Advertisement
Financial Planning

Supersafe Ways to Stash Wads of Cash

Expanded deposit insurance is just one of your new tools.

Many depositors feel safer now that the Federal Deposit Insurance Corp. has, at least through 2009, raised insurance limits from $100,000 to $250,000 per individual account. Joint accounts are covered at $250,000 per co-owner; retirement accounts, up to $250,000; and trust accounts, up to $250,000 per beneficiary.

Not enough? Stretch your coverage by spreading cash among several banks. A couple of services will help you do this without sacrificing your shoe leather.

Advertisement - Article continues below

The Certificate of Deposit Account Registry Service, or CDARS, can cover up to $50 million in deposits, working with a network of some 2,500 banks. To find a CDARS member bank near you, visit www.cdars.com. You can choose maturities from four weeks to five years. The home bank will split your deposit among as many banks as necessary, and you can strike any you don't want to use (one you're already using, for instance, lest you go over FDIC limits). You'll earn one rate (set by the home bank) and get one statement and one form at tax time.

FolioFn, an online securities firm, works with 22 banks. That means you can insure up to $5.5 million in cash held in various FolioFn accounts -- trading, retirement, trust and so on. Pending deals could push the limit to $7 million. Your cash is deposited into money-market accounts at the banks. Funds are available on demand, so the money earns a relatively low rate -- recently just 1.09% at the top end of FolioFn's range of options. You must be a member -- at a cost of $29 a month -- to use its extended FDIC coverage.

Advertisement
Advertisement

Most Popular

Medicare Basics: 11 Things You Need to Know
Medicare

Medicare Basics: 11 Things You Need to Know

There's Medicare Part A, Part B, Part D, medigap plans, Medicare Advantage plans and so on. We sort out the confusion about signing up for Medicare --…
September 16, 2020
5 Unfortunate Estate Planning Myths You Probably Believe
estate planning

5 Unfortunate Estate Planning Myths You Probably Believe

These all-too-common misconceptions can steer your estate plans in the wrong direction right from the start. Here’s how to overcome them and tips to b…
September 17, 2020
Election 2020: Joe Biden's Tax Plans
taxes

Election 2020: Joe Biden's Tax Plans

With the economy in trouble, tax policy takes on added importance in the 2020 presidential election. So, let's take a look at what Joe Biden has said …
September 18, 2020

Recommended

Retirees, Create An Emergency Fund for Rental Property
Business Costs & Regulation

Retirees, Create An Emergency Fund for Rental Property

Build a cushion to protect your income from an unforeseen crisis.
September 15, 2020
25 Small Towns With Big Millionaire Populations
investing

25 Small Towns With Big Millionaire Populations

Large concentrations of high-net-worth households are found in surprising locales across the U.S. Check out the latest list of American small towns te…
September 15, 2020
Bankruptcy Filings Chalked Up to COVID-19
investing

Bankruptcy Filings Chalked Up to COVID-19

Bankruptcy filings pile ever higher as the COVID-19 pandemic continues to weigh on the American economy. Here are 24 big-name companies that have soug…
September 11, 2020
What Does the Upcoming Election Mean to Your Investments?
investing

What Does the Upcoming Election Mean to Your Investments?

For smart investors, the surprising answer may be very little. Here’s why, and what you should do (and not do) as election season heats up.
September 11, 2020