uninsured are still covered for their insured amounts and half of their uninsured money. As assets of IndyMac are sold, they may receive even more.
As I described in this post, you can be FDIC insured above $100,000 with revocable trust accounts with payable-on-death (POD) beneficiaries. To receive additional coverage, it is required that the beneficiaries are qualifed which means they must be the owner's spouse, child, grandchild, parent, or sibling. And they must be alive (see post for all the details).
Delayed Access to Your Money
A reader mentioned in a comment that he had over $100K at Indymac and was fully insured via revocable trust accounts. Here's what he described:
Regarding the remaining money, I have an appointment scheduled for a phone call from FDIC on August 1st which is the next step I must take to recover my remaining funds. In the meantime, I have no access to any of these funds. Access to these funds is not critical to me at this time; however, I will make it a point to never deposit over the $100K limit again. It isn't worth the aggravation.
As I described in this post the FDIC is required by law to pay the insured deposits "as soon as possible" after an insured bank fails. With deposits under $100K, the time is typically only a couple of days. But with POD accounts that are over $100K, the FDIC will have to investigate, and this can take more time.
Update: This LA Times article is reporting on other issues related to trust accounts by Indymac customers with over $100K.
Other Ways to be Insured Over $100K
There are a few more options for those who want to go over $100K and still be insured. One is to open accounts at Massachusetts banks that have DIF insurance. As the DIF Depositors Insurance Fund website describes:
The DIF is a private, industry-sponsored insurance fund that insures all deposits above Federal Deposit Insurance Corporation (FDIC) limits at Massachusetts-chartered savings banks. The DIF has been insuring deposits since 1934.
It's important to note that this is private insurance with no government guarantees. One DIF-insured bank with accounts available nationwide is SalemFivedirect which offers a very competitive checking account with a top yield of 3.50% APY (see my account review). The only problem with this checking account is that the 3.50% APY only applies to balances from $100,000 to under $1 million. If you have over $1 million, you're out of luck. The rate drops to 0.50%.
Another option for those with over $100K is the Certificate of Deposit Account Registry Service (CDARS). This allows you to buy a CD of over $100K at one participating bank, and the deposits get spread around at several FDIC-insured banks so that all of your deposits are under $100K at each bank. The one problem with CDARS is that the rates are not usually the most competitive. Some examples of CDARS rates are available at GCF Bank and at AARP Financial Savings Center.
For federally insured credit unions, you are insured through the National Credit Union Administration (NCUA). This coverage is very similar to FDIC coverage. There are some credit unions that provide additional private insurance through American Share Insurance. This is called Excess Share Insurance and can provide up to $250,000 of additional coverage. It's important to note that this is private insurance with no government guarantees.
For more information on FDIC and NCUA insurance, please see my FDIC and NCUA post.
For the latest reviews of Indymac's closure, please refer to Monday Indymac post.