Currently your deposits are insured upto $250,000. What if you have more cash to spare? Yep, a big problem for most Americans!
For each $250,000 cash, deposit in a different bank and extend your coverage ad infinitum…
Or you could use your favorite bank and get unlimited coverage, no matter how much your deposit is. Here’s how:
- Keep your cash ready and wait till the end of this year
- Lookout for an announcement from your bank on a new non-interest bearing checking account that’ll carry unlimited FDIC insurance
- Sign up for this account and stash your cash!
- Be sure to take your cash out by end of 2012
No it’s not Johnnie inside me talking! That’s the announcement the Feds made recently, courtesy of the Dodd-Frank bill.
A new non interest bearing checking account that’ll provide temporary, but unlimited coverage for a period of two years.
This could be a boon for businesses holding short term cash meant for distribution like Payroll and Accounts Payable. More details here (warning – pdf)