How to Insure More than $100,000
The Federal Deposit Insurance Corporation (FDIC) is a government corporation created
after the Great Depression.
As you probably already know, the FDIC will guarantee your bank deposits up to $100,000. Just make sure that your bank is a FDIC-insured
institution: FDIC Bank Find and your account is covered by FDIC insurance. Most
checking, savings, and CD accounts are covered.
It's important to remember that the $100,000 limit is
per bank, not per account. This means that your money will NOT be insured over $100,000 if you have multiple accounts with the same bank. So we can be done to insure more than $100,000?
1. Spread Savings Across Several Banks
Every FDIC member bank will insure your money up to $100,000. Spread that across
10 banks and you'll have up $1,000,000 of FDIC insurance. The only downside is managing
multiple accounts. Online savings accounts make it relatively easy to open multiple
2. Use Different Ownerships
Since the FDIC limit is per individual per bank, multiple owners or different owners
can increase these limits.
An account that has multiple owners can be insured up to $100,000 for each owner.
A two-owner joint account is automatically for up to $200,000. This is an easy way
for married couples to increase their FDIC coverage.
Also, business entities are insured separately up to $100,000 per entity. Just make
sure the account is a business account with ownership filed under the business entity.
2. Invest in an IRA Account
Individual Retirement Account have different FDIC limits than regular accounts. The Federal Deposit Insurance Reform Act of 2005 raised the amount of insurance for an IRA's to $250,000.
2. Private Insurance
When the FDIC limits are not cutting it, there are other options, such as 3rd party
insurance. This more complex and usually requires the help of a financial advisor
and/or investment expert. There are ways to keep your stock market or other investments
safe from bankruptcy. Contact a professional for more information.