FDIC Insurance Limit Increase

[g koz]

Just a reminder regarding the FDIC standard insurance limit increase from $100,000 to $250,000. This temporary increase in the insurance limit is good through December 31, 2009. After Dec. 31, 2009, accounts exceeding $100,000 will not be insured for the excess over $100,000 unless this temporary increase is extended. For example, you start a 3 year certificate of deposit at 5% APY. Initial amount $150,000. You are fully insured through Dec. 31, 2009. But unless there is an extension of this increased limit of $250,000 beyond Dec. 31, 2009, you will not be fully insured as of Jan. 1, 2010. So be careful if a situation like this may apply to you. Many advertisements for CD rates may not mention this, and it's possible bank personnel may not mention it either, unless you ask.

[chaz]

Caveat emptor.

[bostoner]

What does this mean by temporary? When does this 250k guarantee expire?

[paulob]

What does this mean by temporary? When does this 250k guarantee expire?

He gave the date in the OP, Dec. 31st, 2009.

[shelanman]

There is no guarantee, but I fully expect that this will be made permanent.

Because, on December 30th, 2009, if it's about to expire, there will be a massive run on every single bank as people pull money out to get down to the insured level.

Unless the 'scare' is over and there is no more risk of bank failure -- in which case, frankly, the insurance won't matter overmuch.

[dm200]

very possible that some other number, larger than the former and permanent $100,000 could be made the permanent number.

There is no guarantee, but I fully expect that this will be made permanent.

So, I think it is very likely that either the $250,000 will be made permanent, or something close to that number for the reasons stated - potential massive withdrawals before December 31, 2009.

[gassert]

This is 100% a non-issue.

There will b eno bank runs, not like there havbe been ay anyway. And you're looking at the retro active.

Non-issue.

And who knows the next legislative package.

And there are 100-1 ways to "insure" more thatn 100k anywa