Some CD investors spread their investments among several banks, but have paperwork from a single source and full FDIC protection.

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When banks collapse, the Federal Deposit Insurance Corp. steps in to make sure depositors get their money back. But there’s a limit: $100,000 for an individual, $100,000 per person in joint accounts, and $250,000 in individual retirement accounts.

So some CD investors are also making sure they don’t rely on a single institution.

Through a program called the Certificate of Deposit Account Registry Service, or CDARS, a person can have accounts larger than $100,000 and still receive FDIC protection. The person can deposit a large sum into a CDARS program at a bank, and then the program divides the money up into CDs at multiple institutions. For example, a person with $500,000 would have five CDs at five different banks, but have paperwork from a single source and full FDIC protection.

Chicago Tribune