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FDIC Consumer News
Important Update: FDIC Insurance Coverage Increased in Late 2008
In the fall of 2008, Congress temporarily increased the basic FDIC insurance coverage limit from $100,000 to $250,000 through December 31, 2009. In addition, the FDIC simplified the rules for the calculation of deposit insurance coverage for revocable trust deposits, including an expanded definition of the "eligible beneficiaries" for additional insurance coverage. As a result, certain previously published information related to FDIC insurance may not reflect the current insurance coverage. For more information, go to www.fdic.gov/deposit/deposits/index.html or call toll-free 1-877-ASK-FDIC (1-877-275-3342) Monday through Friday, 8:00 a.m. to 8:00 p.m., Eastern Time. For the hearing-impaired, the number is 1-800-925-4618.
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Special 10th Anniversary Edition - Fall 2003
Minimum Payments, Maximum Costs on Credit Cards
While it might appear to be a good deal to pay only the minimum amount due on your credit card's outstanding balance each month and keep the extra cash for other bills, this could be one of the worst financial moves you can make. Why? It will take you a very long time to pay off the balance, and the interest costs (often quite high on credit cards) can be shocking. Example: If you pay only the minimum due, a $500 television would cost you more than $900 (including interest costs) and require eight years of payments.
So pay as much as you can on your charge card each month — pay the entire balance, if possible — to avoid interest charges. If all you can afford is the minimum amount, pay that... and pay it on time to avoid a late fee and other potential problems.
While it takes discipline to pay most or all of your credit card bill each month, the sooner you pay off your balance, the less you pay in interest and the more you have available to save for a home, college education, retirement, or something else that truly benefits you.
Excerpted from "Minimum Payments, Maximum Costs on Credit Cards," Summer 2003.
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