Extending FDIC and NCUA deposit insurance
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?
I look to the present moment because that's where I live my life.