||Ask Dr. Don
FDIC insurance limits
Dear Dr. Don,
Can an individual have $100,000 in a single name, $100,000
in a joint account and $100,000 in an IRA account in the same bank
and be insured for $300,000?
The FDIC insurance limits for a single depositor at one
financial institution is $100,000, but by having individual, joint
and retirement accounts you can effectively increase the amount
of insured deposits at a single institution.
Rules put in place in April of 1999 allow the insurance
limit on a joint account to increase to $100,000 per joint account
owner. A joint account with your spouse could be insured for up
to $200,000 with each of you having $100,000 insurance. This is
over and above the $100,000 in insurance you can have in an individual
(single ownership) account. Using testamentary (payable on death)
accounts and other types of trusts and retirement accounts can increase
the amount of insured deposits at a single financial institution
The Federal Deposit Insurance Corporation (FDIC) has
a calculator called EDIE
on its Web site that will question you about your accounts and provide
information on the level of insured deposits at any one financial
Discuss your situation with a representative of your
bank if you're uncertain whether a deposit is insured. When in doubt,
divide and conquer by depositing money at another FDIC insured financial
institution -- not a different branch of the same financial institution.
Stay aware of mergers since whenever two or more insured depository
institutions merge, customer's deposits continue to be separately
insured for only six months from the date of the merger.
See this Bankrate feature for more on FDIC
-- Posted: May 15, 2003