Well, I just discovered something about FDIC insured bank accounts that literally scared me! For years I have heard and read that bank deposits are FDIC insured up to $100,000.
Many people thought (including myself) that if they had multiple accounts at the same bank, such as the following:
- $100,000 in a Checking account
- $100,000 in a Savings account
- $100,000 in a Certificate of Deposit (CD)
WRONG! | WRONG! | WRONG! |
You are only protected up to $100,000 per bank per person!
What could you do? Well, you could move the money in excess of $100,000 to another bank since the limit is per bank.
Another option would be to add another person to the account, if you have someone you could trust.
What could you do? Well, you could move the money in excess of $100,000 to another bank since the limit is per bank.
Another option would be to add another person to the account, if you have someone you could trust.
A better solution is to find a bank that uses the Certificate of Deposit Account Registry Service. Members of the registry distribute large accounts across multiple institutions in a way that is seamless to you, but spreads out the insurance risks.
You could have up to $30 million on deposit, with a single statement and interest rate, but be spread wide enough to be fully covered by the FDIC; in a fashion that is legal and approved by the FDIC.
Remember, it is not the policy of the Federal Reserve or the Federal Government to warn you ahead of time that a bank is about to fail. So please take measures to protect yourself.
You could have up to $30 million on deposit, with a single statement and interest rate, but be spread wide enough to be fully covered by the FDIC; in a fashion that is legal and approved by the FDIC.
Remember, it is not the policy of the Federal Reserve or the Federal Government to warn you ahead of time that a bank is about to fail. So please take measures to protect yourself.
1 comment:
Good article! This is a point that not many people know about.
Also, I've heard that the FDIC has up to 10 years to reimburse you.
Any one else know more about this?
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