New FDIC Deposit Insurance Coverage

Over the past couple of weeks the financial crisis on Wall Street, which has had a ripple effect on other market around the globe, has now been tamed by the collective will of the American government with a temporary adjustment in the FDIC to protect depositors; thus bringing back some confidence in the sector.

Although it will be some time yet before we begin to see and feel the full effect of these measures, it’s a positive move to build confidence in a fragile and fluid market.

Some argue that the government should not get involved, but we must consider that a lot of Retirees have their life’s savings tied up in these failed banks without any other recourse.

This attempt to bring back normalcy will help those who have no alternative but to put their money in the bank. It will also help small businesses that need credit to stay afloat and not go under during these turbulent times.

New Deposit Insurance Limits
It’s now official, on October 3, 2008, President George W. Bush signed the Emergency Economic Stabilization Act of 2008, which temporarily increased FDIC deposit insurance from $100,000 to $250,000 per depositor 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**
Corporation, Partnership and Unincorporated Association Accounts	$250,000 per corporation, partnership or unincorporated association
Employee Benefit Plan Accounts	$250,000 for the non-contingent, ascertainable interest of each participant
Government Accounts	$250,000 per official custodian

^* These deposit insurance coverage limits refer to the total of all deposits that an accountholder (or accountholders) has at each FDIC-insured bank. The listing above shows only the most common ownership categories that apply to individual and family deposits, and assumes that all FDIC requirements are met.

^** The legislation authorizing the increase in deposit insurance coverage limits makes the change effective October 3, 2008, through December 31, 2009.

If you have questions about FDIC coverage limits and requirements, please visit http://www.fdic.gov, call toll-free 1-877-ASK-FDIC, or ask a representative at your bank.