New FDIC Limits Take Effect Today

The new FDIC limits take effect today which increases the deposit insurance of individual retirement accounts held at banks to $250K up from $100K. For deposits held outside IRAs, the limit remains at $100K. Every five years starting in 2011, the FDIC will consider an increase in the insurance limits on all deposit accounts based on inflation.

These new insurance limits also take effect at credit unions that are insured by the NCUA.

It should be noted that there are several ways people can extend their insurance limits within the same bank or credit union. Refer to this post for more information on this.

Credit goes to a reader who reminded me of this change. Also, the reader mentioned a good point. With a larger amount at one bank, you'll have a better chance at negotiating a higher rate.