If i have 20000.in saving account+100000.in cd IRA how much i be cover by FDIC if bank fall?

Question

If i have 20000.in saving account+100000.in cd IRA how much i be cover by FDIC if bank fall?

Answer 1

You can find out a whole lot from the FDIC website, here's a video that I found helpful:

http://www.vodium.com/MP/MPF/1.1.3/mpf.a...

From the video:

"FDIC Insurance covers total of all deposit accounts at an insured bank, including branch offices, up to the FDIC's insurance limit."

Additionally: "basic insurance limit is $100,000 per depositor, per insured bank".

So if bank failure is a concern for you, leave some of that money in your current account (leave say, $90,000 or so, to allow for interest) and put the rest of it, up to another $100,000, IN AN ENTIERLY DIFFERENT BANK.

DO NOT PUT IT IN A DIFFERENT BRANCH OF YOUR ORIGINAL BANK!

So for someone with $250,000, it would look like this:

Bank A: $90,000

Bank B: $90,000

Bank C: $70,000

Now, the video goes on to state that yes, there are ways for you to be insured for more than $100,000s worth of deposits, but that is going to depend on the type of accounts you hold. The simplest solution still seems to me that you put the appropriate amounts in different banks, while you consult a fee only financial planner to figure out if there is a way you can keep everything with the same institution.

Also, unless you have a need to have that much money sitting around in a low interest paying account, you should really consider seeing a fee only financial planner. My concern when I first read this question was that you have over $100,000 that's probably not keeping up with inflation: you are therefore losing purchasing power on that money.

You can read more about inflation here, from my website:

http://btgnow.net/perfina/inflation1.htm...

Good luck!

Answer 2

FDIC coverage is limited to $100K for ALL of your accounts total in that bank, including if they are in different branches.

Answer 3

They are saying the FDIC insures up to $100K in a regular bank account and $250K in an IRA.