Bank Deal: Earn 1.00% APY on an FDIC-insured savings account at Barclays Bank.
On Saturday morning, I read that the number of bank failures in 2010 had climbed to 108. For the sake of comparison, “just” 69 had failed at this point last year, and bank failures peaked at 12 in 2002 as a result of our last recession.
As you’re likely aware, FDIC insurance limits were increased from $100k to $250k per depositor per institution back in 2008. This increase was set to expire at the end of 2013, but it was made permanent with the recent passage of the financial reform bill.
The same goes for NCUA insurance coverage, which was likewise scheduled to fall back to the original $100k limit at the end of 2013. For those that are unaware, the NCUA is much like the FDIC, except that it protects credit union deposits.
Looking at the history of FDIC insurance limits, it seems perfectly reasonable to make the change permanent. After all, the limit has been at $100k ever since 1980. Accounting for inflation, that was the equivalent to $261,934 in 2008 dollars.
From the outside, virtually nothing will change. You’ll just no longer have to worry about the safety of your savings account, CDs, etc. come 2013 if your combined balance at a single bank is somewhere between $100k-$250k.
- How to Become a Millionaire
- How to Get Out of Debt
- The Best Dollars I've Ever Spent
- How Our Estate Plan is Structured
- How We Paid Our Mortgage In Less than 10 Years
- Money Making Ideas
- How to Manage Your Asset Allocation with Multiple Accounts
- Consumption Smoothing - Save While the Saving's Good
- How to Save on Groceries
- How Much Life Insurance Do You Need?
- Eleven Great Books About Money
- Dave Ramsey is Bad at Math (692)
- Dish Network Customer Service SUCKS (534)
- $8,000 Homebuyer Tax Credit (429)
- Pay Off Mortgage Early or Invest? (424)
- How to Claim the First-Time Homebuyer Tax Credit (352)
- Termite Control: Sentricon vs. Termidor (325)
- How Much Should You Pay a Babysitter? (284)
- Ethanol Blended Gas = Lower Mileage? (272)
- Reduced Credit Limits? Share Your Experience (256)
- $15,000 Homebuyer Tax Credit (242)
- Buying Furniture off the Back of a Truck (228)
- Will Mac OS X Lion Kill Quicken 2007? (191)