Consumer Tip

MIBA Offers Tips to Increase FDIC Insurance Coverage

Liberty, MO (July 18, 2008)—The Missouri Independent Bankers Association (MIBA) wants consumers to take full advantage of Federal Deposit Insurance Corporation insurance and offers the following tips to help depositors increase the amount of money that FDIC insurance will safely cover at a single community bank.

"MIBA has been hearing from people who may be confused about just how much federal deposit insurance covers," said Jerry Sage, MIBA Executive Director. "The basic coverage for deposits in an FDIC-insured community bank is up to $100,000 per depositor and $250,000 per owner for certain retirement accounts, but the FDIC provides separate coverage for deposit accounts held in different categories of ownership that allow a customer to have more than $100,000 insured at the same community bank."

Some basic examples of how depositors can expand their coverage beyond $100,000 include:

• A husband and wife both have separate bank accounts in each of their names (each account is covered for $100,000 or $200,000 total).
• The couple also has a joint account which is covered for up to $200,000.
• The husband and wife each have separate IRA Accounts for $250,000 each.

In addition, revocable Payable on Death (P.O.D.) * accounts are another option that allow a customer to expand beyond $100,000 in the same bank. For example, all of the following accounts could be insured for one couple at one community bank:

• John Doe, P.O.D. to Jane Doe: $100,000
• Jane Doe, P.O.D. to John Doe: $100,000
• John and Jane Doe, P.O.D. to Baby Doe 1, Baby Doe 2, and Baby Doe 3: $600,000
• John and Jane Doe, P.O.D. to Grandchild Doe 1, Grandchild Doe 2, and Grandchild Doe 3: $600,000

"Community bank customers can bank with confidence at their local community bank knowing their money is safe because it is insured by the FDIC and held in well-capitalized and well-regulated institutions," said Sage. "Since the FDIC was founded 75 years ago, no one has ever lost a penny of FDIC-insured funds."

The FDIC is the best source for tools to determine deposit insurance coverage, including an online Electronic Deposit Insurance Estimator, which can be found on the FDIC's website at http://www.fdic.gov/edie/

* This is a brief summary of some of the FDIC deposit insurance rules. Depositors should consult with their legal advisers and with the FDIC website prior to establishing different bank accounts or changing the title of an existing bank account to maximize deposit insurance.