HOWTO Get Unlimited FDIC Insurance For Your Deposits!

Unlimited FDIC Insurance - HOWTO - moneyconeWhat’s MoneyCone if not for obscure HOWTOs! Here’s one more!

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)

16 thoughts on “HOWTO Get Unlimited FDIC Insurance For Your Deposits!

  1. RT @MoneyCone: HOWTO Get Unlimited FDIC Insurance For Your Deposits!

  2. HOWTO Get Unlimited FDIC Insurance For Your Deposits! #RTW

  3. The problem I see with this is that putting $250,000 in a non-interest bearing account is leaving a LOT on the table. For 2 years, you can probably invest in some VERY safe investments like TIPS and at least get something.

    If you’re deciding between this and leaving cash under your bed, this could work.

  4. This would be one problem I’d love to have. :)
    Our HOA has this problem and I think they had to buy extra insurance or something like that. The unlimited FDIC would be great news for the HOA.

  5. @Daniel: I don’t think anyone should use this as a long term investment. You are right, TIPS is safer and earns interest.

    @rbf: HOAs and businesses that needs to hold short term cash (just before payroll for instance) would greatly benefit

  6. Wow, I never heard of that exception. I’d rather rotate a 1 pile of cash once a year than have multiple separate bank account to track!!!

  7. Interesting. I hadn’t heard about this. If someone is ok with no interest, and is purely interested in protecting cash reserves, this can be useful over the next few years. Two years of keeping funds in one place, vs having funds all over the place, seems more convenient for those who want to do this!

  8. I agree that it would be very useful for accounts like payroll, where you need a large amount of cash until its paid.

    This should also benefit businesses. My best friend is a small business owner, and since the financial crisis, his biggest fear is that his cash won’t be there in the morning.

  9. I would probably go the multiple-bank route and try and get the most interest out of each account I could. Realistically though, I probably wouldn’t have that much ‘cash’ laying around. Right now, I have the gift cards I got from Coinstar, and that is about it. :)

  10. I agree this could be a good thing for the business to stash large amount of cash for cash flow or someone who came into a large amount of cash and need time to figure out what to do with it, but for regular individuals a no interest bearing account might be a deal breaker. On the other hand if I had that much cash in hand I might not need any interest :)

    I didn’t know about this exception. Interesting. Thanks for sharing.

  11. HOWTO Get Unlimited FDIC Insurance For Your Deposits! #RTW

  12. I imagine there must be cases where that would be useful. Regarding keeping your money at multiple banks, you also have to make sure they aren’t really the same bank with different names, and don’t become the same through a merger or acquisition.

  13. @Jackie: Good point!

  14. What a great idea for my piles of money I buried in my backyard…hmm, now where were they again?
    Seriously, great tip for payroll accounts!

  15. It’s an interesting idea, but I still like the multiple bank route to spread the risk around a bit.

  16. Jason @ Second Chance Checking Offers says:

    Keeping your money at multiple banks is always a good idea. Kind of like the “all eggs in one basket” theology. Im sure your money is safe either way but, just sayin…….

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title="" rel=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>