Insure Your Money, Diversify Your Accountsby Tim Manni
Under federal law, the Federal Deposit Insurance Corporation (FDIC) fully insures individual savings accounts up to $100,000, joint accounts up to $200,000, and individual retirement accounts up to $250,000.
The recent takeover of IndyMac by federal regulators serves as a cautionary tale. Droves of customers flocked to the bank demanding to withdraw their money. However, customers with accounts over the FDIC-insured limits may be out of luck, and out of a whole lot of money.
Your bank may not be in trouble, but it’s better to play it safe – if you have more than $100,000 in your bank account, you should diversify by opening up an additional account with a different bank.
We suggest anyone with accounts over the FDIC insurance caps diversify their funds into smaller individual or joint accounts.