Federal Government Permanently Raises FDIC Limits to $250,000

In 2009, FDIC limits were temporarily raised from $100,000 to $250,000 but this higher was set to expire in 2013. When President Barack Obama signed the new Financial Reform bill yesterday, it made the $250,000 FDIC insurance limits permanent. This is great news for CD investors, as you now can deposit up to $250,000 in CDs with a maturation date past 2013 without having to worry about losing your money if something happened to your bank. You should always double-check to make sure your banking institution participates in the FDIC program, and you can do so by clicking here. This website also has a tool that can calculate whether or not all of your investments at a bank are covered by FDIC insurance. Alternatively, you can call 1-877-ASK-FDIC (1-877-275-3342) Monday – Friday from 8:00am to 8:00pm Eastern Time with any questions. 

So, now may be a good time to take a look at 5-year CD products. If you live in the New York area, Astoria Federal Savings is offering a 5-year CD with a 3.05% APY and a $500 minimum opening balance. Nationally, Sallie Mae still offers one of the best rates around with a 5-year CD at a 3.00% APY and no minimum opening balance. Interest at both Astoria Federal Savings and Sallie Mae are compounded daily.

For the best information on current 5-year CD rates, click here.