Late last month, President Obama signed a bill that postpones the expiration date of the increased FDIC insurance limits on most bank deposit accounts. Under the new law, the standard FDIC insurance limit of $250,000 dollars per depositor will continue until December 31, 2013. Prior to the signing of this law, the increase last year from $100,000 dollars per depositor to $250,000 dollars per depositor was set to expire at the end of this year. This new law also applies to accounts at federally insured credit unions under the National Credit Union Share Insurance Fund.
Keep in mind that this new law does not change or extend the coverage applicable to IRAs and other certain retirement accounts. Those accounts will continue to be covered beyond December 31, 2013 for up to $250,000 dollars per owner as they have been before any of the limits changed last year.
Also, non-interest bearing accounts such as traditional checking accounts, currently have unlimited FDIC insurance coverage based on the legislative changes made last year in response to the financial crisis. This unlimited coverage is still set to expire at the end of this year. The bill discussed above does not change or extend the unlimited coverage for those accounts.
For more on FIDC insurance visit the FDIC’s web site at http://www.fdic.gov/deposit/deposits/DIfactsheet.html
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