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.
this year california will spend $3.3 billion on its state university system and $9.9 billion on its prison system. l.a. times via the week, 10/19/07
From the 3/14/08 issue of the Week: “A Chinese man is being hailed as a hero for diving into a pond to save a drowning 7-year old boy — 20 years after he jumped into the same pond to save the boy’s father. Wang Weiqing, 58, sprang into action when he saw the child struggling in the water as he walked past. Only when the boy’s grandfather arrived did the two men recall their previous encounter two decades earlier.”
Like father like son? Dad never taught the kid how to swim, or to stay out of the same freaking pond that almost killed him 20 years ago?!
Elliot Spitzer. ’nuff said.
I was looking through a Pottery Barn catalog recently and came across this description for an antiqued something or other: “hand distressing for lots of character.” Am I the only one that thinks there’s something wrong with having factory workers “hand distress” brand new furniture so that people can buy something that looks old?
Average compensation of the ten highest-salaried presidents of U.S. public universities: $533,000
Number of them who earn more than the school’s football coach: 2
Amount that Louisiana State University has raised since 2001 to care for its live tiger mascot: $3,750,000
Source: Harper’s index, March 2008