Taking advantage of FDIC: Protecting your money

The FDIC (Federal Deposit Insurance Corporation) is a government institution that insures bank deposit accounts up to 100,000 in the event of a bank failure.  Most people know that their normal savings, checking, or CD accounts are covered but there are ways of getting more coverage. If you have over 100,000 in investments then it may be wise to spread out your money if you want to take full advantage of the FDIC.

Joint Accounts
The FDIC insures up to $100,000 for each joint account holder so you can be covered for up to $200,000 if you open a joint deposit bank account.

Brokerage CDs
Brokerage CDs are CDs that can be bought and sold on the market. These CDs are riskier than classic certificates of deposit because they may gain or lose value since they are subject to market risk. The FDIC does cover these brokered CDs for up to 100,000 each.

Retirement Accounts
IRAs and some 401k accounts are covered by the FDIC for up to $250,000. Be aware that you are covered for the total of all your covered accounts up to $250000 (not separate coverage for each account).

Credit Union Accounts
The NCUA (National Credit Union Administration) provides similar coverage to Credit Unions. Of course the Credit Union must be a member of the NCUA to be covered.