Adding beneficiaries increases your FDIC

[C50]

Today I learned that you can increase your FDIC limit per account past the typical $250k by adding beneficiaries to the account. Why didnt I know this before? lol

Guess I'm not too old to learn something new.

 

[Rich]

I think it also doubles to $500K if it's a joint account.

 

[Twostep]

The name of the account changes coverage. Please be cautious with this! Small words "and" and "or" have major impacts on ownership and estates. Other account owners receive tax information on income earned and have to report it.

 

[Blessed]

Does that apply to a POD account?

 

[C50]

Does that apply to a POD account?

It does, you can increase the FDIC limit to a maximum of $1,250,000 by adding multible beneficiaries.

Obviously don't trust some radom guy like me on these important issues, consult a professional!

 

[CooCooforCoCoPuffs]

Today I learned that you can increase your FDIC limit per account past the typical $250k by adding beneficiaries to the account. Why didnt I know this before? lol
Guess I'm not too old to learn something new.

Why didn't I know either C50?? That is very cool.
Am going to ask my banker why they never told me?
Not exactly sure of the reasoning of such a policy, either. Very odd.

 

[Twostep]

Why didn't I know either C50?? That is very cool.
Am going to ask my banker why they never told me?
Not exactly sure of the reasoning of such a policy, either. Very odd.

Go to ABA to read up on the law. It is intended to protect those with smaller holdings.

 

[mathjak107]

it has to be one of the forms of trust accounts listed below


As of April 1, 2024, the maximum insurance coverage for a trust owner with five or more beneficiaries is $1,250,000 per owner for all trust accounts (including POD/ITF, revocable, and irrevocable trusts) held at the same bank.

• Depositors can name as many beneficiaries as they wish, however the coverage limit will not exceed $1,250,000 as of April 1, 2024.
• This coverage change applies to both existing and new trust accounts, for all deposit products, including CDs regardless of purchase or maturity date.