FDIC COVERAGE OF IRA CD’s
Our banking system is in turmoil and upheaval and apparently no government or financial leaders are sure of what actions to take. The FDIC announced that their insurance funds are very low. Should more bank failures occur and the FDIC run out of insurance money, would owners of IRA CD’s be at risk of losing their money?
Permalink Submitted by Jose Morales on Mon, 2009-03-09 15:54
If you are simply wondering what the FDIC insurance coverage is for IRA accounts and certain other individual retirement accounts, it is $250,000.
Permalink Submitted by Alan Spross on Mon, 2009-03-09 17:05
Despite growing public disgust at the continuing bailouts, the govt backing of FDIC funds is almost guaranteed. The FDIC was formed in 1933 and is probably the only Depression stopgap measure that is universally considered to have been a positive. The alternative to govt backing would be a chaotic run on the banks and everyone knows that. So I would not worry about this. The IRA limit of 250,000 is also permanent, not one of the temporary measures that must be extended periodically.