Due to pending expiration of the Dodd-Frank Deposit Insurance provision, the FDIC will no longer provide unlimited insurance coverage for noninterest bearing bank accounts as of December 31, 2012. As of January 1, 2013, Insurance limits will revert back to only providing $250,000 of coverage for each ownership category, at each financial institution.
For example, if after the expiration of the Dodd-Frank Deposit Insurance Provision a depositor under the single ownership category has $500,000 deposited in a noninterest-bearing transaction account and $250,000 deposited in a certificate of deposit, or total deposits of $750,000 at a single financial institution, the depositor would be insured for up to $250,000 and uninsured for the remaining balance of $500,000.
For more information about this topic, visit the FDIC’s website. Please give us a call to discuss how this might impact your financial situation.