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Question On Bank Failures

GH1
  |     |   1,053 posts since 2017

If the bank fails. Are we still covered for more than 250k with joint holders and or beneficiaries?

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2


Answers
CDmanFL
  |     |   286 posts since 2019
My understanding is that you can get $1,500,000 of insurance coverage this way:
1) Joint husband and wife $500K
2) Individual husband $250K
3) Individual wife $250K
4) Husband POD for wife $250K
5) Wife POD for husband $250K
Do you guys agree? If not, I could be in big trouble!
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txFish1
  |     |   476 posts since 2023
CDmanFL The first 3 scenarios you have listed are for certain as well as you could get another 250K coverage for husband IRA and $250K coverage for wife IRA (pretty sure the 250K IRA coverage is total including all ROTH and Traditional IRA's). One thing I am not clear on is the PID coverages.
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txFish1
  |     |   476 posts since 2023
Meant POD coverage not PID
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CDmanFL
  |     |   286 posts since 2019
Can one of our friends on here opine on this? I’m pretty sure the scenario that I laid out above is accurate but now I’m a little nervous. I could lose my shirt if I’m wrong.
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Ltssharon
  |     |   471 posts since 2020
I am old enough to have survived from when the FDIC changed from 500k to 250 k for a single individual. Back then this change required me to run around and redistribute my cds into more financial institutions. Remember, rules do change.
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JeffinEasternFL
  |     |   744 posts since 2020
when ever was it 500K? I remember 50K and 100K $$ and I am about 64
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Ltssharon
  |     |   471 posts since 2020
Whatever you do, you absolutely must go to EDIE, The government fdic coverage calculator and enter your in formation. If you are in credit unions go to the ncua insurance coverage calculator. Do this sooner than later and let us know how it turns out.
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JeffinEasternFL
  |     |   744 posts since 2020
exactly...
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GH1
  |     |   1,053 posts since 2017
Ok i did that. As a single person and 2 living beneficuaries it does say i am covered. Just making sure. As things sound like they can go crazy soon. And everyone needs to be prepared. Appreciate everyone help there
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txFish1
  |     |   476 posts since 2023
The NCUA insurance coverage calculator is great as it lets you put in the name of the credit union to make sure they are covered and then you can put in the exact amounts you have and how each account is styled (single,joint, IRA etc) and then it tells you what is covered and you can print it out for your records. FDIC is the same
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me1004
  |     |   1,379 posts since 2010
Of course! That's the point of coverage, and that's the point of the extra coverage the FDIC gives for those joint holders and beneficiares. Just make sure you understand how much extra coverage you get for the beneficiaries and joint holders. (For instance, a single beneficiary does not get you extra coverage, and at least for an individual account, it's the second and beyond beneficiary who gets you extra coverage.)
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txFish1
  |     |   476 posts since 2023
GH1, I have a neighbor that is a manager for a large Credit Union and she printed me off a NCUA info sheet that reads. 1. Single accts NO beneficiaries $250k 2. Joint accounts NO beneficiaries $250k. 3. IRA's 250k per account holder. I do not remember what the sheet said about beneficiaries. In non retirement money that alone gets you and another person 500k in single accounts and another $500k in a joint account.
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GH1
  |     |   1,053 posts since 2017
Thank u for that info
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GH1
  |     |   1,053 posts since 2017
Thank you sir
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sams1985
  |     |   781 posts since 2022
Shouldn’t joint accounts be 500k unless it’s written as 250k per person ?
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txFish1
  |     |   476 posts since 2023
yes joint accounts are 500K
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TheInfoMan
  |     |   15 posts since 2018
Folks posting here have more faith in the stability of the financial system than I do. I am still haunted by the 2008 memory of a few money market funds breaking the $1.00 benchmark which prior to that was unthinkable. So to in 2023, I don't think the FDIC can withstand the avalanche of bank failures that still lay ahead of us (IMHO). BTW, if your bank is publicly traded there is a way to check there "unrealized losses" vs deposits, assets, etc. Ask if interested.
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ocsteve
  |     |   96 posts since 2010
It does not matter if a Bank is publicly traded or not, to get the unrealized loss info on the FIs investments. You go to the FDIC website and look at the FIs most recent Call Report. Same process for CUs, go to the NCUA website and look up the CUs Call Report. If you need exact Report line numbers, let me know.
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