Consumer Blog
Your bank account now has better insurance
The federal bailout plan signed by President Bush today is a huge, complex law. That's an understatement. But one of the parts that affects you and is easy to understand is that FDIC insurance for now covers bank accounts up to $250,000 - as opposed to the old number that's been around forever of $100,000.
Here is an excerpt from a CNN article:
The bill temporarily raises the FDIC insurance cap to $250,000 from $100,000. The bill allows the FDIC to borrow from the Treasury to cover any losses that might occur as a result of the higher insurance limit.
Federal bank regulators, who first floated the idea to Congress late Tuesday, said that bumping up the insurance limits would help improve liquidity at banks across the country. It may also provide a much-needed dose of confidence for consumers who may be worried about the health of their bank.
The bill will also temporarily increase the level of federal insurance for credit union savings to $250,000.
This a temporary measure intended in part to help consumer confidence in the banking system during the financial hard times.
Technorati Tags: NCUSIF, bailout, bank deposit insurance, finance, FDIC, moagoconsumer, consumer protection
Posted by on October 3, 2008 3:43 pm :: Comments (2) :: Permalink
2 Responses to "Your bank account now has better insurance"
says:
October 4, 2008 9:52 am
Why does it matter if we have $100,000.00 or $250,000.00 worth of insurance? Why does it matter if we have $250 trillion buried in the back yard? If people keep pulling their money out of the bank, IRAs and 401ks the stock market will crash, banks will close, and money no matter how much will have no value. So, even if it means taking one for the team, leave your money where it is and go on about life. I dont know if you remember back in the depression, but money had no value because people kept pulling out of the bank. WE ARE WELL ON OUR WAY BACK TO THE DEPRESSION PEOPLE!!!
says:
October 9, 2008 8:14 pm
Well it does matter. May not matter much for you there David, but as I can see we are in a depression, but no one wants to call it what it is. This is probably the best time for someone like myself, Working Poor, because I don't have any money in the bank and I'll refuse to put it in there. I'll take it one step further that when I need to borrow money from the bank I'll get turned down for someone that has more of it and if I get loaned to I'll pay more points than those who have more moeny. This problem was man made and the bailout is a joke. it is encouraging poor behavior and will end up costing the tax paying people. More points on a loan for me less money to be loaned out. Hell this bailout should be simple. Give those people that those companies were trying to screw over those homes. The morgage comapines knew what they were doing when they were doing it and wouldn't listen when told that it was a mistake. Now they are hoping that the government will bail them out. people are scared because the dollar in it self is only a piece of paper not backed by gold, silver or anything else. I believe its a good practice to buy gold because it will not devalue like paper will and it will always hold value as will silver and other precious items. Just my 2 cents we are alread in a depression and too many people are too scared to call it what it is they want to keep calling it a crisis. It's a depression plain and simple.
