Increased FDIC insurance on Retirement Accounts

The limit on the federal deposit insurance coverage that protects your retirement savings has increased. This new law, which went into effect on April 1, 2006, provides up to $250,000 of protection for the combined total of the traditional and Roth IRAs (Individual Retirement Accounts), self-directed Keoghs and certain other retirement accounts an individual may have on deposit at an FDIC-insured bank or savings institution. This is an increase from $100,000 of previous coverage.

FDIC insurance coverage for self-directed retirement accounts applies primarily to certificates of deposit "CDs" and savings accounts. The FDIC does NOT insure investments that are not bank deposits, --- for example, mutual funds, stocks, bonds, life insurance policies, and annuities -- even if you purchased them from an FDIC-insured institution.

This means good news for many customers who have saved substantial sums for their retirement and want to deposit more than $100,000 --- knowing that now $250,000 will be completely protected.

Just a reminder that the basic insurance coverage for other deposit accounts remains at $100,000 per depositor. However, as before, there are ways to qualify for more than the basic coverage. For example, a checking account that has just your name alone is insured to $100,000 separately from your share of any checking account held jointly with another person.

For more information on this topic, you may visit the FDIC website. www.fdic.gov