Because of a spate of bank failures in the l930s, the federal government established the Federal Deposit Insurance Corporation (FDIC, www.fdic.gov) to guarantee deposits in the event of bank failures (there’s a similar insurance for savings and loan associations called the Federal Savings and Loan Insurance Corporation). The maximum amount insured in any bank or savings association is constantly being reviewed and currently stands at $ 100,000 for a single person or $200,000 for a couple. Note, however, that deposits maintained in different rights, capacities or forms of ownership are each separately insured, so it’s possible to have more than one insured account with the same insured bank, although retirement funds such as an IRA, Keogh and 401(k) plan aren’t insured separately.
Make sure that each separate deposit isn’t more than $100,000 (or $200,000 for a joint account) and that all deposits in any financial institution are covered by the FDIC guarantee. Note that separate accounts in different branches of the same bank (e.g. current and savings accounts) are treated as one account for the purposes of the FDIC insurance. Never deposit any money in a bank that isn’t covered by the FDIC (insured institutions must display an official FDIC sign). S&Ls and banks have to pay higher premiums for their FDIC insurance, which in turn means higher bank charges for customers. All banks publish information about FDIC insurance rules
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