FDIC Insurance has been on a lot of people’s minds given the recent conservatorship of IndyMac. Many people that had more than the FDIC insurance limit, which is essentially $100,000 per person per institution, lost their money but if you structure your accounts correctly, one person could easily have many times more coverage. At worst, you could open multiple accounts at different institutions and get coverage that way, there’s almost no reason to have more than the $100,000 limit.
Today’s Seniors has a great explanation and example scenarios of how you can extend the insurance. If you are married with children, there are several ways you can extend your insurance limits. First, each person in the marriage can open an individual account that gives them $100,000 of cover. Then, they can open a joint account that has $200,000 of total coverage. If you’re keeping score, that’s three accounts with $400,000 of coverage ($100k, $100k, $200k). Then, each can open a testamentary (revocable trust) account naming each other as beneficiaries for another $100k each – total of $600k. That’s over half a million dollars in coverage.
Always consult a financial professional before making any decisions, I’m not a financial professional.
Tags: FDIC, Insurance
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