[quote=CA renter][quote=Doooh]You’d also need to find a way to keep your $500,000 split up into 5 different accounts to keep it under the $100k FDIC limit.
1 for you
1 for your wife
1 jointly
You’d need to find another bank for the last $200,000[/quote]
Just posting this because I think a lot of people aren’t aware of the changes:
Changes in FDIC Deposit Insurance Coverage
——————————————————————————–
November 9, 2010
On November 9, 2010, the FDIC issued a Final Rule implementing section 343 of the Dodd-Frank Wall Street Reform and Consumer Protection Act that provides for unlimited insurance coverage of noninterest-bearing transaction accounts. Beginning December 31, 2010, through December 31, 2012, all noninterest-bearing transaction accounts are fully insured, regardless of the balance of the account, at all FDIC-insured institutions. The unlimited insurance coverage is available to all depositors, including consumers, businesses, and government entities. This unlimited insurance coverage is separate from, and in addition to, the insurance coverage provided to a depositor’s other deposit accounts held at an FDIC-insured institution.
A noninterest-bearing transaction account is a deposit account where interest is neither accrued nor paid; depositors are permitted to make an unlimited number of transfers and withdrawals; and the bank does not reserve the right to require advance notice of an intended withdrawal.
Please note that Money Market Deposit Accounts (MMDAs) and Negotiable Order of Withdrawal (NOW) accounts are not eligible for this unlimited insurance coverage, regardless of the interest rate, even if no interest is paid on the account.
July 21, 2010
On July 21, 2010, President Barack Obama signed the Dodd-Frank Wall Street Reform and Consumer Protection Act into law, which, in part, permanently raises the current standard maximum deposit insurance amount (SMDIA) to $250,000. The FDIC insurance coverage limit applies per depositor, per insured depository institution for each account ownership category. Consumers and bankers can find additional information regarding FDIC’s deposit insurance coverage through the use of the FDIC’s Electronic Deposit Insurance Estimator (EDIE) and deposit insurance publications located on the FDIC’s website “Are My Deposits Insured?” In addition, they can call the FDIC at 1-877-ASK-FDIC (1-877-275-3342).
Actually, the rules are different for different account types. If
we’re talking about trusts, it’s a completely different ballgame. In fact, it’s possible to be insured more than $250k per account or for that matter $500k which would be limit for a normal joint account…
The rules for FDIC insurance in the case of a trust account is $250k PER BENEFICIARY of the trust.
Furthermore, FDIC insures different account types at the same bank. So for example if you have a trust account and a joint account, they would be both be insured within their respective limits.
Already did research on this, during the day in which it was like going to my favorite soon to be bankrupt bank….
