Salary of a 21 yr-old bellhop at the Shangri-La hotel: $274/month Cost of one night at the Shangri-La hotel: from $255 Average annual salary in India: $1,000 Cell phone service: $2/month One liter of milk: $0.40 Loaf of bread: $0.20 Cost of a 2-yr MBA program: $6,000 to $10,000
I continue to see somewhat misleading wording about FDIC insurance in media everywhere: newspapers, magazines, TV, web sites, and it really really bugs me. Compare what typical newspapers and TV news state: “the FDIC insures bank accounts up to $100,000” with what FDIC’s own signage says: “Each depositor insured to at least $100,000″ (emphasis mine). See the difference?
As I pointed out in my last article, it’s relatively easy to structure accounts so that an individual is insured by the FDIC for one or more accounts totalling over $100,000 at a single bank.
I’m begging everyone in the media. All you have to do is make one minor change when you’re talking about how FDIC insurance works. Please stop fanning the flame! There’s enough panic as it is without you fueling the fire!
After IndyMac Bank was shut down on Friday, I’ve heard and read a lot of misinformation about FDIC insurance. Everyone means well but nobody seems to want to spend the time getting their info right. The most basic premise behind FDIC insurance is that you’re insured for up to $100,000 per insured bank. There are circumstances in which individuals can be insured for over $100,000, and if you have that much money in the bank, you owe it to yourself to know the FDIC rules, especially if you’re panicking over IndyMac’s failure.
Here’s my attempt at flowcharting how FDIC insurance works. This is a simplication of the most common FDIC rules. If you have any questions or doubts about any of this information, you should contact the FDIC.