Calculating Your FDIC Insurance Coverage

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September of 2008 has brought about huge fluctuation in the U.S. stock market, bankruptcies, and buyouts. Rumors continue to surface that bring into question the safety of even regular accounts such as checking, savings, certificates of deposit, etc. If your accounts are in a bank that participates is the Federal Deposit Insurance Corporation or FDIC, then you need to realize that there are some limitations on that coverage. However, if you are careful in the way you title your accounts, you can be sure you get the maximum coverage possible.

An individual can be insured separately, then a couple can have additional coverage on an account they own together, as well as accounts that may have a son or daughter listed as the beneficiary, or payable on death. IRA accounts have a larger threshold.

Suze Orman has partnered with the FDIC to help people figure out if they have sufficient coverage for their bank accounts. Gather your bank statements and click on http://www.myfdicinsurance.gov/ . Here you will find an insurance/account calculator that will give you a breakdown on your coverage. This may give you some peace of mind as to the safety of your regular accounts. If you find that your coverage is insufficient, speak with your banker to see if you can rework your accounts.

Suze Orman and FDIC Chairman Sheila Bair are featured in a series of Public Service Announcements to educate Americans about the FDIC coverage. Suze Orman assures all of America that “For seventy-five years the FDIC has protected the money YOU deposit in banks. Those depositors have never lost ONE PENNY in the history of the FDIC.” Both women urge viewers to visit the website mentioned above and utilize the online coverage estimator “EDIE” (Electronic Deposit Insurance Estimator) to make sure they are covered. This online calculator is easy to use and simple to understand. Of course, the website includes a disclaimer that “the results and conclusions generated by EDIE are strictly advisory.” It is always best to speak with a knowledgeable banker to be sure your accounts are in order.

The FDIC, an independent government agency, was created in 1933. According to its website, “FDIC insurance is backed by the full faith and credit of the United States government.” If you are unsure whether or not your bank is insured by the FDIC you may call 1-877-ASK-FDIC.

To view the Public Service Announcements mentioned above, go online at http://www.myfdicinsurance.gov/psa.html .