FDIC Limits Increased
On Oct. 3, President Bush signed into law the Emergency Economic Stabilization Act.
In doing so, he raised FDIC insurance from $100,000 per depositor to $250,000. As a result, associations can purchase Jumbo certificates of deposit up to that amount without fear of losing the original amount deposited if the bank happens to become insolvent.
A Jumbo CD is a certificate of deposit in a very large denomination, usually at a minimum of $100,000. Like a traditional CD, a Jumbo CD is a low-risk investment, provided the amounts are within FDIC limits.
