Retirement & Financial Planning Report

The so-called bailout bill that was just signed into law raised the Federal Deposit Insurance Corp. (FDIC) insurance ceiling from $100,000 per depositor per bank. Now the upper limit is $250,000, through 2009. Moreover, an extension of the increased coverage to future years is possible.

If your bank fails, the FDIC will cover your accounts (including checking accounts) up to the $250,000 ceiling. Even larger amounts might be covered, too. If you’re married, for example, you and your spouse can each have $250,000 worth of bank accounts in one bank, with full FDIC insurance. You also can have a joint account at the same bank, covered up to $500,000.

If that’s not enough federal deposit insurance, you can open accounts at different banks. At each bank, you’re entitled to $250,000 worth of FDIC coverage per depositor.