FDIC

The limit on insured accounts under the Federal Deposit Insurance Corporation (FDIC) was raised to $250,000 by the Emergency Economic Stabilization Act (which the President has signed). The increase is effective immediately but returns to $100,000 after December 31, 2009.

The increase applies to federal credit unions as well.

What Is Insured?
You are probably familiar with the traditional types of bank accounts – checking, savings, trust, certificates of deposit (CDs), and IRA retirement accounts – that are insured by the FDIC. Banks also may offer what is called a money market deposit account, which earns interest at a rate set by the bank and usually limits the customer to a certain number of transactions within a stated time period. All of these types of accounts generally are insured by the FDIC up to the legal limit of $250,000 and sometimes even more for special kinds of accounts or ownership categories.

FDIC-Insured

• Checking Accounts (including money market deposit accounts)
• Savings Accounts (including passbook accounts)
• Certificates of Deposit

Not FDIC-Insured

• Investments in mutual funds (stock, bond or money market mutual funds), whether purchased from a bank, brokerage or dealer
• Annuities (underwritten by insurance companies, but sold at some banks)
• Stocks, bonds, Treasury securities or other investment products, whether purchased through a bank or a broker/dealer

FDIC