2008 Year in Review

FDIC

by Angie VanderVinne

Given the state of the economy and all of the news about bank closures and bailouts, people have become concerned about the safety of their money. Since the creation of the FDIC, no depositor has ever lost a single penny of FDIC insured funds. FDIC insurance covers funds in checking, savings, money market deposit accounts, and CD’s. FDIC insurance DOES NOT cover stocks, bonds, mutual fund shares (different than a money market deposit account), life insurance policies, annuities, or municipal securities; even if those products are sold at the same bank you have your checking or savings account.

Although FDIC limits are listed as $250,000 on signs in banks, there’s more to it when you take a closer look. You may qualify for more than $250,000 in coverage at one insured bank or savings association if you own deposit accounts in different ownership categories. The most common account ownership categories for individual and family deposits are single accounts, joint accounts, revocable trust accounts and certain retirement accounts.1 It is common for people to “structure” their accounts to maximize their FDIC insurance at an institution. Also, FDIC insurance is coverage at that particular bank, so you can spread your wealth around and still be covered. For more information visit www.FDIC.gov1 or pick up a FDIC pamphlet from your financial institution.

by  Editor, theCity1.com
November 17, 2008