Reserve account

Started by AnnS12 • 6 replies • 278 views

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AnnS12 (Wisconsin)
Posts: 67

Posted:

Just wondering what other Associations do when their reserve account balance goes over $250,000.00. Do you keep it all at one bank or divide and put money over $250,000.00 at another institution? We are going to hit the $250,000.00 this year.

Thanks.

AugustinD
Posts: 3,698

Posted:

AFAIC the Board has a fiduciary duty to divvy up what's in the reserve among banks so as to ensure FDIC insurance is in full effect.

KerryL1 (California)
Posts: 14,550

Posted:

We have several reserve accounts.

CathyA3 (Ohio)
Posts: 6,299

Posted:

You can also look for a bank that offers CDARS, which is a program that allows people with accounts in excess of $250,000 to have all of their deposits FDIC insured while having the convenience of dealing with a single bank. The money is actually spread around to other institutions, but the offering bank makes it appear that all deposits are held in that bank.

Not all banks offer this program, so you'll need to shop around.

ND (PA)
Posts: 792

Posted:

In addition to what others have said, ask your financial institution about Additional Private Coverage. Some banks and credit unions offers private deposit insurance (sometimes at no charge) as supplemental coverage for amounts exceeding federal limits.

MichaelS56 (Minnesota)
Posts: 858

Posted:

We have most of our reserve in CD's

ChrisP5 (Missouri)
Posts: 165

Posted:

We place a CD at a new bank each time we get close to 250K at a bank. We looked into a CDARS program but were able to find better interest placing the CDs ourselves.

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