- Bargaineering - http://www.bargaineering.com/articles -

FDIC Insurance Covers $100K Per Legal Entity Per Bank

Posted By Jim On 08/23/2007 @ 2:59 pm In Banking | 8 Comments

The FDIC insurance limit now covers $250,000 per depositor. (subject to ownership structures)

I received the following question after the reader saw my post about FDIC and NCUA deposit insurance [3]:

Jim, I have an FDIC insurance question for you. Bank of America has a 4mo 5.10% high yield cd that I’d like to put my funds in. I have more than 100k, if I split it up between myself, my wife, and then we open one together, will I be covered by the fdic insurance? Thanks,

It sounds like there will be three ownership types on the CDs, you, your wife, and a joint ownership scenario and in that case I believe your CD’s will each be individually covered under FDIC insurance up to $100k.

If you instead purchase three different CDs as an individual and for some reason it were to become insolvent, a maximum of $100k would be insurance regardless of how many accounts you have. It’s the legal ownership that matters and each type gets up to $100k.

Now, take that advice for what it’s worth because I’m not a banker and my opinion is based on what I read off the FDIC website, which I may have inaccurately interpreted.

Article printed from Bargaineering: http://www.bargaineering.com/articles

URL to article: http://www.bargaineering.com/articles/fdic-insurance-covers-100k-per-legal-entity-per-bank.html

URLs in this post:

[1] Tweet: http://twitter.com/share

[2] Email: mailto:?subject=http://www.bargaineering.com/articles/fdic-insurance-covers-100k-per-legal-entity-per-bank.html

[3] FDIC and NCUA deposit insurance: http://www.bargaineering.com/articles/fdic-and-ncua-deposit-insurance.html

Thank you for reading!