As part of the Emergency Economic Stabilization Act that President George W. Bush signed into law on October 3, 2008, the Federal Deposit Insurance Corporation (FDIC) has increased deposit insurance coverage effective now through December 2009.
The basic limit on federal deposit insurance coverage went from $100,000 to $250,000 per depositor as part of this provision. In addition, all non-interest bearing transaction accounts are temporarily covered without limit. The FDIC provides a free tool called the Electronic Deposit Insurance Estimator (EDIE) on its website. This easily navigated tool can be used to calculate your levels of coverage. Log on to www.fdic.gov/edie to get started.
For a quick look at your coverage, consult the chart below. Your relationship manager can also discuss your coverage levels with you and answer any questions, as well as help increase your coverage even further.
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
Non-interest Bearing Transaction Accounts – Unlimited coverage “only at participating FDIC-insured banks and savings associations **
* On January 1, 2010, the standard coverage limit will return to $100,000 for all deposit categories except IRAs and Certain Retirement Accounts, which will continue to be insured up to $250,000 per owner.
** Unlimited deposit insurance coverage is available through December 31, 2009, for non-interest bearing transaction accounts at institutions participating in FDIC’s Temporary Liquidity Guarantee Program.