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Do investors win with the Dodd-Frank Act?

FDIC insurance limits
FDIC insurance limits

In October 2008, the FDIC insurance limit was raised to $250,000 as a temporary measure during the financial crisis. According to the new legislation, it will now be the permanent level of deposit insurance available to consumers. As before, the insurance limits are per person, per institution.

The insurance limit at thrifts and credit unions was also increased to $250,000.

The increase is retroactive to Jan. 1, 2008, so depositors who lost money at the banks that failed before the limit was raised, including the infamous IndyMac, will be reimbursed for money they were unable to recover at the time.

"The fact that the $250,000 limit is now in effect permanently removes any uncertainty consumers might have, particularly with money invested in longer-term CDs that would have matured after the December 2013 time frame. Now investors can rest easy knowing the $250,000 limit is in effect," says Greg McBride, Bankrate.com's senior financial analyst.

There are ways to get more than $250,000 of deposit insurance. With different types of ownership registrations, a couple could insure quite a bit at one institution. For instance, two individual accounts and one joint account will be insured up to $1 million.

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