Dodd-Frank provision increases FDIC insurance coverage to $250,000 per depositor
A provision of the recently signed Dodd-Frank Wall Street Reform and Consumer Protection Act by President Barack Obama permanently raises the current standard maximum deposit insurance amount to $250,000. The standard maximum insurance amount of $100,000 had been temporarily raised to $250,000 until Dec. 31, 2013. The Federal Deposit Insurance Corporation (FDIC) insurance coverage limit applies per depositor, per insured depository institution for each account ownership category. The temporary increase from $100,000 to $250,000 was effective from Oct. 3, 2008, through Dec. 31, 2010. On May 20, 2009, the temporary increase was extended through Dec. 31, 2013. "With this permanent increase of deposit insurance coverage to $250,000, depositors with CDs above $100,000, but below $250,000, will no longer have to worry about losing coverage on those CDs maturing beyond 2013," said FDIC Chairman Sheila C. Bair. "We strongly encourage all bank depositors who have questions about their insurance coverage to go to our Web site at www.fdic.gov and use our Electronic Deposit Insurance Estimator (EDIE) or call our toll-free number at 1-877-ASK-FDIC. Insured deposits provide the comfort and peace of mind to depositors that their money is 100 percent safe—provided they keep their deposit balances within the insurance limits." To help consumers, bankers and others understand how the new law affects deposit insurance coverage and to help consumers verify whether their deposit accounts are fully protected, the FDIC provides the following resources: ►Information on deposit insurance on the FDIC Web site: Updated brochures on deposit insurance coverage (including the basic guide, Deposit Insurance Summary, and the more comprehensive guide, Your Insured Deposits) and a new version of the "Electronic Deposit Insurance Estimator" (EDIE), an interactive service that allows consumers to quickly and easily check whether their accounts are fully protected, are now available on the FDIC's Web site. For more information, visit www.fdic.gov.