We are managing our elderly father's estate, and have made a very rookie mistake.
We currently have several hundred thousand dollars in one bank! (Chase Bank) We can move about 250K without penalty, however an additional 600K is in two CD's. So--we are considerably over the FDIC insured limit.
I understand bank failures are unlikely, but we are not comfortable with this risk. Should we take the penalty and cash in one or both CD's? We could add my name to one of the CD's and be insured for 500K total, and only cash out the CD paying the least interest. Is this a good strategy?
Note: At this point, I am unsure what the penalty would be, as they have recently changed the terms for early withdrawal. We have not received any notice of this change of terms, I found this info online. Are they required to abide by the terms in effect at the time of CD purchase?
Any advice is appreciated!