This is actually a serious problem with the PODs that should be addressed. The banks holding the CDs apparently have no obligation to notify the POD even if the bank learns of the account holder's death. Thus, the PODs might never get the money -- because, for any number of reasons, they might never have been let know by the account holder that they are the designees! I've never even had a bank wanting to know how to get in touch with the POD if I should die, and if I offer the info, they won't take it.
If the bank does not know of the death, the account in time would go dormant and have to be turned over to the state -- after the bank, of course, has spent some time taking out dormancy fees. But the states do nothing to find and notify anyone other than to put the account on a list that no one ever knows to look at. After a certain time on that list, the state claims the money as its own. The POD is completely cut out!
PODs are not necessarily informed that they are designated as such. I do not tell mine, and do not want them to know -- for various reasons. For one, I don't want them slacking off in life and character because they think they don't have to because they have money coming their way. I also might want to change who I designate, and don't want bad feelings from those who I take off as POD. Other people might have any number of other reasons. (To be honest, my documents at home, which would be found after my death, would serve to inform of my PODs and my accounts. But not everyone is as organized as I am. Besides, if I were to die in a fire at my house, all my documents might be burned with me -- and the bank would never contact anyone.)