The Federal Deposit Insurance Corporation recently raised insurance limits on all deposit accounts to help calm the credit and financial markets. The new limits are only temporary but the limits have been raised from $100,000 to $250,000 for individual accounts. Deposit accounts include checking accounts, savings accounts, money market deposit accounts and certificates of deposit (CDs).
You can open multiple accounts to raise your overall limit. We have two examples on raising the insured limit on deposit accounts.
Maximizing Your FDIC Insurance Coverage
A husband and wife can have deposit accounts totaling $1,500,000 insured by the FDIC, with the following account ownership strategy.
Example 1: Husband and Wife
| Individual Accounts |
| Husband |
$250,000
|
| Wife |
$250,000
|
| Joint Accounts |
| Husband and Wife |
$500,000
|
| Revocable Trust Accounts |
| Husband in trust for Wife |
$250,000
|
| Wife in trust for Husband |
$250,000
|
| Total FDIC Insured Amount |
$1,500,000
|
A husband and wife with a child can have deposit accounts totaling $2,000,000 insured by the FDIC, with the following account ownership strategy.
Example 2: Husband and Wife with Child
| Individual Accounts |
| Husband |
$250,000
|
| Wife |
$250,000
|
| Joint Accounts |
| Husband and Wife |
$500,000
|
| Revocable Trust Accounts |
| Husband in trust for Wife |
$250,000
|
| Husband in Trust for Child |
$250,000
|
| Wife in trust for Husband |
$250,000
|
| Wife in Trust for Child |
$250,000
|
| Total FDIC Insured Amount |
$2,000,000
|
In additon to using the multiple deposit account stragey you can also use the Certificate of Deposit Account Registry Service to insure your deposits up to $50 million. We recently wrote on artilce on the service, read more CDARS
Author: Brian McKay
November 8th, 2008
