How are the FDIC rules changing?
On Friday, October 3, 2008, President Bush signed the $700 billion bailout package (or “rescue plan,” depending on your point of view) into law. Among its many provisions: significant but temporary increases in FDIC coverage for certain bank accounts at FDIC member banks. The insurance limits on individual accounts, on joint accounts, and on trust accounts have increased to $250,000, but only through December 31, 2009. The insurance limit on Individual Retirement Accounts (IRAs) remains unchanged, at $250,000. (Please see the Legal Q&A, or visit http://www.fdic.gov for more details on what restrictions apply). There are a few important things to remember: * FDIC insurance only applies if your bank FAILS and federal regulators take control of it. If your bank is failing and it merges with another bank, then you will continue to have FDIC insurance coverage through your former bank for a period of six months following the merger. You should use that time to evaluate whether all of your f
