This Day On The Street
Continue to site right-arrow
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
TheStreet Open House

Are Your Deposits Still Insured?

On January 1, a change in FDIC rules lowered the amount of deposit insurance coverage available on certain large accounts. This not only affects accounts directly covered by the rule change, but could also impact other types of accounts a depositor has at the same bank.

It's important to review your accounts to make sure they are still covered in full by FDIC insurance, particularly if you have a large amount on deposit at any single bank. As a bonus, this also provides a great opportunity to review your checking and savings accounts to make sure you're using the most competitive financial products available.

Checking account rule changes

As one measure to shore up the banking system in the wake of the financial crisis, the Dodd-Frank Act temporarily removed the $250,000 limit on FDIC insurance coverage for non-interest-bearing transaction accounts, a category that includes many checking accounts. The idea was to reduce the potential for a drain on bank deposits by giving customers an added degree of protection.

The Dodd-Frank Act made this expanded coverage effective from December 31, 2010 to December 31, 2012. As a result, as of January 1, 2013, the amount of coverage for those accounts reverted back to $250,000.

How this could also impact savings accounts

Having the coverage limit for non-interest-bearing transaction accounts revert back to $250,000 could mean some loss of coverage for those accounts, but it could also affect savings accounts as well.

During the temporary period of unlimited coverage for certain checking accounts, balances in those accounts were not added to amounts in other types of accounts, such as savings accounts, for the purposes of determining the $250,000 insurance limit. Ordinarily, each depositor is entitled to a maximum of $250,000 in coverage for all deposits at any given bank, regardless of how many accounts the depositor has at that bank.

1 of 2

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
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

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
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,976.31 +263.65 1.49%
S&P 500 2,086.24 +25.22 1.22%
NASDAQ 4,947.4410 +56.2220 1.15%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs