Sunday, March 05, 2006

New FDIC Limits on Retirement Accounts in 2006

Thanks to the Federal Budget Bill signed into law last month, using bank accounts will become more attractive for storing large sums of money.

"The biggest change: Starting no later than November, depositors will get as much as $250,000 in insurance coverage for retirement accounts. The amount covered in other accounts will stay at $100,000."

"The law also would allow the coverage limits for other types of deposit accounts to increase in $10,000 increments, starting in 2010, depending on inflation."

The above comments are taken from Kathy Kristof's article in the Hartford Courant on March 3, 2006. Her article is titled: "Saving to Retire? Bank Option Gets Better - Higher FDIC Insurance Limits Could be Attractive to Retiring Boomers... "

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