October 08, 2008
Bank customers with more than $100,000 in a single bank don't need to rush to spread it around just yet, as a federal law raised the basic limit on federal deposit insurance coverage to $250,000.
President George W. Bush signed signed the Emergency Economic Stabilization Act of 2008 on Oct. 3, which temporarily raises the FDIC coverage until Dec. 31, 2009. The coverage will drop back to $100,000 in 2010.
"This temporary increase in deposit insurance coverage should go far to help consumers maintain confidence in the banking system and the marketplace," said FDIC Chairman Sheila C. Bair. "And clearly the public's confidence is key to a healthy and stable economy."
By letter dated Oct. 3, the FDIC advised insured institutions they should inform depositors that the coverage increase is temporary and effective only until Dec. 31, 2009. The legislation did not increase coverage for retirement accounts; it continues to be $250,000.
The FDIC has authorized insured institutions to use this statement to augment bank signage and customer information materials:
On October 3, 2008, FDIC deposit insurance temporarily increased from $100,000 to $250,000 per depositor through Dec. 31, 2009.
For an overview of deposit insurance coverage reflecting the temporary increase, go to www.fdic.gov/news/news/financial/2008/fil08102a.html.
Bankers and depositors also should visit www.myFDICinsurance.gov and use EDIE the Estimator to learn more about FDIC insurance coverage. Deposit insurance information is available on the FDIC's Web site at www.fdic.gov/deposit/deposits.
- www.northfulton.com
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