[champion6]

Originally Posted by Golfer222

Does adding a beneficiary to a savings account double the FDIC limit to 500,000

Shouldn't you contact the institution where the savings account was opened? Really - nobody in the forum will stand up for you if needed.

[Golfer222]

The usual "why ask here" comment came a little late than I expected. you are slipping

[dewilson58]

Originally Posted by Golfer222

The usual "why ask here" comment came a little late than I expected. you are slipping

I wanted to give someone else a chance.



It's an excellent post.

[midiwiz]

Originally Posted by Golfer222

Does adding a beneficiary to a savings acount double the FDIC limit to 500,000

I'll try to not be snarky on this one...... dificult but ok...

FDIC doesn't insure based on account holders it insures based on account/person relationship UP TO 250,000 meaning

John has 5 accounts, 1 checking and 4 savings "type" of accounts (MM, CD, etc) John has an ACCUMULATED balance of $325,000. John is only covered for $250,000 of that $325,000.

[Craftylady]

The account has to be I trust for a “qualifying “beneficiary. Each single acct $250,000 Each joint acct $125,000 for each acct holder. Owner plus qualifying beneficiary $250,000 more money than that use more than one bank

[dewilson58]

Originally Posted by midiwiz

I'll try to not be snarky on this one...... dificult but ok...

FDIC doesn't insure based on account holders it insures based on account/person relationship UP TO 250,000 meaning

John has 5 accounts, 1 checking and 4 savings "type" of accounts (MM, CD, etc) John has an ACCUMULATED balance of $325,000. John is only covered for $250,000 of that $325,000.

Great job on not being snarky.
Bad job on answering the question.

[gmdds]

You could be covered for several million at one institution….it all depends on how the accounts are set up. See example below:

Account 1…Husband Depositor TOD Grandchild 1
Account 2…Husband Depositor TOD Grandchild 2
Account 3…Husband Depositor TOD Grandchild 3
Account 4…Wife Depositor TOD Grandchild 1
Account 5…Wife Depositor TOD Grandchild 2
Account 6…Wife Depositor TOD Grandchild 3

In the above scenario, each account is covered for up to $250,000, for a total of $1.5M in FDIC coverage.

The scenario could go on and on, depending on the different accounts set up variations, beneficiaries, etc.

The FDIC has an online worksheet/wizard, to help you see if you are covered.

[Bill14564]

Originally Posted by dewilson58

I wanted to give someone else a chance.



It's an excellent post.

Still, it was an interesting question and useful to do the research and learn the different scenarios. Why some choose to ignore the previous replies and FDIC information in order to post incorrect information continues to be a mystery to me.

[dewilson58]

Originally Posted by Bill14564

Why some choose to ignore the previous replies .......................in order to post incorrect information continues to be a mystery to me.

This would be an excellent new thread.

[retiredguy123]

Originally Posted by Craftylady

The account has to be I trust for a “qualifying “beneficiary. Each single acct $250,000 Each joint acct $125,000 for each acct holder. Owner plus qualifying beneficiary $250,000 more money than that use more than one bank

Note that you don't need to set up a formal trust. You can create an informal trust just by designating a "payable on death" beneficiary or multiple beneficiaries on the bank's signature card. A charity can be a beneficiary.

[Morty S]

You can have several accounts at the same bank, just keep them all under 250,000.

[nn0wheremann]

Originally Posted by Golfer222

Does adding a beneficiary to a savings acount double the FDIC limit to 500,000

No.

[Whitley]

Originally Posted by Golfer222

Does adding a beneficiary to a savings acount double the FDIC limit to 500,000

Quick answer, assume not. There is an option to protect your deposit. Look into an ICS (aka Sweep) account. Link it to your main account and choose a target for the prime account (I choose 50k for highly used accounts and 10k for the others). Anything over your target is swept to the ICS account which deposits your cash in various banks, keeping the balance in each under 250,000.00)
A point many may not know, if you have multiple accounts (different bank account numbers) i, let's say Chase, you are not insured up to 250,00. in each. The total accounts are combined (per tax id# or ss#). Another point to keep in mind, Many banks have merged over the past five years (some are BBT, Ameris, Suntrust, Fidelity and many more). If you had 250k in two different banks that have merged, you lost your protection. On the bright side, if this is a concern to you, things can not be that bad.
Have a Happy St Pats Day

[Golfer222]

From FDIC:
Does adding beneficiaries to my account change my FDIC insurance coverage?
You can designate up to six (6) individuals per account as beneficiaries who will each receive equal shares upon the acount holder's passing. Each beneficiary is eligible for up to $250,000 in FDIC coverage per account owner. By setting up beneficiaries on your account, you can increase your FDIC coverage. For example, joint account owners who qualify for $250,000 each in FDIC coverage would increase their coverage to $750,000 each if three beneficiaries are named to their Savings account. You can calculate how adding beneficiaries to your deposit accounts and having accounts in different ownership categories will affect your FDIC coverage by visiting the FDIC's Electronic Deposit Insurance Estimator at FDIC.gov/edie.

[JGibson]

Thanks finally an informative thread, better than talking about dog poop.

It's a good policy to research banks and see what they invest in and who they’re in bed with.

There is a reason a certain somebody pulled money out of certain financial institutions.

I’ll leave it at that or else I’ll get dinged for politics.