FDIC Deposit Insurance Coverage Limits of $250k Extended

[This post is written and copyrighted by FIRE Finance (http://firefinance.blogspot.com).]

May 26, 2009: FDIC has extended its insurance coverage limits of for $250,000 per depositor for funds in deposit accounts, including checking and savings accounts, money market deposit accounts and certificates of deposit (CDs). The legislation authorizing the extension of increased insurance coverage limits is valid through December 31, 2013. This supersedes the October 3, 2008 changes.

There is no need for depositors to apply for FDIC insurance or even to request it. Coverage is automatic. We quote the details of basic coverage from FDIC's website:
Deposits at FDIC-insured institutions are now insured up to at least $250,000 per depositor through December 31, 2013. On January 1, 2014, the standard insurance amount will return to $100,000 per depositor for all account categories except for IRAs and other certain retirement accounts which will remain at $250,000 per depositor. (This supersedes the October 3, 2008 changes.)
The extension announced on May 20, 2009, does not apply to the Transaction Account Guarantee Program. The unlimited coverage under the Transaction Account Guarantee Program is only in effect for depositors at participating institutions through December 31, 2009.

Basic FDIC Deposit Insurance Coverage Limits
  • Single Accounts (owned by one person) $250,000 per owner
  • Joint Accounts (two or more persons) $250,000 per co-owner
  • IRAs and certain other retirement accounts $250,000 per owner
  • Trust Accounts $250,000 per owner per beneficiary subject to specific limitations and requirements
It is to be noted that FDIC insurance does not cover other financial products and services that insured banks may offer, such as stocks, bonds, mutual fund shares, life insurance policies, annuities or municipal securities.

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