FDIC Temporary Changes To Insured Accounts Limits

As you may know, with the current economic crisis the FDIC has made some temporary changes that affect us all. In the past, the FDIC insured accounts up to $100,000 per/single person. On October 14, 2008 the FDIC temporary changed that insured amount (per/single person) to $250,000. This new temporary change to the FDIC insured amount will be in effect until December 31, 2013 for non-interest and low-interest bearing account.

• Non-Interest bearing accounts are accounts that do not earn interest income.
• Low Interest bearing accounts are accounts earning under .5% interest income.

For accounts earning interest over .5% like: CDs, Money Market Accounts, and Other savings accounts the FDIC insured amount is $250,000 until December 31, 2009.

It is expected and reported on the FDIC website that the temporary changes will be reversed on January 1, 2014. Meaning the FDIC insured amount will go back to $100,000 (per/single person) or extended or changed again.

What is the FDIC?

First, the name FDIC stands for Federal Deposit Insurance Corporation. This non-government agency was designed to protect bank account holders from losing their deposits in bank that are FDIC Insured. If you are not sure if your bank is FDIC insured you can check the official FDIC list of FDIC Insured Banks. The FDIC does not insured money placed on stocks, mutual funds, life insurance policies, annuities, municipal securities and other such investments.

The FDIC insurance for each depositor is currently at $250,000 per insured bank. Meaning if you have $250,000 at bank A and $250,000 at bank B all of your deposits are insured by the FDIC. However, if you have $300,000 at bank A and $250,000 at bank B then $100,000 in bank A is not insured by the FDIC. Remember that deposits includes all your accounts added together — like: CDs, Money Market Accounts, Checking Accounts and Saving Accounts. Another exception to the FDIC insured amount is Joint accounts and different ownership accounts. Let’s say you own a business, you could have $250,000 in the business name and $250,000 in your personal name at the same bank.

The FDIC has been publishing a list of failed banks. These are banks that the FDIC has had to insure bank account holders deposits. To see the list go to Is Your Bank On The FDIC Failed Bank List

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Other Resources

• Financial Upturn For 2010
• FDIC Administrative Orders
• Escrow Information – Agreements, Solutions, Fees and More
• Personal Finance and Money Going Into 2010