May 20th, 2009
The US Congress and Senate passed legislation to extend the $250,000 FDIC insurance limit through 2013. We have been watching for this and saw it reported in the WSJ today. It won’t be law until President Obama signs the bill. His signature is expected in the next few days.
This will help many banks who would face losing deposits as the current deadline loomed. Many of our clients had already allowed CDs to mature and be transferred elsewhere over the last couple of months in order to keep their deposits under the original $100,000 limit.
As long as the extension is signed, the extra 4-years will be very helpful, especially for personal investors utilizing POD (Payable-On-Death) / ITF (In-Trust-For) accounts or Revocable Trusts. Who knows, maybe as the health of the banking sector improves, they’ll make it permanent.
We will send out a post as soon as we know President Obama has signed the extension.
-- By +Chris Duncan