Mailbox - Unlimited FDIC Insurance

Hello Eric - I always read your emails.

For your information, there is unlimited FDIC insurance on all checking and non-interest bearing accounts in US banks through December 31, 2012:

On November 9, 2010, the FDIC issued a Final Rule implementing section 343 of the Dodd-Frank Wall Street Reform and Consumer Protection Act that provides for unlimited insurance coverage of noninterest-bearing transaction accounts. Beginning December 31, 2010, through December 31, 2012, all noninterest-bearing transaction accounts are fully insured, regardless of the balance of the account, at all FDIC-insured institutions. The unlimited insurance coverage is available to all depositors, including consumers, businesses, and government entities. This unlimited insurance coverage is separate from, and in addition to, the insurance coverage provided to a depositor’s other deposit accounts held at an FDIC-insured institution.

fdic.gov

I believe that, in the summer or fall of 2010, the US authorities came to the same conclusion you did. Thus, the insurance limit for these accounts has been upped from $250,000.00 to infinity.

Never mind that the FDIC is bankrupt. The Fed will print and cover all deficiencies. What that paper money will be worth is another topic for discussion. But, at least all consumers and business will be able to continue to function when the big banks are officially or un-officially declared to be insolvent.

Regards,

Peter