Fashionistas you have arrived 3-25-03 - 10-3-03

[robustpuppy]

Originally posted by ThrashersFan
Okay, so the FDIC insures bank accounts up to $100,000, right? So that is per account? So a person can just open up another account at the same bank once one account hits $100,000 and still be covered? I love being boring.

It's per depositor, not per account, but yes, up to a point.

http://www.fdic.gov/deposit/deposits/insured/basic.html

Basic Insurance Limit
10. What is the amount of FDIC insurance coverage?
The basic insured amount of a depositor is $100,000. Accrued interest through the date of the financial institution's closing (failure) is included when calculating insurance coverage.

Deposits maintained in different categories of legal ownership are separately insured. So, you can have more than $100,000 insurance coverage in a single institution.

The most common categories of ownership are single (or individual) ownership, joint ownership, and testamentary accounts. Separate insurance is also available for funds held for retirement purposes, e.g., Individual Retirement Accounts, Keoghs, and pension or profit-sharing plans (see Questions 35, 36 and 37).

11. Can I increase FDIC insurance coverage by dividing my funds and depositing them into several different accounts?

No. Federal deposit insurance is not determined on a per-account basis. You cannot increase FDIC insurance by dividing funds owned in the same ownership category among different accounts. The type of account - whether checking, savings, certificate of deposit, or outstanding official check such as a cashier's check (see Question 4), or other form of deposit - has no bearing on the amount of insurance coverage. Furthermore, the use of Social Security numbers or tax identification numbers does not determine insurance coverage.