Maximize FDIC Protection For Your Bank Account

Thursday, December 18, 2008, 6:00 AM | Leave Comment

As we all know, in this lousy market, we have to protect our bank accounts. This year, 2008, is the 75th anniversary of the Federal Deposit Insurance Corporation, better know as FDIC. Recent changes in FDIC insurance limits temporarily raised protection, unless Congress makes it permanent, from the familiar $100,000 level to $250,000 per qualified account category. This means that if your bank fails, no matter how much money you have in your account, you are protected for up to $250,000. You get paid $250,000 even if you had more than that in that account.

There are ways to increase that limit. Here is how. The example given is for married couple.

  • You and your spouse can each have separate individual accounts. For the two accounts, you would be protected for up to $500,000 (2*250K).
  • Your retirement accounts, obviously, are individual accounts. Again you both together are insured for up to $500,000 (2*250K).
  • You can have a joint account which would be protected for up to $500,000 (2*$250K).

As you can see, your accounts would be fully insured for up to $1.5 million (3*$500K). Now these accounts are per bank.

If you have more than $1.5 million, you repeat the same process in other banks.

So structuring your accounts properly is the key to maximizing deposit insurance protection.

If you have any questions regarding FDIC protection, call the FDIC consumer hotline at
1-877-ASK-FDIC (1-877-275-3342) toll free, or visit My FDIC Insurance.

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