Q. Is it true that a bank CD that is in trust for children will be protected if the bank fails, even if the amount in the CD is over the FDIC limit?

A. Sometimes. Payable-on-death (POD)  accounts, such as bank CDs or other accounts in trust for a named beneficiary, can be insured over the $100,000 Federal Deposit Insurance Corp. limit, depending on the number of beneficiaries and the amount of the CDs.

"For PODs, each qualified beneficiary is insured up to $100,000," says David Barr,
a spokesman for the FDIC. "So if you have two children, you are covered for $200,000. If you have three children, the coverage is $300,000." Qualified beneficiaries include children, parents, spouses, grandchildren, and siblings.

For more information, call 877-ASK-FDIC or go to the FDIC's Web site.