Merritt Law, P.A.
1800 Second Street
Suite 965
Sarasota FL 34236
941.953.4140
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The information contained on this page is for your information only and it does not constitute legal or financial advice. Should you require such information, contact your financial institution, your financial adviser or your legal adviser. You also can visit the FDIC website and the community banking association website (which were the sources for the information provided), each of which will provide more information regarding such issues.
Of course, you can contact this firm to schedule a consultation regarding asset protection.
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With banks failing and being taken over by the FDIC on a seemingly weekly basis, many people have questions regarding the amount of insurance coverage provided by the FDIC. Generally, FDIC coverage is now $250,000.00 USD per depositor and $250,000.00 per owner for certain kinds of retirement accounts. However, the FDIC offers separate coverage for deposits held in different categories of ownership that can result in a customer having coverage for deposit accounts that are owned in different categories. In those cases, some customers may have more than $250,000.00 USD insured in the same bank.Estimate your FDIC insurance coverage using this link: FDIC Insurance Coverage Calculator.
A husband and wife each has separate bank accounts in each of their names (each account is covered for $250,000.00 USD for a total of $500,000.00 USD).
- The husband and wife also have a joint account that would be covered up to $500,000.00 USD.
- The husband and wife could have separate IRA Accounts with coverage for $500,000.00 USD each.
Revocable payable on death accounts are another type of account that could permit coverage beyond the $250,000.00 USD limit. Some informational examples regarding those accounts follow.
- The account owner is Sam Smith and the account is ownership is listed as P.O.D. to Sally Smith and the coverage could be $500,000.00 USD.
- The account owner is Sally Smith and the account is listed as P.O.D. to John Doe and the coverage could be $500,000.00 USD.
- The account owners are Sam Smith and Sally Smith and the account ownership is further listed as P.O.D. to Baby Smith A, Baby Smith B, and Baby Smith C and the coverage could be $1,250,000.00 USD.
- The account owners are Sam Smith and Sally Smith and the account ownership is further listed as P.O.D. to Grandchild Smith A, Grandchild Smith B, and Grandchild Smith C and the coverage could be $1,250,000 USD.
You can change the beneficiary of a P.O.D. at any time prior to death.
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For those of you interested in finding some information regarding the safety of a bank, follow this link: Bankrate.com's Bank, Thrift, and Credit Union Ratings System. Another rating / screening system for Property / Casualty Insurance Companies, Life Insurance Companies, and Banks and Thrifts can be found by following this link: The Street.com screener for Banks, Property & Casaulty Insurance Companies, and Life Insurance Companies. Merritt Law, P.A. has no relationship of any kind whatsoever with bankrate.com or thestreet.com, and does not in any way attest and represent that the information contained on those sites is correct. The link is provided for your information only and you should discuss any questions that you have with your financial adviser, insurer and/or bank, as appropriate. You should not base any decision that you make solely upon the information that you receive from a single source, but you should fully investigate and explore all of the facts to make an informed decision.
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