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The Easiest Way to Insure Your Bank Deposits Beyond $100,000

By Erik Folgate

You know that the economy is on shaky ground when the hottest topic in personal finance is making sure your bank deposits are insured. Many of us never think about what would happen to our money if our bank closed its doors. Almost all traditional commercial banks insured their deposit accounts up to $100,000, which is enough coverage for the average citizen. However, some of you are blessed with an abundance of money and $100,000 might not be enough. Many small businesses carry bank deposit balances over $100,000 as well. Traditionally, the only way to make sure you are fully insured is to spread out your money to multiple banks in $100,000 increments. In fact, Clark Howard suggests that you spread it out in increments of $90,000 to account for the interest you’ll accrue on the money. So, if the worst happens and your bank closes up shop, you’ll insure your interest as well.

Never fear, because there is a company that came up with a solution for individuals and businesses who need more than $100,000 in deposit protection. The company is called CDARS, and they will insure your money up to $50 million dollars. Go to their website and locate the bank nearest you that participates in the CDARS program. CDARS will take your money and disburse your money into various CDs up to $90k to $100k for each CD. They take the hassle out of disbursing the money yourself. You get one interest rate and one statement. There are no hidden fees.

If you are a small business owner, I strongly suggest that you sign up for this program at the bank closest to you. With the way the bad debts from the housing market are affecting investment and commercial banks, you can never be too safe with your deposits. Don’t be like one of the thousands of IndyMac customers that lost a portion of their deposits, because they did not have enough FDIC insurance.

Erik Folgate
Erik and his wife, Lindzee, live in Orlando, Florida with a baby boy on the way. Erik works as an account manager for a marketing company, and considers counseling friends, family and the readers of Money Crashers his personal ministry to others. Erik became passionate about personal finance and helping others make wise financial decisions after racking up over $20k in credit card and student loan debt within the first two years of college.

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  • Wealth for Investors

    You know what being in Canada i never even thought of this.. it’s kinda making me paranoid.
    spreading my money should be a priority.
    Diversifying bank accounts !

    Excellent read.

  • http://www.compounding-dividends.com Jake

    Good to hear. I don’t curently have that “problem” and most of my money is invested but it’s good to know that this exists. Thanks

    • http://madsaver.com Mac

      Nor do I have this “problem” as well. Good to know if compound interest finally works its magic or if I start a profitable business.

  • http://www.artificialrobot.com Sean

    While, I also don’t have the problem of having over 100k in one bank account it seems to me that it’s an easy enough thing to spread you money around in 90k increments across multiple banks on your own. Hell, I have far short of 100k and I spread my money around over multiple accounts just based on what each one offers. If you live in a medium sized town I would think that there are enough great local institutions that offer you FDIC or NCUA protection for your money up to 250k that you can easily spread your money around to its fullest protection. If you have this problem go and do some research before paying someone to do it for you, you may save yourself some cash…

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