Sarah’s Place

There has been a lot of confusion amongst investors since both the bailout plan and the increased insurance coverage were announced. As you know the government announced that the FDIC insurance limit on bank accounts has been increased from $100,000 to $250,000.

What a lot of people do not realize is that these increases are set to expire at the end of next year unless the government decides to renew the plan. Since this coverage is not guaranteed to be renewed you will want to beware when making purchasing decisions. For example, if you buy a CD with a maturity date past December 31, 2009 in an amount over $100,000, that overage will not be covered unless the government renews the program.

For more information on FDIC limits rules and coverage visit the FDIC web site and take a look at this great article by Gail Liberman and Alan Lavine entitled “Know your CD -Given turmoil at banks, make sure you read fine print on certificates of deposit” This article talks about the fact that CDs may appear to be more complicated now and offers advice to help navigate rough waters. They also discuss the risks and other considerations of some (but not all) types of CDs held at brokerage firms.

For more information please feel free to give us a call at (919)719-7200.

Disclosure

This entry was posted on Saturday, October 18th, 2008 at 9:13 pm and is filed under Market Place. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.