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| FDIC Update The lead article in our most recent issue newsletter issue reviewed FDIC limitations.
The FDIC (Federal Deposit Insurance Corporation) is an independent agency of the U.S. government that protects against the loss of deposits if an FDIC-insured bank or savings association fails.
We at Berwitz & DiTata were not the only ones who were concerned about the stability of our financial institutions in these tough economic times.
As part of the recent legislative enactments, the "government bail-out," FDIC limits have been increased, effective October 3, 2008 through December 31, 2009, as follows: | Single Accounts (owned by one person) | $250,000 per owner | | Joint Accounts (two or more persons) | $250,000 per co-owner | | IRAs and certain other retirement accounts | $250,000 per owner | | Trust Accounts | $250,000 per owner/per beneficiary subject
to specific limitations and requirements | Corporation, Partnership and
Unincorporated Association Accounts | $250,000 per entity | | Employee Benefit Plan Accounts | $250,000 for the non-contingent, ascertainable
interest of each participant | | Government Accounts | $250,000 per official custodian |
These refer to the total of all deposits that the accountholder(s) has at each FDIC-insured bank, assuming that all FDIC requirements are met. FDIC insurance covers funds in deposit accounts, including checking and savings accounts, money market deposit accounts and certificates of deposit (CDs).
FDIC insurance does not cover other financial products and services that insured banks may offer, such as stocks, bonds, mutual fund shares, life insurance policies, annuities or municipal securities. |
By: Lawrence N. Berwitz, Esq. & Maureen Rothschild DiTata, Esq.
Berwitz & DiTata LLP
Garden City, New York |
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