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  • JAL July 30, 2008, 11:53 pm

    Hi Joe,

    As you probably already know, saying that accounts are insured by the FDIC up to $100K is only partially true. Unfortunately it’s a bit more complicated than that.

    Certain account types are grouped together at an insured bank (checking, savings, CD’s in one group, then IRA’s in another) and each single account owner is then insured up to $100,000 for the checking/savings/CD types accounts, and up to $250,000 for the IRA type accounts.

    Jointly held accounts are split proportionally amongst the account owners to determine coverage limits. For example, a single $200,000 savings account owned by a husband and wife would be fully insured (assuming no other accounts are held at the same bank) because each owner is insured up to $100,000 in that account type.

    It’s also interesting to note that an estate IRA (an IRA held in the name of a deceased person payable to a beneficiary) is insured under the decedent’s name and thus isn’t grouped in with the beneficiary’s bank accounts to determine coverage.

    A visit to the FDIC’s insurance handy electronic coverage calculator will help you figure out exactly where you stand:


    Best regards,

    John L.

  • JOE July 31, 2008, 8:51 am

    Again, thanks for writing. I was trying to keep the post itself on the brief side, and provided a link to the FDIC for more details. (This is what I get for not prepping my August main article before month’s end. A couple sub-par blog posts.)

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