Reviewing Your Coverage Periodically

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FDIC Consumer News – Winter 2006/2007 – FDIC Insurance


Related Financial Services - The following Debt Consolidation Loan Directory listings of companies are offered to assist you with gaining control of your personal finances and the management of your money. Also, feel free to review the rest of the sub-directories on DebtConsolidationLoan.com to shop for other finance products, such as credit cards and mortgage refinancing.

  • Personal Debt Consolidation Loan - Looking for a personal loan to consolidate your credit cards? These loans are usually unsecured, meaning you are not required to provide collateral. Approval is often based upon factors as your income, credit and job history.
  • Debt Consolidation Settlement - Too much debt? List of companies providing this alternative to bankruptcy that provides for debt negotiation and arbitration services for those that need to eliminate debt.
  • Debt Management Counseling - Too many credit cards and other bills to make monthly payments on? Start here by reviewing and comparing different debt management options for getting help with your credit card bills and other monthly obligations.

Protect All Your Deposits with FDIC Insurance

If you or your family have more than $100,000 at one institution, it makes sense to periodically review your coverage and, if necessary, make adjustments


Fortunately, bank failures have been rare in recent years, largely because of a strong U.S. economy and high standards that FDIC-insured institutions must meet for financial strength and stability. In the unlikely event that a bank were to fail, the FDIC would promptly pay every penny of a customer's insured deposits, including principal and interest, up to the insurance limit.


But while the overwhelming majority of depositors at failed institutions had all their funds within the federal limit, there have been customers who did not realize that some of their accounts were over the limit and uninsured. Those customers lost some or all of that excess amount (depending on how much money the FDIC recovered selling the failed institution's assets). Here's what you can do to fully protect yourself from loss by taking full advantage of FDIC insurance.


One


Remember that the basic insurance limit is $100,000 per depositor per insured bank, but you may qualify for more coverage than that. If you or your family have $100,000 or less in all of your deposit accounts at the same insured bank, you don't need to worry about your insurance coverage because your funds are fully insured. However, it is possible to have more than $100,000 at one bank and still be fully insured. Here's how:

  • Joint accounts (those owned by two or more people who have equal withdrawal rights) are insured up to $100,000 per co-owner. For example, one or more joint accounts owned by a husband and wife at the same bank would be insured up to a combined limit of $200,000 – $100,000 for each spouse.
  • If you have deposit accounts in different "ownership categories," these funds are separately insured. That means your deposits in single accounts (in your name only), joint accounts, and revocable trust accounts (which will pass to one or more named beneficiaries when the account owner dies) are each separately insured.

    For example, if you have one or more single accounts in your name alone (insured up to $100,000), your spouse has one or more single accounts in his or her name alone (insured to $100,000), and you and your spouse together have one or more joint accounts at the same bank (insured to $200,000), the total FDIC coverage at that bank for you and your spouse is $400,000.
  • Revocable trust accounts are insured up to $100,000 per owner for each "qualifying" beneficiary named in the account, separately from any money you may have in single and joint accounts. A qualifying beneficiary is a spouse, child, grandchild, parent or sibling. (Others who might be named in the account, including in-laws, cousins, nieces, nephews, friends, charities and trusts, are not considered qualifying beneficiaries for deposit insurance purposes.) So, if you have a revocable trust naming two qualifying beneficiaries – let's say your spouse and a child – it would be insured up to $200,000.
  • Federal law also provides up to $250,000 in deposit insurance coverage for certain retirement accounts, such as Individual Retirement Accounts (IRAs). Check with the FDIC to learn more about what types of retirement deposits qualify for up to $250,000 in coverage. Here again, deposits in this insurance category are separately insured from your other accounts at the same bank.

"People are usually amazed when they call us for information about their insurance coverage and learn just how much deposit insurance coverage they can get at one insured bank or savings association," said Kathleen Nagle, Chief of FDIC's Deposit Insurance Section. "There are lots of ways to qualify for additional insurance coverage, but it's important to understand there are requirements that apply to receive that extra coverage. That's why we always encourage folks to check out our Web site or talk to one of our deposit insurance experts."


Winter 2006-2007 | Your Coverage Qualifications | Review Your Insurance Coverage |
Make Adjustments to Your Accounts | Know Your Deposit Insurance Coverage | Call the FDIC to Answer Your Questions


FDIC Consumer News is published by the Federal Deposit Insurance Corporation


FDIC Consumer News is produced quarterly by the FDIC Office of Public Affairs in cooperation with other Divisions and Offices. It is intended to present information in a nontechnical way and is not intended to be a legal interpretation of FDIC or other government regulations and policies. Mention of a product, service or company does not constitute an endorsement.


Find current and past issues of FDIC Consumer News at http://www.fdic.gov/consumernews. Refer to this same index to locate the issues that are specially formatted for being reprinted in any quantity.


To receive an e-mail notice about each new issue of FDIC Consumer News posted on the FDIC Web site, with links to stories, follow instructions posted at www.fdic.gov/about/subscriptions/index.html.


Last updated on 2/1/2007

Consumer resources and related info:


Make the correct decisions when shopping for banking, debt consolidation and related financial services. Educate yourself!

The Debt Consolidation Loan Directory has a growing library of free informative / educational financial resources for consumers shopping for many types of services related to the management of your money, such as consolidating credit card debts, fraud alerts and car insurance. There is no better way to make decisions regarding the management of your personal finances than to read and understand how they work. Please feel free to visit our consumer resource library for more information.

  • Cell Phone Banking - New cell phones are constantly evolving and becoming more sophisticated. This includes adding the capability of handling online banking through your phone. This FDIC article discusses some of the possibilities and precautions you should take when using your phone for banking purposes.
  • How to Protect Yourself with FDIC Insurance - Read up on what qualifications are necessary and how to determine if your deposits are covered by FDIC insurance.
  • Direct Deposit Safer than Checks? - The US Treasury Department reports that a majority of surveyed consumers mistakenly believe that paper checks are safer than direct deposit.
  • Consider the Fees! - Learn what to look for and examine the details of each banking account offer for possible fees, such as: inactivity, minimum balance and ATM withdrawal fees.

Please Note

DebtConsolidationLoan.com is a service of Infinamic, Inc. All debt consolidation loans and financial services information is deemed reliable, but not guaranteed. Infinamic, Inc. is not responsible for the content and services, that may be provided to you, by following the links from this web site. Use this service at your own discretion.