FDIC Home - Federal Deposit Insurance Corporation
FDIC - 75 years
FDIC Home - Federal Deposit Insurance Corporation

 
Skip Site Summary Navigation   Home     Deposit Insurance     Consumer Protection     Industry Analysis     Regulations & Examinations     Asset Sales     News & Events     About FDIC  


Home > Consumer Protection > Consumer News & Information > FDIC Consumer News



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.


Summer 2004

Electronic Payments Surge: How and Why
More consumers conclude that e-checking is cheaper, easier and faster than writing and mailing paper checks

Americans have relied on paper checks as a primary payment method for generations. Yet the latest research from the Federal Reserve System indicates that consumers increasingly are tapping their checking accounts electronically instead of through paper checks.
Merchants Now Process Checks Electronically


After rising for many years, the number of checks paid by financial institutions in the U.S. declined from 49.5 billion in 1995 to 42.5 billion in 2000, according to a 2002 study published by the Fed. In contrast, the number of electronic payments (such as automatic bill paying and Internet banking) and debit card payments combined surged from 18.9 billion to 42.8 billion during the same five years.

While fewer checks are being written in the U.S., the number is still very large. Among the reasons Americans still like paper checks: They're familiar and reliable.

"Consumers generally understand how cash, credit cards, and checks work because we can visually see the process and have control," says Robert Lee, a technology specialist in the FDIC's Division of Supervision and Consumer Protection.

Some people also want to have "something tangible to prove you paid for a purchase or to show the IRS agent," Lee adds.

But electronic payments are growing dramatically as more consumers conclude that transacting business electronically is cheaper, easier and faster than writing and mailing paper checks.

To Learn More About Your Checking Accounts or Making Payments
Example: "Once online bill payment is set up with your bank," Lee says, "you only need to go online, select the vendor to be paid, choose a due date, key in the amount, and click the pay button."

Other popular electronic alternatives include direct payment programs (in which you authorize your bank to automatically pay bills, such as your mortgage or health club dues) and telephone banking (which enables you to pay bills any time using a touch-tone phone).

Previous Story Table of ContentsNext Story

Last Updated 08/26/2004 communications@fdic.gov

Home    Contact Us    Search    Help    SiteMap    Forms
Freedom of Information Act (FOIA) Service Center    Website Policies    USA.gov
FDIC Office of Inspector General