increase the amount? Thanks.

LL

NCUA NOT FDIC.....

SWR