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Once you reach that $250,000 limit at your bank, your protection is reduced. As a result, it becomes necessary to find another bank to open another CD. This can be time consuming, and you may be required to open a regular savings account or checking account. In order to make the whole process a little bit easier, you can consider making use of CDARS. CDARS This is a deposit placement service meant to help take the hassle out of opening CD accounts when you want to go beyond the amount of FDIC insurance. Member banks make it a little easier for you. Your bank takes the money, and puts up to $250,000 in a jumbo CD (or smaller CDs if you want). The remainder is sent on to another bank. If you had $300,000 you wanted kept safe in FDIC protected CDs, your CDARS bank would open accounts to the limit, and then send the other $50,000 to a member bank. The other bank would reciprocate by getting $50,000 in CDs from your bank. You get a single statement from your bank, including even the CDs from the other bank. Of course, there are drawbacks to using CDARS. You will pay a price for the convenience. First of all, banks pay a fee to join the network. As a result, you might find that you end up with a lower interest rate. Additionally, the CDs you get from the other bank might actually have lower interest rates than what you could find on your own. As a result, you could miss out on some interest earnings. Shopping Around on Your Own Even though it can be time consuming, and a bit of a hassle, it can be worth it to shop around to find your own CDs. If you have a large amount of capital, and you want to put it in CDs, you can compare highest CD rates in a way that can help you out. You’ll make more money in interest, getting the most bank for your buck. Think about what is the best way to divide your capital up for use in CDs, and consider using a laddering strategy. At some point, interest rates are expected to rise, and a laddering strategy can help you take advantage of higher rates down the road. There are plenty of web sites that can help you open accounts, and plenty of banks and credit unions across the country (and even existing solely online) that will allow you to open CD accounts fairly easily. The Internet has made it possible for you to take control of your own financial destiny. While CDARS can certainly provide you with convenience and the simplicity of a single statement for all your CD accounts, there is something to be said for shopping around and making your own plan. Figure out what is best for you, and then make your decisions based on that. In order to understand further regarding the Highest CD Rates, Best CD Rates, Best CD Rates, best money saving options, TD Bank CD Rates, Chase CD Rates, Bank Rates, current CD rates and CD Rates, Check Out http://highestcdratesinfo.wordpress.com Article Source - http://www.highestcdratesinfo.com/using-cdars-to-invest-more-in-cds
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