Insider Banking

It has been on people minds recently – how do I protect my money when it is in the bank. Here at Insiderbanking.com we want to make sure you know a little more about FDIC limits so you can sleep a little better at night.

This is not going to be some long winded post delving into the depths of FDIC – go to their website for that, which can be found at http://www.fdic.gov

Rather, this is just a quick reminder – the maximum FDIC coverage is not $100,000. In fact you could shelter millions of $ across many different banks or indeed in any one bank.

It is 100K for an individual account, 200k for a joint accounts and 100k per signer and qualified beneficiary combination.

Qualified beneficiary? – well they are the people that the FDIC recognises. Parent, sibling, spouse, child, grandchild and adopted and step versions of those. Sadly not nieces, nephews and in-laws.

So hyperthetical scenario you and your wife have 2 kids and four darling grandchildren.

Maximum funds that could be insured …drum roll please….$1.8 Million – and that is before we get creative and include broker cd’s and retirement accounts.  You don’t believe us on the 1.8 do you.

Husband (100K)

Wife (100K)

Joint husband & wife (200K)

Husband ITF (In trust for or payable on death) Wife, Child 1, Child 2, Grandchild 1, 2, 3, and 4 (700K)

Wife ITF Husband,  Child 1, Child 2, Grandchild 1, 2, 3, and 4 (700K)

Now of course the Wife ITF for the tribe doesn’t all have to be one account, in fact your bank might not allow it.  It could be set up as seven seperate accounts with one beneficiary – each account covered for 100K.

Anyway – we just wanted to clear that one up a little bit.

If you have any questions, about this or anything else then please leave us a comment and we will do our best to answer it.