FDIC insurance up to $100,000 -- is that PER bank account?

[teddyFBI]

I notice that my ING Orange Savings account is FDIC insured up to $100,000. So obviously I'm not going to keep more than 100G in there. When my savings exceed 100G, if I open a new account with a different financial institution -- maybe Emigrant Direct b/c they also have a good online savings acct interest rate will EACH account be FDIC insured up to 100G?? Or is the 100G max per PERSON?

[phy1234]

each

[toddw8]

Two accounts at different institutions are each insured.

Two accounts at the same institution are not.

[boedeker]

first world problems.

[PorscheNGuns]

Why keep 100K in a deposit institution? Interest rates won't even come close to yearly inflation.

-Matt

[bort411]

Perhaps you should take some of your 200K and hire an accountant who knows the answers to these questions.

[teddyFBI]

[ QUOTE ]
Why keep 100K in a deposit institution? Interest rates won't even come close to yearly inflation.

-Matt

[/ QUOTE ]

Historical inflation rates are 2-3%. ING's interest rate is 3.3%.

Anyway, if you had 100G, what would you do with it from a savings perspective?

[TStoneMBD]

ive had to research this exact question in the past which is why i currently hold all my money in 7 FDIC $100k accounts.

[Colonel Kataffy]

[ QUOTE ]
i currently hold all my money in 7 FDIC $100k accounts.

[/ QUOTE ]

Shameless bragging. /images/graemlins/tongue.gif

[Dr. StrangeloveX]

Fed pretty much won't allow one of the say top 50 largest banks to fail, so if you put more than 100k in one of those you don't have much to worry about. Other than getting owned by inflation.

[lastsamurai]

100 K at banks...
100 K + 400 K at broker/dealers.

Open up an account at a discount brokerage firm and ask them if you could open up a checking account.

[Brainwalter]

[ QUOTE ]
I notice that my ING Orange Savings account is FDIC insured up to $100,000. So obviously I'm not going to keep more than 100G in there.

[/ QUOTE ]

Haha, obviously.

[jason_t]

[ QUOTE ]
[ QUOTE ]
i currently hold all my money in 7 FDIC $100k accounts.

[/ QUOTE ]

Shameless bragging. /images/graemlins/tongue.gif

[/ QUOTE ]

He doesn't necessarily have $700k....

[pudley4]

[ QUOTE ]
Two accounts at different institutions are each insured.

Two accounts at the same institution are not.

[/ QUOTE ]

Wrong.

Two accounts with the same ownership count together when determining how much is insured.

Two acounts with different ownership are counted separately. Example: You have 3 accounts, all with $100k in them. One is a savings account in your name, one is a savings account with your son listed as the sole beneficiary, and one is a savings account IRA. In this case, because they all have separate ownership types (the first is single ownership, the second is POD "payable on death" or "In trust for", the third is an IRA), you would be insured for $300k.

The FDIC has strict rules about ownership types and how they are differentiated.

[jakethebake]

no

[jaydub]

[ QUOTE ]
Perhaps you should take some of your 200K and hire an accountant who knows the answers to these questions.

[/ QUOTE ]

Exactly and with >100K to invest many, many reputable firms will be quite happy to provide quality, free financial planning advice.

[toddw8]

[ QUOTE ]
[ QUOTE ]
Two accounts at different institutions are each insured.

Two accounts at the same institution are not.

[/ QUOTE ]

Wrong.

Two accounts with the same ownership count together when determining how much is insured.

Two acounts with different ownership are counted separately. Example: You have 3 accounts, all with $100k in them. One is a savings account in your name, one is a savings account with your son listed as the sole beneficiary, and one is a savings account IRA. In this case, because they all have separate ownership types (the first is single ownership, the second is POD "payable on death" or "In trust for", the third is an IRA), you would be insured for $300k.

The FDIC has strict rules about ownership types and how they are differentiated.

[/ QUOTE ]

From www.fdic.gov (http://www.fdic.gov):

[ QUOTE ]
Q: Can deposit insurance be increased by depositing funds into several different accounts all at the same financial institution?

A: No. All funds held in the same type of ownership at the same institution are added together before deposit insurance is determined. If the funds are in different types of ownership, or are deposited into separate institutions , however, they would then be separately insured.

[/ QUOTE ]

This is what I was referring to. I assumed he was asking about accounts under his own name.

[threeonefour]

people should note that the FDIC has a history of honoring all deposits well beyond 100,000$ even though technically 100,000 is all they actually have to pay back by law.


especially at very large banks. its "too big to fail principle," if you let one big bank go under it could theoretically take down the entire american financial system... which in turn could kill the world economy