Are you so loaded that you exceed the FDIC’s guarantee limit for deposits? Consider the Certificate of Deposit Account Registry Service. Deposit the funds at one of 2,500 CDARS member banks and they’ll automatically spread your cash among other member banks as needed to stay within FDIC coverage limits. Kiplinger says, “You’ll earn one rate (set by the home bank) and get one statement and one form at tax time.” [Kiplinger]


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  1. Preyfar says:

    That’s actually kinda spiffy. Now, all I need to do is win the lottery…

  2. RogerDucky says:

    Like the “triple play” thing from cable and phone companies, this one just makes it “easier” for the consumer while making sure that banks got the money for the entirety of the term. Most of the banks listed are small regional banks, so it’s not likely you’d get the most competitive rates in the first place. So, all you’re really doing is swapping higher rates for convenience.

    Besides, as those who actually got the money knows, it’s always a bad idea to put all your money into a few CDs — all your money’s “tied up” (non-liquid) if you do that. It’s actually saner to get multiple CDs with different terms so you’d always have parts of your money liquid. Also, by having accounts at multiple banks, you’d be more likely to know what the rates at the other banks are when you go in to negotiate the rates of a CD that matured. (Yes, the rates are negotiable — the “manager” can usually either match another bank’s CD rates, or adjust it upwards by about a half percent if you ask nicely.)

    So, great for the lazy accountant, but not so great if you want to actually get a terrific rate.

    • MickeyMoo says:

      @RogerDucky: Depends on the bank – went to renew @ Wells last week and they were offering a WHOPPING 2% less than Sterling and 1st Republic – all the manager was able to do (and we asked VERY nicely) was give .25% more – hardly competitive.

    • crackalacker says:

      @RogerDucky: I just helped my grandma get set up on this, She is getting 2.5% on a 28 day CD, we couldn’t find any better than that.

  3. Anonymous says:

    Honestly, if you have that amount of money in banks, you’d be pretty dumb to do this. First off, if you really want all your money in CDs, you’ll get a much better rate shopping around for yourself. Second off…dude if you have that much free money around, if you’re not planning on needing it soon, now’s the time to buy stocks. It’s not like anyone else can afford it at the moment, so the prices are about as low as they’re going to go. I’d suggest an index fund, but then I like index funds because I’m lazy.

  4. jpmoney says:

    Thanks for posting this. I know its hard to think that someone would have this much money and not already have someone doing this for them. A family member just settled a lawsuit (non-frivolous, not obnoxious) and they have a fair chunk of change coming to them. I’ve been looking at what they should do with it and this is a lot of help.

  5. laserjobs says:

    Also look for brokered CDs through a broerage house, you can get better rates with FDIC insurance upto $50 million

    • MickeyMoo says:

      @laserjobs: Proceed with CAUTION!!! A friend got totally screwed by a CD broker – turns out that a portion of her deposit was not FDIC insured – someone skipped town with a lot of money and she’s left high and dry.

  6. kittenfoo says:

    Thank goodness. I’ve been wondering what to do with all those coffee cans full of money stashed all over the house …

  7. juri squared says:

    Another viable idea is to send the money to me. Your return will be in the form of hugs and cookies.

  8. Robobagins says:

    Holy cow thanks. It’s always good to have more options on the table. When I heard the FDIC might be bumping limits up it gave me some hope, but this is good info.

  9. kwsventures says:

    Institutions have been using CDARS for years.

  10. stevejust says:

    I got a letter about two weeks ago from SmithBarney/Citi explaining how they automatically adjust deposits so that $750,000 of my… um… “money” is automatically protected.

    Now… if only I had $750,000!

  11. johnva says:

    Another option might be T-bills or Treasury bonds. Still government-backed (though who knows what that’s worth nowadays), may have tax advantages, and don’t have a limit.

  12. sspeedracer says:

    Only an idiot would keep that much liquid in USD’s! Gold, Silver, Foreign Currency, anything else is better than USD.

    FDIC limit should only be an issue if your net assets are greater than 10M and you need to move cash in the near term.

    • stevejust says:

      @sspeedracer: Anything? Really?

      I’ll sell you some Iraqi or Iranian Dinars, or some Icelandic Kronas right now for your dollars. I’ll even round up the exchange rates to the nearest tenth of a cent.

  13. Mikestan says:

    I would have expected to find a post like this on

  14. banmojo says:

    what about those of us who OWE many times over 100,000$ due to, oh, you know, going to college/grad school, buying a house, etc. how come the FDIC doesn’t insure all THAT money. I joke, I kid, but seriously, with all this talk of bailouts, I’m so sick of this shit already. Why throw billions, ultimately TRILLIONS of dollars at failed companies, when the gov could FORGIVE THE STUDENT LOAN DEBT ACROSS THE BOARD. Talk about stimulating the f$#@ing economy. Put THAT in your think tanks and spin it around a little bit.

    My ass is so sore from getting f$#@ed by our dearly beloved government already ….

  15. Anonymous says:

    Luckily where I live in British Columbia, Canada the government just changed their guarantee to provide unlimited protection to deposits held by credit unions.