Emergency Economic Stabilization Act of 2008 Temporarily Increases Basic FDIC Insurance Coverage from $100,000 to $250,000 Per Depositor

On Oct. 3, President Bush signed the Emergency Economic Stabilization Act of 2008, which temporarily raises the basic limit on federal deposit insurance coverage from $100,000 to $250,000 per depositor. The temporary increase in deposit insurance coverage became effective upon the President's signature. The legislation provides that the basic deposit insurance limit will return to $100,000 after December 31, 2009.

"This temporary increase in deposit insurance coverage should go far to help consumers maintain confidence in the banking system and the marketplace," said FDIC Chairman Sheila C. Bair. "And clearly the public's confidence is key to a healthy and stable economy."

The FDIC advised insured institutions they should inform depositors that the coverage increase is temporary and effective only until December 31, 2009. The legislation did not increase coverage for retirement accounts; it continues to be $250,000.

For an overview of deposit insurance coverage reflecting the temporary increase, go to
http://www.fdic.gov/news/news/financial/2008/fil08102a.html.

Source: Bernice B. Wilson, Urban Resource Management Specialist, Alabama Cooperative Extension System, (256) 372-4969 or by e-mail at wilsobb@aces.edu,

Posted by dreynold at October 14, 2008 09:53 AM