|
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.
|
Winter 2003/2004
A Final Exam
7. Sorry, that is incorrect.
The correct answer is "True."
Payable-on-death (POD) accounts and other revocable trust accounts at a bank are insured up to $100,000 for each "qualifying beneficiary," which is defined as the depositor's spouse, child, grandchild, parent or sibling. Using our example, if you establish a POD account naming your two children as beneficiaries it would be insured up to $200,000. Under the FDIC's rules, other beneficiaries, including in-laws, cousins, nieces, nephews, friends and organizations (including charities) do not qualify. The portion payable to a non-qualifying beneficiary would be added to any accounts you have at the bank in the single account category and that total will be insured to $100,000.
"How did you do?"
Back to the Quiz
|
