The FDIC Insurance limits have experienced a major increase as part of Congress’ economic bailout package.  The FDIC insurance limits have been increased to $250,000 per depositor.  For decades the limits were at $150,000.

Why Did Congress Increase the FDIC Insurance Limit?

The FDIC insurance limit increase is designed to give depositors confidence that their money will be safe in these tough financial times.  There was concern that people were taking their money out of banks for fear that the bank would fail and they would lose their money.

What are the New FDIC Insurance Limits?

As mentioned above the individual depositor limit has been increased to $250,000.  Additionally, since the limit is per depositor, if you have a joint bank account, the FDIC insurance limit will be $500,000.  But, it is important for people to know that this increase is temporary.  The current legislation expires in December 2009 at which time the limits will go back to $150,000.  Only time will tell if Congress extends or make these new FDIC insurance limits permanent.