CDARS Keeps CD Savings Below FDIC Limits

With the recent spike in bank failures, some wonder if their money is safe. The FDIC insures deposits up to a certain limit, but what if you have a lot of money to insure? You can spread it around to different banks, but you'd have to fill out applications and manage a pile of statements every month.

The alternative is to have somebody spread the money around for you. CDARS is the Certificate of Deposit Account Registry Service run by Promontory Interfinancial Network, LLC. If you want to have somebody else send your money to different banks and keep everything under FDIC insurance limits, CDARS is an answer. They handle all the negotiations with other banks and put everything on one statement.

To use CDARS, you start with a member bank in the CDARS network. From there, everything is handled for you. You can also hire a financial adviser to use brokered CDs with the same goal in mind.

• CDARS - Manage FDIC Insurance Limits
• How FDIC Insurance Works
• What Happens in a Bank Failure?