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In 1974, FDIC insurance backed up to $100,000, or almost three median new houses sold that year. Now, it is $250,000, or just a little over half the median pric
by mouse_ 4y ago
In 1974, FDIC insurance backed up to $100,000, or almost three median new houses sold that year. Now, it is $250,000, or just a little over half the median price of a new home. https://fred.stlouisfed.org/series/MSPNHSUS https://fred.stlouisfed.org/series/MSPNHSUS
The value of that insurance has gone down significantly over time because of inflation.
- webkike 4y agoThat does not actually indicate anything about the insurance limit not matching inflation because housing prices are not necessarily flat. In fact they are not. However, the fdic insurance limit is indeed worth less now, but most people don’t even have $5,000 in the bank. The mean bank account balance is $40,000 according to a quick Google search.
- babypuncher 4y agoThis is all true, however I don't think very many people keep $100,000, let alone $250,000 in their bank account. There are far more lucrative places to park your money.