3 Erin has the following liquid assets on deposits with her

3. Erin has the following liquid assets on deposits with her bank, which is an FDIC-insured institution. Account Ownership Balance CD Erin $200,000 Savings Erin with spouse $50,000 IRA (money market deposit account) Erin $75,000 Checking account Erin $90,000 What is the total amount currently insured by the FDIC?

Solution

FDIC insures balances on checking account, savings account, IRA and certificates of deposit (CDs)

The maximum insurance limit is $250,000 per category per owner

Hence amount insured is as follows

Account Ownership Balance CD Erin $200,000 (Max $250,000 per owner)

Savings Erin with spouse $50,000 (Max $250,000 per co-owner)

IRA (money market deposit account) Erin $75,000 (Max $250,000 per owner)

Checking account Erin $90,000 (Max $250,000 per owner)

Total Insured = $415,000