FDIC Mulls 100% Guarantee

Remember the temporary increase in FDIC insurance coverage? You may see even higher coverage.

The Wall Street Journal reports that the FDIC may insure a lot more than $250,000. They expect the FDIC to

"temporarily lift the insurance limits for non-interest bearing bank deposit accounts. This would extend beyond the $250,000 limit per depositor that lawmakers agreed on two weeks ago".

It sounds like they will guarantee all of your money. The hitch might be the part about "non-interest bearing bank deposit accounts" - so CDs and savings accounts may not enjoy the guarantee. If you just need a safe place to stash lots of cash, it sounds like a basic free checking account is your best bet. Stay tuned for details on the increased FDIC limits.

Further reading:

• WSJ on FDIC Limit Increase
• How FDIC Insurance Works
• Maximizing FDIC Coverage