3 ms·

FDIC insurance is low, what, 200K ?

• Clubber 8y ago
  Ya but you can have multiple accounts. I think that circumvents the limit. I think the limit was raised during the Bush administration, but not sure. >The standard deposit insurance amount is $250,000 per depositor, per FDIC-insured bank, per ownership category. https://www.fdic.gov/deposit/deposits/faq.html https://www.fdic.gov/deposit/deposits/faq.html FWIW, I think it should definitely be higher than $250K. Probably $10M or so.
  • deleted 8y ago
    [deleted]
  • TomMarius 8y ago
    In my country, the limit is per natural person, not per bank account. Legal persons don't get it (they get a different one though - because of this, there is a very important distinction between business and personal account).
  • Finnucane 8y ago
    The problem with raising the insurance is that banks pay for it, and the FDIC maintains a fund for paying out claims. If the amount at risk was higher, fees would have to be higher and the FDIC would have to keep an enormous amount of cash on hand. Hell, even at that level, the FDIC was badly stressed during the 2008 crisis. The point of the FDIC anyway is not to protect rich people from all losses, but to prevent runs on banks and promote stability in the system. Most depositors don't have that much money.
    • Clubber 8y ago
      Yes, but since commercial banks and investment banks were allowed to merge after 70 or so years, banks certainly have a lot more income than they used to.
      • Finnucane 8y ago
        True, but still not really the FDIC's mission.