Greater FDIC Coverage Extended Through 2013 - but Watch Out for 5 Gotchas
Last year, during the 2008 financial crisis, the FDIC insurance coverage limits were hastily raised from $100,000 to $250,000 per depositor.
At the time, those higher FDIC limits were intended to be temporary, just through December 31, 2009. The good news for consumers and small business owners alike is, the $250,000 FDIC insurance coverage has been extended through December 31, 2013.
In other words, you do not need to worry about that coverage going away at the end of this year. Coverage was also extended to $250,000 through December 2013 for federally-insured credit union deposits through the National Credit Union Administration (NCUA).
The increased limit is large enough that with just a little advance planning, there’s no reason whatsoever for middle-class Americans to lose a dime from putting money into FDIC-insured banks or NCUA-insured credit unions.
In fact, by intelligently combining accounts having different types of ownership, you and your family and your business combined can effectively get a lot more than $250,000 in insurance coverage.
But — there are some gotchas that consumers and small business owners should watch out for — because under certain circumstances, you may have LESS coverage than you think you have. Before I get into those gotchas, let’s take a look at how FDIC insurance works and the critical role it plays.
FDIC Insurance in Practice
From the typical consumer or small business owner perspective, FDIC insurance is pretty simple. As long as your deposits are under the FDIC insurance limits, there’s zilch chance of losing any money you have in the bank. The Federal government, which stands behind the Federal Deposit Insurance Corporation (FDIC), will repay your money in the event your bank fails.









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