With the challenges in the banking industry, many American’s have wondered if their money is safe in a bank. Initially, there was a bill put into effect that would temporarily increase the FDIC insurance limits on most bank deposits. More recently, President Obama signed a bill that postpones the expiration of the increased FDIC insured limits. Under the new law, $250,000 per depositor will be insured until December 13, 2013. When the original insured amount of $100,000 was raised to $250,000, the increase was set to expire at the end of 2009.
The new law does not change or extend coverage applicable to IRAs and certain other retirement accounts. Those accounts will continue to be covered up to $250,000 per owner, just as they were prior to the changes in the limitations.