More Money Blog

With the recent turmoil in financial stocks and a number of banks going completely under, it is extremely important to be sure that your money is safe. If your bank were to fail and were taken over by the FDIC tomorrow, do you know what would happen to your money?

Here are the simple facts about FDIC insurance:

• The FDIC insures up to $100,000 per depositor for checking and savings accounts.
• The FDIC also insures IRA accounts up to $250,000 per depositor
• You can spread your money around with different banks to increase your amount of FDIC insurance.

Your bank must be a member of the FDIC to receive this insurance. Search your banks website, or contact them if you are unsure about this. Brokerage accounts held at places such as Fidelity, Charles Schwab, Scottrade, and others often don’t provide FDIC insurance. These accounts are usually insured by SIPIC (http://www.sipc.org/), but have similar guarantees. Be sure to thoroughly read and understand the insurance information on brokerage accounts before depositing any money.