How much of your money is protected in the bank under FDIC?Since the economic meltdown of 2008, more than 460 banks around the country went out of business. The number of customers who came to me to inquire about FDIC coverage was astronomical, at the time I worked for a major financial institution in Long Island, NY. Those customers were skeptical as to the safety of their money.
Feb. 12, 2014 - PRLog -- It was like a smaller version of the depression of 1929 which led to the passage of the Glass-Steagall Act on June 16, 1933. Some 9,000 banks failed during that period of time. Because there was no Insurance coverage prior to the passage of the act, customers' deposits were lost. One of the major provision of the Glass-Steagall act was the creation of the Federal Deposit Insurance Corporation (FDIC).
At first deposits were insured up to $2,500, then after July 1, 1934 the coverage went up to $40,000. It was not until 1980 with the Monetary Control Act, that coverage was increased up to $100,000. Finally, on July 21, 2010, President Barack Obama signed the Dodd-Frank Wall Street Reform and Consumer Protection Act into law, which, in part, permanently raises the current standard maximum deposit insurance amount (SMDIA) to $250,000. The FDIC insurance coverage limit applies per depositor, per insured depository institution for each account ownership category. Consumers and bankers can find additional information regarding FDIC's deposit insurance coverage through the use of the FDIC's Electronic Deposit Insurance Estimator (EDIE) and deposit insurance publications located on the FDIC's website "Are My Deposits Insured?" In addition, they can call the FDIC at 1-877-ASK-FDIC (1-877-275-3342) The calculator is user friendly, once you start working with it you can play different scenario based on ownership type to see how much of your money is protected. Louis Bejot / Executive Director BLP Commercial, LLC End
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