|Posted: March 31, 2010, 9:45 am - IP Logged|
That sounds like a good idea. I was once worried about the FDIC insurance only being $250,000 but with CDARS that won't be a problem.
What are the chances of the bank losing your millions of dollars though? I think that if you bank with the bigger banks you'll be okay.
From what I understand, and someone correct me if i'm wrong, the CDARS bank does basically the same thing you would do, it puts your CD money into multiple other banks. They just do the work for you and keep track of your funds, for a fee. I'm sure they give you a list of the banks your money is in and you have full access to it. The CDARS bank does not actually have your money, unless you invest in a CD with their bank as well.
Bigger banks do not do CDARS. Smaller banks do this as a service to make money because obviously they aren't going to be able to loan someone millions of dollars and make a ton of interest like the bigger banks do.