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Breakfast Discussion: 8 Things You Need To Know About FDIC And Your Accounts [News]

July 16th, 2008 • Related • Filed Under

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So this is one of the very few times where we’ll get down to brass tacks and talk about economics on this site, frankly because boobies and video games are way cooler. But it’s becoming harder and harder to ignore the sometimes very depressing economic realities around us. And we can only live in our fantasy world of nipples and sprites for so long before the bills have to get paid.

Yesterday morning on the way to work, I was shocked (okay so not terribly shocked) to hear George Bush saying that the economy is “not as good as he would like” but “isn’t bad”. Oh. That’s why the following 2 stories in the news were: the government scrambling to figure out a plan to keep mortgage lender gargantuans Fannie Mae and Freddie Mac from going under so millions of people suddenly aren’t homeless and police summoned to IndyMac bank locations to prevent riots after people had been queuing since 1:30 in the morning to withdraw their money after the bank, one of California’s largest went tits-up and had to be taken over by the FDIC.

No, everything is going swimmingly.

So this is a good time to assess the future and you can go in two directions– the crazy survivalist Libertarian and hoard all the cash, guns and canned food you can store or you can remain calm but aware to what’s going on around you.

With that in mind, here are 8 things you need to know about the FDIC and your accounts from The Consumer Warning Network:

1. Deposits for an individual are insured up to $100,000.
2. Joint deposits for 2 individuals are insured up to $200,000.
3. Retirement Accounts such as an IRA are insured up to $250,000.
4. Business Accounts are insured up to $100,000.
5. Having multiple accounts at branches of the same bank does NOT increase your insurance.
6. Having different deposit accounts at the same bank does not increase your coverage. All of your individual accounts are added together.
7. If you have a loan that is secured with a c.d. or other deposit account, the FDIC may be able to satisfy the loan first. What’s left of your deposit account will be insured up to above stated limits. This is the “doctrine of offset” and is not a rule.
8. Brokerage accounts are NOT insured by the FDIC. However certain accounts held at a brokerage firm may be insured, such as cash accounts. You need to check with you broker.

It’s not the time to start pulling out all your money– that’s what really causes the shit to hit the fan– but it should be a time to essentially look around you for the exit routes in case fire does break out. Even though your bank will tell you “everything is fine”, it might be worth your time to try and find someone at the bank to sanely answer your crazy questions.

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