Tuesday, February 2, 2010 - 12:35 AM
Dear Banking Guy,
Currently FDIC Insurance is $250k, but expires on 12/31/2013. On 1/1/2014 the FDIC insurance would drop to $100k, unless congress extends the FDIC Insurance coverage on a permanent basis.
This is important as if someone deposits $200k in a 7 year CD, based on current rules on 1/1/2014 they would be only insured for $100k. As a depositor it is a bad idea to be putting more than the FDIC limit into any bank, unless it is a too big to fail.
I haven't seen you mention this, and I presume it's because everyone is probably under the perception that the $250k limit is going to be permanent.
You have a great blog!
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May 9, 2010
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