With everything happening in today’s economy, people have many questions about whether their money is safe in such banks as Bank of America, Washington Mutual, Union Bank, and many other banks in San Diego. The recent failures of IndyMac, Freddie Mac, and the insurance giant AIG has caused many bank depositors to ask about the protections of an FDIC insured institution.
The FDIC (Federal Deposit Insurance Corporation) was established 75 years ago. All deposits worth $100,000 or less are automatically insured by the FDIC if the bank in which the funds are deposited are insured with the FDIC. Many retirement accounts such as 401(k)s and IRAs are insured up to $250,000 per person. If you have a joint account with someone else, that account is insured separately from the account you have in your name alone. In addition, trust accounts may be protected up to $100,000 per beneficiary.
The FDIC has nearly $53 billion in funds and in the 75 years since its creation, there has never been a bank depositor lose a penny. You can learn more about bank failures at the