You could get FDIC insurance coverage for the full amount by using the Certificate of Deposit Account Registry Service, or CDARS. Suppose you have more than $100,000 you\’d like to put in a CD — or millions. With the recent failure of IndyMac Bank, lots more people have been looking into FDIC insurance to see what is covered. FDIC insurance is backed by the full faith and credit of the United States government.
The original purpose of FDIC insurance was to help instill confidence in people so they would put money in the bank instead of under their matress. She called me from her bank this morning, freaked out over the failure of the IndyMac Bancorp, seized by the FDIC on Friday after a bank run in which panicked customers withdrew more than $1. You can easily verify that a bank is FDIC insured at the FDIC web site. There\’s higher insurance amounts for joint accounts or payable-on-death accounts, but they have to be carefully designated and labeled; not all bank employees seem clear on these rules.
Although some 2,000 US banks participate in CDARS it doesn\’t seem to get much press. And only then realized she had over $100,000 in her personal account. So it\’s extremely important to verify the banks status before you open an account. \”But it didn\’t instill me with confidence when she told me I couldn\’t just open another account for the overflow — it\’s one $100,000 account per social security number, per bank.
In the case of the unfortunate folks who banked at IndyMac, they\’re expected to get 50 cents on the dollar — or less — for amounts over the $100,000 in individual nonretirement accounts. Amounts over $100,000 are not insured. 3 billion of deposits in 11 business days. \”The bank teller told me Wells Fargo wasn\’t in danger — it was the smaller banks,\” she related to me.
\”Well, sorta. ) If the bank fails, the insured money is safe. And how safe is her money at Wells Fargo? Probably fine, but adding to my friend\’s anxiety, this morning John Bovenzi, chief operating officer of the Federal Deposit Insurance Corp, said in an interview that he expected to see more US banks fail . What must you do? Run all over town opening up accounts in every bank you see to insure your money is insured?There\’s a simpler answer many people don\’t know about.
And unfortunately for my friend, Wells Fargo doesn\’t offer it. She literally walked into her bank, a Wells Fargo, to make sure everything was OK. The FDIC short for the Federal Deposit Insurance Corporation is an independent agency of the United States government. The FDIC only insures and individual investor $100,000 in all nonretirement accounts per institution; $250,000 in a retirement account.
A good friend of mine owns a small store in West Hollywood, Calif. , a mom and mom store. As my friend noted, any amount above the insurance limits could be lost, or greatly diminished. .
. but not a large number. The FDIC protects you against the loss of your deposits if an FDIC - insured bank or savings association fails.
