Other types of financial services offered at the Debt Consolidation Loan Directory:
- Debt and Bill Consolidation (home page) - Shop for a wide range of personal financial services, such as: mortgage loans for refinance and purchase, homeowner's insurance, bill consolidation and car loans.
- Credit Card Debt Management - Need help getting control of your credit card debts? Compare a list of different debt management companies and get help with getting your monthly payments under control.
- Personal Loan Online - Shopping for a small loan online? Personal loans are usually smaller, have shorter terms and are most often unsecured (not requiring collateral).
- Credit Debt Consolidation Programs - When consolidating your debt, review all of your available options before making a decision. Review and compare a wide range of debt and bill consolidation related programs and services online.
A Special Guide for Seniors and Families
Naming Names: Points to Consider Before Giving Friends or Relatives Access to Bank Accounts and Safe Deposit Boxes
FDIC insurance coverage for most accounts is based on who owns the money, not who can withdraw the money. "When the FDIC receives an inquiry about deposit insurance coverage, usually our first question is, 'Who owns the funds?'" said Martin Becker, an FDIC senior specialist for deposit insurance claims. "Only the legal owner of the funds is entitled to insurance coverage."
Example: If two people have a joint account at the same bank and no other joint accounts there, the account is FDIC-insured up to $200,000 ($100,000 for each owner). If, instead, the $200,000 account lists one owner and another person authorized to withdraw funds as a convenience for the owner, the account is FDIC-insured to $100,000, not $200,000.
You can get additional FDIC insurance protection on certain accounts that name beneficiaries who will receive your money if you die. One such account is a payable-on-death account (also called an in-trust-for account) that can be set up by simply naming the beneficiaries in the bank's records. Another is a deposit account tied to a formal "living trust," a document that should be drawn up by an attorney.
To obtain the extra insurance coverage, specific requirements must be satisfied. If every beneficiary you name is a parent, spouse, sibling, child or grandchild, the FDIC will insure the account for up to $100,000 per beneficiary, not $100,000 in total. That means your account can be insured up to $200,000 if there are two beneficiaries from the list above, $300,000 if there are three, and so on. But other beneficiaries — including a nephew, niece, cousin, grandparent, in-law, ex-spouse, friend or charity — do not qualify the account for this extra insurance coverage. The portion of the account payable to them would be added to any accounts you have at the bank in the single (individual) account category and the total will be insured to a maximum of $100,000.
Calculating deposit insurance coverage for trusts can be complicated. For guidance, call the FDIC.
You cannot increase the insurance coverage of Individual Retirement Accounts by adding beneficiaries. Regardless of the number of beneficiaries you name to receive your IRA deposits if you die, your retirement accounts at one institution are insured up to $100,000 in total, and no more.
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Fall 2005 | Naming Names | Add a Co-Owner | Insurance Coverage | Safe Deposit Box Access |
FDIC Consumer News is published by the Federal Deposit Insurance Corporation
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Last updated on 3/23/2006