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Home > FDIC Coverage
How Expanded FDIC Deposit Insurance
Coverage Affects You
$250,000
In times like these, consumers and businesses alike are looking for options to keep their money safe. Traditional banking products–savings accounts and certificates of deposit– have long been among the safest investments available. That’s because those deposits are insured by the Federal Deposit Insurance Corporation (FDIC).
With the signing of the Dodd-Frank Wall Street Reform and Consumer Protection Act by President Obama, on July 21, 2010, insurance coverage limits for the current standard maximum deposit have increased to $250,000 permanently. This helps make your deposits even safer; so now you can save even more money and know you’ll still be covered. The FDIC coverage limit applies per depositor, per insured depository institution, for each account ownership category.
For non-interest bearing transaction accounts (i.e., checking accounts) there is more good news. We have opted to participate with the FDIC in the Transaction Account Guarantee Program that will provide unlimited deposit insurance coverage of non-interest bearing deposit transaction accounts through December 31, 2010. This applies to all account owners, but is of particular interest to business account owners with large sums deposited in payment-processing accounts.
In addition to the increased coverage, the FDIC has simplified the rules for determining the deposit insurance coverage available on revocable trust accounts–commonly called pay-on-death or living trust accounts. Now you can name anyone as your beneficiary as long as the beneficiary is a natural person, charity, or other non-profit organization. The owner is insured up to $250,000 for the share of each beneficiary.
Remember, deposit insurance coverage is per ownership. This means you can multiply the $250,000 of coverage by using joint accounts and revocable trust accounts. Note that IRA accounts are separately insured to $250,000 per owner and have been for some years. Ask us for more information about taking advantage of these different account ownership strategies.
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