FDIC Insurance Limits May Drop

I was doing some research for a guest article today and came across something interesting on the FDIC website here.

100K Limit Will Return Jan 1, 2010

In the fall of last year, as the banking crisis was in full blown hysteria mode, the FDIC raised deposit coverage from $100,000 to $250,00. However that was just a temporary increase.

The limit is set to return to 100K at the end of the year.

I wonder if the FDIC will consider making the 250K limit permanent.

So, what should you do if you are worried about keeping too much cash in one account?

The Solution To FDIC Limits

Well, it’s pretty simple: open more accounts. Spread your cash across different banks in different accounts. Think of it like a ETF account….diversify!

You can check out my list of high yield savings accounts.