FDIC Coverage Above $100,000

By now, most people have been reminded that FDIC insurance only covers up to $100,000 per depositor. Recent bank failures and long lines at IndyMac thrust the topic into the headlines.

The $100,000 limit can be confusing. FDIC insurance may actually cover more than $100,000 of your money at a given bank if your accounts are structured properly. One way to do this is with revocable trust accounts.

Bank Deals explains some of the basics, and has testimonials from IndyMac Bank customers who took benefited from the revocable trust rules. While the funds were insured, the customer writes

"I will make it a point to never deposit over the $100K limit again. It isn't worth the aggravation".

There's a difference between having your money available, and having it insured. To get certain funds released, the FDIC has to do some research.

Further reading:

• How FDIC Insurance Works