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It's Official: Basic FDIC Insurance Coverage Permanently Increased to $250,000


The FDIC just released this press release which announced that the standard maximum deposit insurance amount has been permanently increased to $250,000. Here's an excerpt:

On July 21, 2010, President Barack Obama signed the Dodd-Frank Wall Street Reform and Consumer Protection Act, which, in part, permanently raises the current standard maximum deposit insurance amount to $250,000. The standard maximum insurance amount of $100,000 had been temporarily raised to $250,000 until December 31, 2013. The FDIC insurance coverage limit applies per depositor, per insured depository institution for each account ownership category.

The temporary increase from $100,000 to $250,000 was effective from October 3, 2008, through December 31, 2010. On May 20, 2009, the temporary increase was extended through December 31, 2013.

One thing that was not mentioned in the press release was the retroactive increase to Jan. 1, 2008. IndyMac depositors and depositors from a few other banks that failed in 2008 before October will now be able to recover some or all of their money that had been uninsured. Update 7/22/10: The FDIC issued another press release focusing on the retroactive increase. According to the press release, the FDIC will be mailing checks on 7/22/10.

This deposit insurance change will also apply to credit unions. The NCUA is typically slower than the FDIC, so I expect we'll see a NCUA press release later this week. Update 7/22/10: The NCUA just released its press release on this change.

  |     |   Comment #1
I already put in my 2 cents on this in another post, I'm glad that this hurdle is over with.

Now to wait out uncle Ben and see how long it takes for the banks to start to realize they may loose some depositors if they don't watch their rates closer now that they can redistribute funds.

  |     |   Comment #2
That mat have already happened (in response to the first thread). WT Direct raised it's savings account rates today. I wonder if it was related??

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