Beneficiary listing
We have our children listed as POD (paid on death) on many CDs. Is that the same as a regular beneficiary? I can’t see the difference. But one thing I have learned with all this …. there are twists and turns I don’t know about. So I ask.
Permalink Submitted by Alan Spross on Wed, 2011-01-12 00:27
Yes, it is the essentially the same, ie the CDs would avoid probate and pass directly to those PODs listed. PODs are basic trusts and referred to as such relative to FDIC or NCUA insurance limits. Each POD generates it’s own 250k FDIC insurance limit, which would allow you to have a larger principal amount and avoid splitting up the CDs. Upon your death, the bank may or may not extend the interest rate to the beneficiarys if the rates were lower at the time. Probably not much chance of them being lower that today’s rates.