If you have any doubts whether your bank is part of the FDIC program you should take the time to go in and ask. There should be a sign on the wall somewhere of something on the teller counters saying that they are FDIC insured. If still in doubt, please ask one of the people sitting at the desks and they should be able to give you a printout with all the rules and regulations.

Another thing you might want to ask about is exactly what the $250,000 limit applies to if you are married or if you have more than one account. This is a point of some confusion even among professionals. I have personally gone into two different banks and gotten two different answers. The rules seem to state that the insurance is “per person” and not per account but put on the spot, even the people in the two banks weren’t 100% sure.

The more questions you ask about the FDIC insurance extension, the more you will be able to understand and you will go away feeling better about it. Remember, it is YOUR money you are investing so don’t be hesitant to ask questions.

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.

Since the banking and mortgage crisis began, this $100,000 FDIC insurance limit has been raised to $250,000 as it should have been done years ago. This new FDIC higher limit is now guaranteed through 2013 and you can read about it here – FDIC extends $250,000 through 2013. This means that any individual is insured up to $250,000 per institution. If you have one million dollars you wanted to safely put away, you would then have to have accounts at four different banks. This all assumes, of course, the United States government is going to have the money to pay you. The way things are going now, that $250,000 might be worth a loaf of bread when it comes time to collect.

One note about the FDIC insurance. You don’t have to pay anything or sign anything to get it. It is automatically there by law and any account holder will have it by default.