This BLOG is for the use of Century Village residents and those interested in Condominium issues of concern to them. Any user may ask a question or provide information that they feel is of value to the BLOG users. No reasonable subject is "Off Limits", No one is banned, and No rational opinion is supressed.
Wednesday, July 16, 2008
Bank Failures
If a bank fails ,what happens to a persons brokerage acct. ,if they have that with the bank also?
The Bank FDIC covers up to $ 100,000.00 per account with $ 250,000.00 for IRA accounts.
Brokerages carry SPIC Insurance which typically covers $ 500,000.00, although some Companies carry more insurance that that.
CD’s that you obtain through your broker, at one time, permitted FDIC coverage, in some instances, however, especially higher yielding certificates were in some cases exempted from FDIC coverage and this should have been discussed prior to your investing any money. Ask for clarification if the SPIC covers such CDs.
MAKE certain, look at your statement and if the question persists, CALL the company, request the mail data on what coverage they provide.
Now is the time to reevaluate and make certain you are protected. Typically any amount over the $ 100,000.00 will provide for a recovery of only $ .50 per dollar over that stated limit.
A difficult question to answer!
ReplyDeleteThe Bank FDIC covers up to $ 100,000.00 per account with $ 250,000.00 for IRA accounts.
Brokerages carry SPIC Insurance which typically covers $ 500,000.00, although some Companies carry more insurance that that.
CD’s that you obtain through your broker, at one time, permitted FDIC coverage, in some instances, however, especially higher yielding certificates were in some cases exempted from FDIC coverage and this should have been discussed prior to your investing any money. Ask for clarification if the SPIC covers such CDs.
MAKE certain, look at your statement and if the question persists, CALL the company, request the mail data on what coverage they provide.
Now is the time to reevaluate and make certain you are protected. Typically any amount over the $ 100,000.00 will provide for a recovery of only $ .50 per dollar over that stated limit.
Please take care.
Ed
Thanks Ed,
ReplyDelete