FDIC Limit Decreases
Posted on Wednesday, March 13, 2013
Are your bank deposits insured?
Section 343 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) provided temporary unlimited deposit insurance coverage for non interest bearing transaction accounts at FDIC (Federal Deposit Insurance Corporation) institutions from December 31, 2010 through December 31, 2012. During this time period, checking and savings accounts that did not earn interest were fully insured, and those that did earn interest were insured up to $250,000 per bank. Beginning January 1, 2013 this changed. Now non interest and interest bearing accounts must be added together and are only insured up to $250,000 per depositor, per bank.
You should be aware of the risk of having cash in excess of the $250,000 FDIC limit. If your bank fails, you may only be able to recover your cash up to the $250,000 insured amount. In order to limit your risk, consider spreading your cash between multiple banks to avoid having more than $250,000 at one bank.
Posted by: Carrie Minnich, CPA
Posted in Mission Minded Nonprofits
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