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FDIC Insurance increase extended

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FDIC Insurance increase extended

The increase in FDIC Insurance coverage for deposit accounts was originally slated to end on December 31, 2009, but the increased coverage will now be in effect for four more years.

On October 3, 2008, the Federal Deposit Insurance Corporation (FDIC) started insuring deposits at FDIC-insured banks and institutions up to at least $250,000 per depositor. The increased coverage was supposed to expire on December 31, 2009 (and revert back to previous, lower coverage) but has now been extended through December 31, 2013.

See also: Recent FDIC changes and how they affect you

The extension of FDIC Insurance coverage on deposit accounts is a measure to help quell consumer apprehension about placing hard-earned money in the financial markets and the banking system. All interest-bearing savings accounts – money market, certificates of deposit and savings – will continue to be covered at $250,000 per depositor for at least four more years. Other types of deposit accounts are insured at increased levels, as well.

Recommended resource: Compare savings rates

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