FDIC $250,000.00 INSURANCE ENDS IN 2009
Update: The FDIC $250,000 guarantee been extended to the end of 2013 and you can read about it here.
It is important to note that the FDIC insurance coverage of individual accounts was raised from $100,000 to $250,000 in October 2008. However, that will expire on December 31st, 2009 which is just months away now.
By raising the amount that is insured through FDIC, it allow people to keep more of their money in one institution. At the old amount of $100,000.00, someone with a million invested in money market accounts or bank CD’s would have to have the money in TEN different banks. Obviously, this is extremely inconvenient.
Anyone looking to find the best money maket interest rates could only invest $100,000 safely at the old amount. Now with it raised to $250,000 you can get more of your money invested at the best rate you can find.
Additionally, by raising the amount insured, it meant less turmoil in the banks and institutions that give out CD’s and hold money. Now with the insurance amount going back down to $100,000 in 2010, it means that you must make plans to move your money and make sure it is all insured.
Of course Congress could vote to extend the $250,000 and that would be ideal. It is silly to have the amount at $100,000 especially as that amount isn’t really that much now days due to inflation. Investing your money safely is a priority now with the economic turmoil and it is important to make sure all your money is covered by FDIC insurance.
