FDIC insurance protects bank depositors against losses when an insured bank fails. In 2008, in response to the crisis in the banking industry, the standard maximum deposit insurance amount was temporarily increased from $100,000 to $250,000 per depositor, per account. That temporary measure is now permanent.
As part of the Wall Street Reform and Consumer Protection Act signed by President Obama on July 21, 2010, the standard maximum deposit insurance amount is permanently raised to $250,000.
To help both bankers and consumers understand the new law, the FDIC has posted information on its website and provided a toll-free assistance line (1-800-ASK-FDIC).
The issue of the FDIC insurance maximum arises in various situations, including those involving estate planning. For example, check out California Conservatorship Practice §16.11 (Cal CEB 2005).
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