New FDIC Levels | Fee-Only Financial Planners Long Island

New FDIC Levels

On May 20, 2009, President Obama signed the Helping Families Save Their Homes Act, which extended the temporary increase in the standard maximum deposit insurance amount to $250,000 per depositor through Dec. 31, 2013. On Jan. 1, 2014, the standard insurance amount will return to $100,000 per depositor for all account categories.  The $250,000 limit is permanent for certain retirement accounts, such as IRAs.

Federal Deposit Insurance Corporation (FDIC) insurance covers all types of deposits received at an insured bank, including money held in checking, NOW, savings accounts, money market deposit accounts and time deposits such as certificates of deposit (CDs). Take note: The FDIC does not insure money invested in stocks, mutual funds, life insurance policies, annuities or municipal securities, even if these investments were bought from an insured bank.  The FDIC also does not insure U.S. Treasury bills, bonds or notes, although they are backed by the full faith and credit of the United States government.

FDIC insurance covers the balance of each depositor’s account, dollar for dollar, up to the insurance limit, including principal and any accrued interest through the date of the insured bank’s closing.

Listed below are the account types and coverage limits:

Single Accounts (owned by one person) $250,000 per owner
Joint Accounts (two or more persons) $250,000 per co-owner
Certain Retirement Accounts (includes IRA’s) $250,000 per owner-permanent
Revocable Trust Accounts $250,000 per owner beneficiary up to five beneficiaries.  More coverage is available with six or more beneficiaries, subject to specific limitations.
Irrevocable Trust Accounts $250,000 for the non-contingent, ascertainable interests of each beneficiary.
Employee Benefit Accounts $250,000 for the non-contingent, ascertainable interests of each beneficiary.

You can calculate your insurance coverage by using the FDIC’s estimator at, or call 1-877-ASK-FDIC.

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