The FDIC announced in a press release that deposit insurance has been permanently raised to $250,000 per depositor as part of the Dodd-Frank Wall Street Reform and Consumer Protection Act. The insurance was temporarily raised from $100,000 to $250,000 on October 3, 2008. It was supposed to expire on December 31, 2010, but was temporarily extended to December 31, 2013. This is a welcome change to keep up with inflation, since the previous $100k maximum was last raised in 1980. “With this permanent increase of deposit insurance coverage to $250,000, depositors with CDs above $100,000 but below $250,000 will no longer have to worry about losing coverage on those CDs maturing beyond 2013,” said FDIC Chairman Sheila Bair. This change is also retroactive to January 1, 2008. This deposit insurance change will also apply to credit unions.
Now that the rate has changed, the question to ask is will this affect what is considered to a Jumbo CD?
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