FDIC Extends $250,000 Coverage Limit Through 2013

May 21, 2009
By Kevin Cafferty

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We remarked before that an extension to the increased FDIC limit was happening, and yesterday President Obama signed it into law. According to the FDIC Website, deposits at FDIC-insured institutions are now insured up to at least $250,000 per depositor through December 31, 2013. On January 1, 2014, the standard insurance amount will return to $100,000 per depositor for all account categories except for IRAs and other certain retirement accounts which will remain at $250,000 per depositor.

The FDIC goes on to state that these changes supersede the previous extension made on October 14, when the increased coverage limit first came into effect (that increase was initially supposed to end on December 31 of this year.)

It should also be noted that joint accounts - accounts held by a married couple, for instance - are covered at twice this level, up to $500,000.

At MoneyAisle.com, live auctions for savings accounts or CD rates support these increased FDIC limits. MoneyAisle.com users can deposit up to $500,000 in a MoneyAisle account - and every bank in the MoneyAisle network is an FDIC member.

What do you all think - will this extension eventually be made permanent or will the FDIC coverage limit actually revert back to $100,000 in 2014?

You can read more about the FDIC increase on their Website:
http://www.fdic.gov/deposit/deposits/changes.html