Both the FDIC and NCUA have come out with new documentation explaining the recent changes in deposit insurance coverage. The FDIC just recently published consumer news where they describe the recent changes:
- The basic limit on federal deposit insurance coverage has been temporarily increased from at least $100,000 to at least $250,000 per depositor
- The basic FDIC insurance limit is scheduled to return to $100,000 on January 1, 2010.
- The FDIC has eased the rule governing the insurance coverage of revocable trust accounts
- Through year-end 2009, certain checking accounts at participating institutions will be fully insured by the FDIC, no matter how much money is in them
The National Credit Union Administration (NCUA) has a new document called Your Insured Funds (pdf). Some have questioned if the NCUA guarantee may be weaker than the FDIC guarantee. The "Forward" page states that:
The shares in your credit union are insured by the National Credit Union Share Insurance Fund (NCUSIF), which is backed by the full faith and credit of the U.S. Government.
The NCUA deposit insurance coverage and the recent changes closely mirror that of the FDIC. One detail that is a little different is the NCUA's definition of a payable on death (POD) account:
A POD account shows the intent of the account's owner that upon his or her death the funds will pass to one or more named beneficiaries. Typically, this intent is shown in the titling of the account by using words such as: in trust for or payable on death to.
The FDIC still requires the POD or similar term be specified in the account title.
Edit 5/20/09: Updated NCUA link and document title