FDIC Coverage Permanently Raised to $250,000 per Depositor
Deposits at FDIC-insured institutions are now insured up to at least $250,000 per depositor for all account categories, including IRAs and certain other retirement accounts.
What does this mean for our clients?
Here’s an example of how you can maximize your FDIC insurance coverage:
Example: Bill has a $250,000 POD account with his wife Sue as beneficiary. Sue has a $250,000 POD account with Bill as beneficiary. In addition, Bill and Sue jointly have a $1,500,000 POD account with their three children as equal beneficiaries.
These three accounts totaling $2 million are fully insured because each owner is entitled to $250,000 of coverage for the interests of each beneficiary in the accounts. Bill has $1 million of insurance coverage because he names four beneficiaries – his wife in the first account and his three children in the third account. Sue also has $1 million of insurance coverage because she names four beneficiaries – her husband in the second account and her three children in the third account.
Visit the FDIC website to calculate your deposit insurance coverage