How Much of Our Money is Insured?

Parent Cafe
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<p>Okay, I give up. I really do not understand the rules with the FDIC insurance and my/your money.</p>

<p>The FDIC has a list of 90 banks that are in trouble. Indybank was not on the list. They have failed.</p>

<p>My questions:</p>

<p>How much money is insured in company 401k?</p>

<p>How much money of stocks, mutual funds etc. is insured at an investment company?</p>

<p>How much of IRA is insured?</p>

<p>If all these monies are held by the same bank what difference does this make?</p>

<p>If I have two names on the account is it insured up to double the amount?</p>

<p>Do I have to move money out of my 401k and roll it over into a different bank for it to be fully insured?</p>

<p>Is company pension insured to a certain point or at all?</p>

<p>Anyone care to take a stab at any of these?
Come on CC…can we come up with a consensus?</p>

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<p>IRAs are insured up to $250,000.</p>

<p>Bank accounts are insured up to $100,000 per depositor per bank. A simple example of this is that if you have only a joint account at a bank, that account is insured up to $200,000. Each individual is insured for a total of $100,000 at each bank among all accounts at that bank.</p>

<p>The above is completely accurate. This may or may not be: I believe that the FDIC does not insure stocks and mutual funds. I know that money market accounts make it a point to tell you that you could potentially lose money, and nothing is insured.</p>

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<p>[Mutual</a> Fund Insurance (Ask SmartMoney: Personal Finance) at SmartMoney.com](<a href=“Personal Finance Advice - Personal Financial Management - MarketWatch”>Personal Finance Advice - Personal Financial Management - MarketWatch)</p>

<p>Okay, so definitely mutual funds are not insured.</p>

<p>IRA’s are insured up to $250,000. </p>

<p>If IRA and other bank accounts are in the same bank are they still seen as separate?</p>

<p>Arnoc…thank you for your post. So far it concurs with what I think I undersatnd.</p>

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<p>Stocks and mutual funds may be insured by SIPC - which I consider useless. Brokerages and mutual fund companies may have their own additional insurance but you’d have to contact your vendors for information there.</p>

<p>Direct obligations of the US Government (like Treasuries) are backed by the US Government. I think that Ginnie Maes are too.</p>

<p>Pensions are backstopped by the Pension Guarantee Benefit Corporation. IMO, they are undercapitalized.</p>

<p>I looked into this stuff a few years ago when I was worried about the banking system.</p>

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<p>Re securities, mutual funds and money market accounts:</p>

<p>The Securities Investors Protection Corporation (SIPC), a non government entity, replaces missing stocks and other securities in customer accounts held by its members up to $500,000, including up to $100,000 in cash, if a member brokerage or bank brokerage subsidiary fails.</p>

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<p>During the S&L failures of the 80s, no depositor lost money – even if their deposits were in excess of the FSLIC limits. I wouldn’t expect anything different this time around. (All federally-chartered banks and S&Ls are now guaranteed by the FDIC.)</p>

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<p>Thanks, BCEagle.</p>

<p>How about the 401 K?</p>

<p>Thanks Ellen and washdad.</p>

<p>Indybank says they will pay 50% of monies in excess of $100,000. The rest is lost. Any other $$$'s after the fact will be divided among stockholders.</p>

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<p>According to the FDIC website, IRAs and deposit accounts at the same bank are considered separately. To verify, I played around with [FDIC:</a> Electronic Deposit Insurance Estimator (EDIE) – Online Version](<a href=“http://www4.fdic.gov/EDIE/]FDIC:”>http://www4.fdic.gov/EDIE/) and put in two accounts - an IRA with $250,000 and a deposit account with $100,000: it ended up saying that the IRA and deposit account were both completely insured.</p>

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<p>arnoc…thanks for that link! I don’t find that site very user friendly and didn’t see that.</p>

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<p>Full faith and credit of the United States of America.</p>