KEEPING BANK ACCOUNTS WITHIN INSURANCE LIMITS
The recent economic crisis has weakened the entire financial structure of this country. With this weakening came many bank failures. Smaller banks either ceased to exist or were bought out by larger institutions. Fortunately, the FDIC protects the population from a crisis equal to the banking fiasco of the Great Depression. However, there are some limitations for federal insurance.
In addition to reviewing accounts for insurance limit purposes, it’s a good idea to consider the accounts in respect to an overall portfolio. By doing this, it’s easier to determine whether the money is allocated well against stocks, investments or bonds. If this is too difficult to do independently, contact a financial planner for assistance.
Non-retirement account limits for federal insurance are currently $100,000. Limits for individual retirement accounts are higher. While the limit was $100,000 in previous years, it’s currently $250,000 per institution for certain retirement accounts. This limit is applicable to Roth and traditional IRAs, savings incentive match plans for employees and Simplified Employee Pension. Keogh, 401(k) and some other self-directed contribution plans are also included. If retirement accounts are held at the same institution, their amounts are added together, totaled and applied toward the $250,000 limit. Accounts held by different institutions don’t have to be added up together to apply toward the limit amount. Other forms of deposits at the same financial institution don’t apply toward a retirement account. For example, if an individual has a CD and IRA at the same institution, only the IRA will apply toward the $250,000 limit.
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20 Technology Dr, Ste 4
PO Box 1260
Brattleboro, VT 05302
tel: 802-257-9500
email: ddboyd@campbell-boyd.com
“Robert Fagge (at Campbell & Boyd) has been a financial advisor to me and my wife for quite some years. Although our investment account is not large, he has been attentive and helpful in all ways. He recently gave us excellent advice regarding our account/s In light of the current national Debt Crisis and saved our assets by prudent and active management. Through the years, I have recommended Robert and his services to several others who have sizable investable funds of their own” – JBS, Wilmington, VT
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