Dear Dr. Don,
I remember not too long ago when FDIC insurance went from $100,000 per depositor to $250,000. It is set to change back to $100,000 in 2014, correct? Why wouldn't it stay at $250,000?
-- Bill Bounds
The increase to $250,000 was made permanent back in July when President Barack Obama signed into law the Dodd-Frank Wall Street Reform and Consumer Protection Act. The Federal Deposit Insurance Corp., or FDIC, insurance coverage limit applies per depositor, per insured depository institution for each account ownership category.
You're right in thinking that the standard maximum insurance amount of $100,000 had only been temporarily raised to $250,000 until Dec. 31, 2013. The permanent increase took a measure of uncertainty out of the market, especially for depositors with longer-term CDs valued at between $100,000 and $250,000.
The FDIC's Electronic Deposit Insurance Estimator, or EDIE, allows consumers to confirm that their deposits are FDIC-insured. The insurance limit for credit union shares was also increased to $250,000, and the National Credit Union Share Insurance Fund, or NCUSIF, has its own Electronic Share Insurance Calculator -- though not as cleverly named as EDIE.
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