Trick to Getting FDIC Insured Over $100K

Crash and Burn Part 6. Lets see: There was the Space Shuttle explosion, Katrina, 9/11, 600,000 dead Iraqis, $4 trillion in new debt, illegal spying and wiretapping, the sub-prime implosion, 3 Secretaries of the Treasury, a mental midget named Bernanke, the impending attack on Iran and the looming defaults at GMAC, Amtrust, Freddie Mac&Mae and 50 other banks.
It’s a shame George Bush can’t run for a third term there must be something else left to destroy in America that he hasn’t gotten to you.

To the one who blames IndyMac and all else on George Bush: You are fatuous and uneducated. These kinds of things happen over time spans far longer than one President’s administration. Fiat currency, in particular, is destroying the USA, and President Bush had NOTHING to do with that. Wake up, get real and get some understanding of how things work.

Dear Elliot: What Delusional Denomination do you belong to? I don’t disagree that this problem winds its way back through the policies of Alan Greenspan, the still to be understood effects of globalization, every bank in the US’s payoffs to Chris Dodd to promote deregulation, Wall Streets pay offs to the DNC and RNC to put their interests before those of the American people and finally, the Clinton administrations cooperation with every bad lobbyist’s desires.
Having said all that, are you suggesting to me that after 3 Secretaries of the Treasury, the most current one being nothing but a Lobbyist for his own industry and the most incompetent and corrupt administration in perhaps the country’s history that you lay none of the blame with George Bush? That nothing could have been to forestall this crises over the last 7 years? That just like 9/11, Katrina and everything else that George Bush’s fundamental incompetence, arrogance and stupidity are not to be blamed? Are you saying that for $2 Trilliion a year we can’t expect better from our elected (And in Bush’s case probably illegally elected) government? I think it’s you who has no idea of how things work and in this case, don’t work.

Bush and these dumb bankers had a lot to do with this.
Bush for is illegal Iraqi war and bankers for making bad loans and packaging them and reselling them.
MORE to the point, you get 100k insurance PER qualified relative on your POD accounts.
So you cna get several hundred thousand dollars of FDIC insurance.

The Fed was very wrong to lower interest rates from above 5% down to 2%. This has cheapened the value of the dollar and has contributed to INFLATION running wild!! Interest rates need to go up, up, up!!!
Even when it was above 5% a year ago, it was historically low!

the example given is wrong. you can not open an individual acct with 100k and a joint acct with 200k. the individual owners of the joint acct split the total 50-50%. therefore the indiviual acct counts as 100k and the joint counts as 100k for the same person….totaling 200k…FDIC only insures 100k. you are underinsured by 100k.

Tony:
The link that you posted lists the 8 different types of ownership categories which can each be insured for $100K. The link is for the joint ownership. However, you can have multiple ownership categories which allow someone to get more that $100K in FDIC insurance. Someone would use this when a bank is providing a great rate on a CD. A married couple could each take one accpunts as single ownerships for $100K each and then take out a joint account with their spouse for $200K and be fully FDIC insured as a couple for $400K.

I am always amazed at people like Bob who hates Bush so much he sounds like a popinjay.I truly recommend he go back to school and learn Ameican History and forget about the left wing garbage.Hint,Bob there are THREE governing parts Executive, Congress, and Judicial.I don’t have room to give you a101 history lesson.Recommend going to the library and do some reading.

In order to be clean on the FDIC insurance; it’s an ez call for clarification.

You can have 400K coverage for a couple simply by listing one spouse as subserviant on a joint account, and the the other.

Depending upon the number of immdiate family members you have, you can use a simple statistical model for coverage.
Fro ex: - 4 in a family = 1st spouse w/ 5 variances on an insured CD
= 2nd spouse w/ the same

If you need more than $1million in insured CD’s, post me; there are additional configurations that the FDIC has approve for me personally.

hope this helps,

When will they increase the 100K to a bigger number? It seems with inflation and years it isn’t enough anymore.

John,
Where have you seen that? I’ve confirmed that you get $100k from all your combined individual accounts, and then another $100k from all your combined shares of your joint accounts.

The way FDIC insurance works is not communicated very well by the FDIC, and is only made worse by the media. Here is what you want to know:

There are three ownership categories used for FDIC insurance. 1) Individual ownership, 2) Joint Ownership, and 3) Trust ownership, such as a POD ownership. Each of these categories is covered by the FDIC completely separately from each other. Again, it doesn’t matter how much insurance you have as an (for example) an individual, you get entirely new insurance coverage for your joint accounts.

1) Individual ownership - this is the easiest category. You are insured up to $100,000 in an individual ownership at any given institution. You have $100,000 total for all accounts combined together at one institution where your name is the only name authorized to withdraw from the account. (i.e. if you have three accounts at Bank of America where only you can withdraw, and the balance of those three accounts combined is $120,000, only $100,000 is covered)

2) Joint ownership - If your name appears as owner on an account with another name appearing as owner, you get $100,000 per owner. Hence, if you have two owners listed on an account, you have $200,000 of insurance coverage at one institution. For example, if you own 3 joint accounts at WaMu with your spouse totaling $300,000, only $200,000 is covered. You have also maxed out all joint ownership coverage in your name, meaning that even if you opened 1 new account with your brother totaling $200,000, your half of the account would not be covered by the FDIC.

3)Trust accounts - An account that has what the FDIC considers a trust ownership is insured using this formula: number of trustees (for simplicity’s sake we can consider the trustee an owner of the account) times the number of beneficiaries times $100,000. Keep in mind that your beneficiaries must be blood relatives to qualify for FDIC insurance (i.e. no corporations or really good friends qualify for FDIC insurance purposes.). Thus, if a mother and father open a trust account for $700,000 at Wells Fargo and name their three children as beneficiaries, their deposit is insured to $600,000, leaving $100,000 uninsured.

I use this information every day in my job at a bank to educate my customers on making sure their deposits are insured to the maximum amount. I utilize a brochure from the FDIC called “Are you covered?” last updated in January 2007.

Insurance coverage from the FDIC can be very complex to figure out, and I hope I have expressed it clearly. Ask your banker about it if you have other questions. You would certainly hope that they would understand how it works since it is a pretty major concern to their depositors!

Wachovia here in Texas is offering 4.25 CD…says it is good thru Friday, July 18th (TODAY).

If you have over $100,000, there are better ways to invest it than a bank account. If you do want to put more than $100,000 in bank accounts, spread it between different banks. Even with FDIC insurance, it can take some time to get the money, so it is best to have some money at another bank in case you need money in a hurry at the same time as your primary bank goes under.

Well, according to the FDIC website, it’ll only take up to 24-48 hrs for fdic to transfer the money to the new bank. During that time, you can use your credit cards.

Bob, George Bush isn’t responsible for the mortgage industry going belly up. And, keep in mind we have had a democratic controlled House and Senate since 2005. Also, it is President Clinton that signed the NAFTA Bill which allowed for manufacturing to take advantage of outsourcing. In addition, keep in mind that whatever money anyone does manage to hold onto, it is Barrack Obama who would like to tax the rich more and give to the poor. Thank god for the rich. How many poor people do you see giving money to charity, donating money to hospitals or other philanthropic organizations, and how many poor people create jobs for others. This country is still the land of opportunity and if individuals are going to be penalized for success then welcome to the world where no one cares if they get up and go to work anyway because it is all going to be given away to lazy asses.

Create 5 Nevada LLCs for $300 a piece, it takes one day.

Get 5 Taxpayer ID numbers from IRS ( not using your own social security number, do not be so dumb) there are services that charge $75 for each. Walk to your favorite “penny stock bank ” with highest yields on the national market place and stuff $100,000 in each LLCs. That’s $500,000 FDIC insured accounts which you now control. Perfectly legitimate, sound, bullet proof, protected from personal predators/creditors and snooping eyes.

That was easy…

Leslie in reference to your comment:
“Barrack Obama who would like to tax the rich more and give to the poor. Thank god for the rich. How many poor people do you see giving money to charity, donating money to hospitals or other philanthropic organizations, and how many poor people create jobs for others.”
It is greatly flawed. Do you know what it is like to be poor? OF COURSE poor people dont donate to charity it’s the furthest thing from their mind for OBVIOUS reasons. Would you choose to feed your family or donate?

I do appreciate your view of social responsibility accompanying wealth. Things would be much better if everyone shared that view.
But I think you are missing the far greater picture: Poor or rich, anyone can make the world a better place if they try. Unfortunately both can do the opposite as well.
The important thing is that someone with money earnetly tries to use it to make the world a better place. Not just to get a tax write off, improve their image in social circles, and to sleep better at night.

Almost forgot, Bob, you are indeed wrong about Bush. We brought it on, mission is accomplished, Brownie and W did a fine job with Katrina, torture is cool, habeas corpus is so yesterday, Valerie Plame wasn’t all that covert anyway, Alberto Gonzalez was the bomb, the Iraq war is a splendid plan with or with or without WMD or a connection to 9/11, it’s no big deal Bin Laden is still on the loose, national debt is good, helps us build credit with TRW, budget deficit, not so much, but hey, we all get our finances a little out of whack from time to time, devaluation and inflation is also good, makes us remember where we came from, builds character. So Bob, please stop being so anti-American. Put on a flag pin, same some prayers and rid yourself of the mythical concept of accountability. Accountability is so passe….

In reference to Mike’s comment don’t even take the word of the bank rep. I was told I was insured but was not due to my daughter being a beneficiary not a card signer….make sure all sign on the card for each 100K in bank…or have it in an IRA account..

What took place over the last 8 years is called “Government Failure”, this meaning simply explains itself. Congress should have never approved the use of arm loans. Banks and congress got greedy and look what happened.

Kris.. to blame Clinton, who inherited a government in record debt and left it with a record surplus almost 8 years ago, is to say that Bush is truly incompetent if, in his 8 years of stewardship he was incapable of correcting the problems you believe were left to him by Clinton. Its just like you Bush backers to blame his incompetence on anyone but him. No matter how you try to sugar coat it, your man Bush has been a complete failure, complete and utter failure. Just suck it up and admit it. Unrelated but quick question..can anyone post a link to a picture of the plane that hit the pentagon? an acutal picture, there must be hundreds of cameras that monitor the pentagon 24/7.. I’m just looking for 1 picture of that plane, how difficult could that be? I mean, that building belongs to the taxpaying citizens of this country, right? it belongs to us, dosen’t it? One of the countrys most recognizable buildings, celebrated on postcards and in textbooks for decades, the building itself is hardly top secret. So I ask, what national security is at risk by letting us see that fatal impact? The truth is out there, I shutter to think how we will deal with it.

It’s just best to have acccounts at multiple locations

Good Info!

I had approx $140 in a CD. It was titled in my name with one grandson listed as beneficiary. I was so careless to allow that sum to remain in one account in one bank but I thought the titling would be safe. Be that as it may let me tell you all what happened. On the Friday when the bank closed I heard about it on the radio. I was scared spitless and immediately phoned the bank to get the complete story. I was told by a young man who worked at the bank and answered my call that I had nothing to worry about if the CD was titled in that way —that each name (mine plus my grandson’s) was insured up to $100K. He said just get a good weekend’s rest. He took my contact information and told me an agent from FDIC would phone me next week. The agent did call and then laid the terrible news at my feet. He stated FDIC insured only relationships. He said the relationship between me and my grandson was only one relationship and would be covered to $100K. He stated if I had listed another beneficiary as well then that relationship would be a different one and would then be insured to another $100K. So my loss would be $41K. He then stated FDIC declared a 50% dividend on IndyMac accounts which meant I would be given 50% of my uninsured amount. In the end, I did receive $120K and lost $20. He told me that this was the 4th largest bank in the US with many branches and that when and if any of its assets were sold, I would be among the first to receive my remaining savings.
I see bailouts all over the place to hugh institutions but I see absolutely NOTHING happening with the assets of IndyMac Federal. I doubt I will ever see any of my lost funds. I had taken out that CD only 3 weeks before the bank closed. What a shock. Sure taught this senior to be more aware and less trusting.

Bob, You are a very ignorant and angry individual. The sub-prime mortgage crisis is not Bush’s fault nor the Republicans fault. The idea that “Everyone deserves to own a home” (even those that can’t afford it) is not a Republican idea or ideal, it’s that of the Democrats/Liberals like yourself. That along with corporate greed and what should be considered outright illegal behavior on the part of CEOs has brought this mess upon us. Until this machine that is the US economy learns how to police itself this type of thing will happen again and again.