How are larger deposits insured by the FDIC?
Since October 3, 2008, the basic limit on federal deposit insurance coverage has temporarily increased from $100,000 to at least $250,000 per depositor. This enhancement will be in effect until December 31, 2013. So, you could run around to many institutions to deposit your funds to receive the same coverage you get using CDARS. Or you can place your large-dollar deposit into CDARS at VCB. We break your funds into smaller amounts and places them with other banks that are members of a special network. Then, those member banks issue CDs in amounts under $250,000 (all CDs scheduled to mature after December 31, 2013 will continue to be placed with Network Members in amounts no larger than $100,000) so that your entire deposit is eligible for FDIC insurance. By working with one member bank, VCB, you can receive insurance from many.
