FDIC Insurance Coverage Permanently Increased

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On July 21, 2010, President Obama signed the Dodd-Frank Wall Street Reform and Consumer Protection Act, which permanently raises the current standard maximum deposit insurance amount to $250,000. The FDIC insurance coverage limit applies per depositor, per insured depository institution for each account ownership category.

The standard maximum insurance amount had been temporarily raised from $100,000 to $250,000, effective from October 3, 2008, through December 31, 2013. This permanent increase of deposit insurance coverage means depositors with CDs worth more than $100,000 but less than $250,000 will no longer have to worry about losing coverage on those CDs maturing beyond 2013.

Insured deposits provide peace of mind to depositors that their money is 100 percent safe – provided they keep their deposit balances within the insurance limits. The FDIC encourages all bank depositors who have questions about their insurance coverage to visit their website or call 1-877-ASK-FDIC.

Congress created the Federal Deposit Insurance Corporation in 1933 to restore public confidence in the nation’s banking system. The FDIC insures deposits at the nation’s 7,932 banks and savings associations and promotes the safety and soundness of these institutions by identifying, monitoring the addressing risks to which they are exposed. The FDIC receives no federal tax dollars. Insured financial institutions fund its operations.

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