Unlimited FDIC Insurance

Nov 11, 2011 by

When the U.S. scored a near miss on economic calamity in 2008-09, the Federal Deposit Insurance Corporation (FDIC) increased deposit insurance to $250,000. If you’re fortunate enough to have cash insurance needs well beyond $250,000, it’s easy to garner practically unlimited FDIC insurance.

Meltdown II

Given ongoing shenanigans in the Eurozone and the indicated prospects for a second meltdown, you might be concerned about your money going “poof.” Despite the rickety state of U.S. finances and federal political leadership incapable of jointly agreeing that 2 + 2 = 4, FDIC insurance remains, for now, the surest bet on the planet that your cash is secure.

How FDIC Insurance Works

The FDIC insurance limit is $250,000 per depositor, per insured bank, for each account ownership category. You could insure $1.25 million, for example, through four accounts at a single bank:

  1. An account owned by you (Single Account, to use FDIC account ownership category lingo)
  2. An account owned by your spouse (another Single Account)
  3. An account owned by you and your spouse (Joint Account)
  4. An IRA account owned by you (Certain Retirement Account)

The joint account (#3) would be insured up to $500,000, and each of the other three accounts to $250,000. Take note of the FDIC’s requirements for insuring Joint Accounts:

  1. All co-owners must be living people. Legal entities such as corporations, trusts, estates or partnerships are not eligible for joint account coverage.
  2. All co-owners must have equal rights to withdraw deposits from the account.
  3. All co-owners must sign the deposit account signature card unless the account is a CD or is established by an agent, nominee, guardian, custodian, executor or conservator.

Unlimited FDIC Insurance Possible

Need even more insurance? You can repeat the above at any number of FDIC-insured banks (not different branches of the same bank).

To check whether a bank is insured, search the FDIC’s database.

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