FDIC Seeks To Raise Deposit Insurance Limits

fdic

The FDIC (Federal Deposit Insurance Corporation), the organization that protects the money in your bank accounts, is currently seeking to raise the limit on the amount of money that will be protected in the event of a bank failure from $100,000.  Shelia Blair, Chairman of the FDIC, did not specify an amount she would like to see it raised to.  Instead, the amount of the increase, if any, will be determined.  The $100,000 figure was set in 1980, and beginning in 2011, it will increase annually to account for inflation.  This change was passed in 2005 by Congress.

With the public failures of both Washington Mutual (Thursday) and Wachovia (Monday), many people are looking at this on a more speculative level.  While many people don’t carry nearly $100,000 in their bank accounts, many busiensses do.  It is estimated that in 1991, 82% of deposits were protected while today only 63% of deposits are protected. [CNN Money]

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One comment to FDIC Seeks To Raise Deposit Insurance Limits

  • Kate  says:

    I always learn something new when I read here :)

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