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FDIC Specifics Question
Old 10-01-2007, 09:25 PM   #1
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FDIC Specifics Question

Does FDIC insurance cover a single account in toto up to $100,000 or could a depositor place $100,000 in principle into an FDIC protected instrument and have that principle and it's interest both protected?

I'm pretty sure it's the former situation. A depositor would get back a maximum of $100,000 and no more (per acct) if the issuing institution got a booboo.

Bankers? Financiers? Anyone with real world experience?

FDIC insurance is one of the few GOOD things gvmt does and recent events point to it's importance.

Too bad Al "Conundrum" Greenspan didn't allow the $100k limit to be increased.
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Old 10-01-2007, 10:06 PM   #2
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Quote:
Originally Posted by barbarus View Post
Does FDIC insurance cover a single account in toto up to $100,000 or could a depositor place $100,000 in principle into an FDIC protected instrument and have that principle and it's interest both protected?

I'm pretty sure it's the former situation. A depositor would get back a maximum of $100,000 and no more (per acct) if the issuing institution got a booboo.

Bankers? Financiers? Anyone with real world experience?
I'm not a banker or a financier and thankfully I have no real world experience, but I do have a link to the FDIC website which says in part:

What is the FDIC insurance amount?
The basic insurance amount is at least $100,000 per depositor, per insured bank. This includes principal and accrued interest up to a total of at least $100,000. For example: Jane Smith has a CD in her name alone with an original balance of $98,000. Jane has interest earned of $3,000. Jane’s account now totals $101,000. Jane is insured up to $100,000 and $1,000 is uninsured.
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Old 10-01-2007, 10:44 PM   #3
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Everything you've ever wanted to know about the FDIC but were afraid to ask never asked. Well...not everything....but a lot! "Your Insured Deposits"
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Old 10-01-2007, 10:53 PM   #4
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Thank you gentlemen. Exactly what I wanted to know. Obviously some moderate math is required to determine how much to deposit to hit the magic 100K number on the day a CD becomes mature. This would be easiest for a one year maturity, a bit more effort to calculate partial year or multi year instruments.

I suppose most people wouldn't go to the trouble.
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Old 10-02-2007, 09:29 AM   #5
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Too bad Al "Conundrum" Greenspan didn't allow the $100k limit to be increased.

---

FWIW - he had nothing to do with it. He worked at the Fed, not the FDIC, and increases to the limit would have to be approved by Congress and the President, and it is legislation that sets the amount.
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Old 10-02-2007, 05:51 PM   #6
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That's the interesting part kaudrey. He should not have been involved, but the story is that he was the man behind the curtain that pulled the FDIC strings.

I don't know. He won't tell me.
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