More on FDIC insurance rules

As discussed earlier on this blog, it  is important to know how FDIC insurance covers your savings, be it in retirement accounts, joint accounts, POD accounts, trust accounts, etc.

After the failure of IndyMac, it is especially important to be well-versed with the insurance rules.  IndyMac depositors may lose $1 billion of uninsured, unsecured, and unprotected funds.  These 10,000 uninsured depositors will only receive about 50% of their funds. See Bill Donoghue, After IndyMac Failure, Be Sure Your Accounts Are Properly Insured, FoxBusiness, July 15, 2008.

See also Kathy M. Kristof, Knowing your insurance limits on bank accounts is key, LA Times, July 20, 2008.

Note that extreme care must be taken in relying on “write ups” about the extremely complex FDIC rules.  Instead, use the FDIC’s Electronic Deposit Insurance Estimator.