Florida Office of Insurance Regulation Advising Review of FDIC-Insured Bank Accounts
Feb 16, 2010
By Sandy P. Fay, Associate
Citing the recent failure of a number of banking institutions, the Florida Office of Insurance Regulation has sent notices to insurers suggesting that they review their checking, savings, trust and certificate of deposit accounts in light of the $250,000 limit of insurance coverage provided by the Federal Deposit Insurance Corporation (“FDIC”). How insurers will be reviewing this issue is also part of the query.
At its insured banks, the FDIC currently provides a total of $250,000 in insurance coverage per depositor. This amount of coverage is scheduled to revert to $100,000 on January 1, 2014.
FDIC insurance covers all deposit accounts, including checking and savings accounts, money market deposit accounts and certificates of deposit. FDIC insurance does not cover other financial products and services that banks may offer, such as stocks, bonds, mutual fund shares, life insurance policies, annuities or securities. A summary of FDIC deposit insurance coverage can be found at http://www.fdic.gov/deposit/deposits/dis/index.html.
The Certificate of Deposit Account Registry Service (“CDARS”) is a service that disperses large deposits from individuals, companies and others into smaller certificates of deposit with member banks in increments below the FDIC limits, so that each certificates of deposit is eligible for full FDIC insurance. For information about CDARS, please go to the following hyperlink: http://www.cdars.com/index.php.
Should you have any questions concerning the foregoing, or need any assistance on making sure that your assets are protected against the possibility of a bank failure, please contact Colodny Fass.
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