This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

CIT Group Failure Highlights Insurance

Checking accounts (including money market deposit accounts, which aren't the same as money market mutual funds), savings accounts, certificates of deposit (CDs) and retirement accounts are eligible for FDIC protection.

Investment-grade products purchased from a bank isn't entitled to the same protection. Mutual funds, annuities, stocks, bonds and Treasury securities are usually transferred to other institutions in the event of a failure. But those offerings aren't insured or otherwise protected by either the FDIC or government guidelines. Contents of safe deposit boxes also aren't protected by FDIC insurance.

The CSC offers additional suggestions for consumers.

Make sure a CD's value is $100,000 or less. Deposits are fully protected under federal law and FDIC rules because the basic insurance coverage is $100,000 per depositor per insured institution.

Customers may qualify for more than $100,000 in coverage at one insured bank if they own deposit accounts in different "ownership categories." For example, savings and checking accounts that are individually owned will be viewed as a single account and need to fall below the $100,000 limit for full protection. A jointly owned certificate of deposit, however, will be treated as separate from those accounts, and fully protected as long as it tops out at $100,000.

According to the CSC, FDIC rules for some ownership categories allow you to hold more than $100,000 in one account and still be insured. Most retirement accounts are insured up to $250,000 per owner per bank.

Revocable trust accounts can be insured for up to $100,000 for each beneficiary. Accounts for five children with such an account can be insured for a total of $500,000.
2 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
CIT $46.51 0.00%
WFC $57.59 0.00%
AAPL $122.77 0.00%
FB $94.20 -2.80%
GOOG $627.26 0.00%

Markets

Chart of I:DJI
DOW 17,568.53 -127.94 -0.73%
S&P 500 2,079.65 -12.01 -0.58%
NASDAQ 5,088.63 -48.8540 -0.96%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs