On a day like today, our thoughts may turn to the FDIC. Just how does that insurance of our bank accounts work?
Fumar's post in this thread pretty well sums up the basics. That $100,000 thing. Interest on an initial $100,000 deposit will take it over the insured amount.
Something that has changed in the last couple of years is the FDIC insurance for IRA's. That has been increased to $250,000. But that is only for IRA's invested in bank deposits, such as CD's. Not on other investments that may be through the bank. Be clear on that one if it applies. Be clear on all of this if it applies. And be clear in understanding that I am not a financial expert or advisor in any way, shape, or form. I just like to know this stuff. Sometimes I feel like that's a curse. But, oh well. I digress. (That's a curse, too.)
Anyway, here is a link to "Money Girl's Quick and Dirty Tips for a Richer Life." This one is about FDIC insurance of bank accounts. If you click on the tab that says "About Money Girl" you will see that she probably knows her stuff and interestingly, she lives in Central Florida.
I sure like the way she explains this.
But even though Money Girl seems to know what she is talking about, she always says to get professional advice and that her stuff is for the purpose of education only. Got that? Don't listen to Money Girl. (And don't listen to Boomer.) -- for professional financial advice. Just maybe read this if you are interested in seeing what she has to say, for the purpose of education.
So here's your link to "Money Girl" in case you like to know about this stuff, too.
http://moneygirl.quickanddirtytips.c...questions.aspx
You know, we have met the FDIC. And it is us. What a mess, huh.
Boomer