Question

Anna recently opened a savings account in a federally insured bank; she made three deposits in the amounts of $100,000, $65,000 and $220,000 into the account. if the bank were to fail and go out of business, how much of anna's money would she have fdic insurance on? note: the decision to reduce fdic coverage on dec. 31, 2013, back to a prior year level was rescinded, and as such the amount was not reduced.

Answer 1

$250,000  
Federal Deposit Insurance Corporation (FDIC) was created by the 1933 Banking Act during the Great Depression (June 16 1933). It's purpose was to restore trust in the banking system. Initially, the insured limit was $2,500, but over the years it has increased. The limits over time are: 1934 – $2,500; 1935 – $5,000; 1950 – $10,000; 1966 – $15,000; 1969 – $20,000; 1974 – $40,000; 1980 – $100,000; 2008 – $250,000 The increase from $100,000 to $250,000 was intended on being temporary, but as mentioned in the question, wasn't reduced and is therefore still the current limit. So Anna will be insured up to the $250,000 limit.