FDIC Insurance Increase

You might remember that back in October of 2008 at the height of the financial crisis the limit on the maximum deposits insured by the Federal Deposit Insurance Corporation was temporarily raised from $100,000 to $250,000.  On July 22, 2010, President Obama signed into law the Dodd-Frank Wall Street Reform and Consumer Protection Act.  With the signing of this bill, the increase in insurance was made permanent, retroactive to January 1, 2008.  This provided relief for many customers of banks that failed during the financial crisis.  It also provides us with a new measuring stick for how much cash anyone should hold in any single account.  As a result of this increase you should now try to limit the cash in any one account in your name to $250,000 (although with different ownership you may be able to increase this amount).  If you'd like to read more about the FDIC insurance you can read this article from Forefield advisor.