Insuring Association's Money

Started by AmarP • 3 replies • 339 views

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AmarP (Florida)
Posts: 9

Posted:

We are suffering from having to maintain too many bank accounts, and then having to move the money around and account for it. Part of the reason is to protect our $ by FDIC Insurance and they have a limit of $250K. Any suggestions?

MichaelS56 (Minnesota)
Posts: 859

Posted:

Our Association uses a Management company to handle the Operations side of the money, while the Board handles the CD investment side of the money. Our Board treasurer has the rights to transfer money from the investment accounts to an account in the budget to pay for Replacement Reserve projects. Our Board builds the annual budget and the Property Management implements the payments.

AmarP (Florida)
Posts: 9

Posted:

Thanks, very helpful.

CathyA3 (Ohio)
Posts: 6,299

Posted:

Suggestions:

* A number of financial institutions offer a program called CDARS, which is a way to have FDIC insurance on amounts greater than $250,000. The money is actually spread around through multiple institutions, but the customer only does business with the bank offering the program.

https://www.cdars.com/home/how-cdars-works

* Some institutions (banks and credit unions) offer supplemental insurance on top of either FDIC or NCUA insurance (the latter is the FDIC equivalent for federally insured credit unions). This additional insurance can protect deposits up to $500,000 (last time I looked).

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