Recent bank failures have brought to light the insurance each bank depositor is eligible for through the FDIC (Federal Deposit Insurance Corporation).  The FDIC was part of the New Deal and became law at the height of the Great Depression for the purpose of restoring the confidence of people in our country’s banks. 

The FDIC currently insures accounts in an individual’s names up to the amount of $100,000.  A joint account is covered to a maximum of $200,000 and individual retirement accounts, such as IRA’s, have coverage up to $250,000.  Most people are aware of the FDIC insurance provided by banks, but are frequently not familiar with the limits of insurance provided for each type of account.    

Many depositors still prefer to keep all of their money at one local branch bank regardless of the insurance issue.  If this is the case, they can generally work with the bank so that their money will still be held at their local branch, but FDIC insurance will cover all of their funds regardless of their limit.  A conversation with your banker is all it will take to assure that your finances are safe and protected should there be a bank failure.  This is an important conversation to safeguard your assets and, if this scenario fits your financial picture, please have a meeting with your local bank officer who will be happy to suggest a variety of ways to maintain insurance on all of your funds. Statistics for the first quarter of 2008 show that of all the money on deposit with the banking industry in our country, 37.3% was not covered by the FDIC.  Do not let your account be one that is uninsured.