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Home >> Accounts >> Certificates of Deposit
CDs and Bank Failure
My significant other has two CDs at [name withheld] bank. One is worth $75k and the other, $138k. She has two beneficiaries listed. Her brother and I are listed on the $75k and I am listed on the $138k. We were told by the bank rep that if the bank were to fail, she loses nothing. Is this true?
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 The FDIC just adopted new rules concerning insurance coverage for accounts designated as payable to a named beneficiary on the death of the depositor. The coverage limit is the normal per depositor limit (currently $100,000) multiplied by the number of beneficiaries named in the accounts (in this case, two).
Because the two accounts in your question total $213,000 and there are two beneficiaries named in the account records of the bank for those accounts, the deposit limit would be two times $100,000, or $200,000. There would be $13,000 in uninsured balances in those accounts, according to the FDIC regulations.
Published on BankingQuestions.com 10/02/08
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