Ask Terry Questions FDIC Insurance

FDIC Insurance

By Terry Savage on March 07, 2020 | Chicken Money

If my husband and I are on a joint savings account and we have our son as the beneficiary on the account, is the account insured up to $750,000.00? I’ve gotten several different answers. I just want to make sure how the FDCI insurance works. Thanks.

Terry Says

That account would be insured up to $500,000. Technically, your son is NOT a co-owner; he is a beneficiary.
Here is the rule: The standard insurance amount is $250,000 per depositor, per insured bank, for each account ownership category.
BUT – the REAL question is why you would leave that amount — or close to the insured amount –in any one bank??? You can go to and buy 6 month treasury bills directly from the government! That’s the best, safest guarantee you can get — and so the rate is a bit lower. OR, you could split the money between two banks. Why push the limits?!!



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