mountainsoft
Thinks s/he gets paid by the post
I recently setup three online savings accounts with Discover bank.
One is a joint account with me and my mom. My wife is designated as the beneficiary.
The second is a joint account for my wife and I. Our daughter is designated as the beneficiary.
The third is also a joint account for my wife and I (kept separate for helping her mom), with our daughter as the beneficiary.
Everything is well except my mom is selling her house and we were planning to put the proceeds into her savings account (the first of the three listed). However, this will make the total of the three accounts above the $250,000 FDIC coverage.
I've been reviewing the FDIC web site: https://www.fdic.gov/deposit/covered/categories.html
For joint accounts it sounds like the coverage is $250K PER OWNER, which would give us at least $500K coverage, more than we need.
However, because we designated a beneficiary for each of the savings accounts they're now considered a "Revocable Trust" by the FDIC. If I'm understanding that correctly, that would drop the coverage back down to the $250K level because there's only one beneficiary. That seems odd to me that coverage would drop just because we designated a beneficiary.
Am I misunderstanding the FDIC rules or do I need to move some money to another bank?
One is a joint account with me and my mom. My wife is designated as the beneficiary.
The second is a joint account for my wife and I. Our daughter is designated as the beneficiary.
The third is also a joint account for my wife and I (kept separate for helping her mom), with our daughter as the beneficiary.
Everything is well except my mom is selling her house and we were planning to put the proceeds into her savings account (the first of the three listed). However, this will make the total of the three accounts above the $250,000 FDIC coverage.
I've been reviewing the FDIC web site: https://www.fdic.gov/deposit/covered/categories.html
For joint accounts it sounds like the coverage is $250K PER OWNER, which would give us at least $500K coverage, more than we need.
However, because we designated a beneficiary for each of the savings accounts they're now considered a "Revocable Trust" by the FDIC. If I'm understanding that correctly, that would drop the coverage back down to the $250K level because there's only one beneficiary. That seems odd to me that coverage would drop just because we designated a beneficiary.
Am I misunderstanding the FDIC rules or do I need to move some money to another bank?