Just reposting this info regarding FDIC-insured accounts. A lot of people don’t know about the temporary unlimited coverage for noninterest-bearing accounts. I once had to send a link to someone at a major bank, when they insisted to me that no such insurance existed. For some reason, it was kept very quiet when they passed this change.
From the FDIC’s website:
Temporary Unlimited Coverage for Noninterest-bearing Transaction Accounts
From December 31, 2010 through December 31, 2012, all noninterest-bearing transaction accounts are fully insured, regardless of the balance of the account and the ownership capacity of the funds. This coverage is available to all depositors, including consumers, businesses, and government entities. The unlimited coverage is separate from, and in addition to, the insurance coverage provided for a depositor’s other accounts held at an FDIC-insured bank.
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.
Note: Money Market Deposit Accounts (MMDAs) and Negotiable Order of Withdrawal (NOW) accounts are not eligible for this temporary unlimited insurance coverage, regardless of the interest rate, even if no interest is paid.
