How Do You Calculate FDIC Guaranteed Deposit Limits?
Most people believe all the money they deposit in the bank is protected by the U.S. government, even if the bank collapses. Unfortunately, as some depositors have discovered, this is not always the case. The Federal Deposit Insurance Corporation (FDIC) has a $53-billion reserve backed by the U.S. Treasury, and it guarantees money deposited in U.S. banks only to certain limits. Knowing these limits can mean the difference between having safe deposits and taking the chance of losing some of your hard earned cash. Understand the types of legal ownership of bank accounts. The FDIC treats each type of ownership differently, and the amount guaranteed for some types are different. See the Resource Section for the FDIC’s explanations on all types of accounts. Recognize that individual deposits are limited to $250,000.00 per depositor in each FDIC insured bank through December of 2009. This limit includes all checking, savings and Certificate of Deposit (CD) accounts at any one insured bank. Fo
