FDIC Insurance
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 www.TreasuryDirect.gov 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?!!
