BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Deposit all $500, 000 in an NCUA insured Credit Union
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Deposit $250, 000 in one FDIC insured Bank and $250, 000 in a separate FDIC insured bank.
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Deposit $400, 000 in an a checking account at a FDIC insured Bank and $100, 000 in a NCUA insured Credit Union.
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Deposit all $500, 000 in a checking account at a FDIC insured Bank
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Detailed explanation-1: -If you want your funds insured by the FDIC, simply place your funds in a deposit account at an FDIC-insured bank and make sure that your deposit does not exceed the insurance limit for that ownership category.
Detailed explanation-2: -Perhaps the most straightforward way to get another $250, 000 insured is to open an account at a second FDIC member bank. If you’re using accounts that earn interest at a bank with only FDIC insurance, be sure your deposits are low enough that your balance with interest will be within the $250, 000 limit.
Detailed explanation-3: -Insurance Limit Each co-owner of a joint account is insured up to $250, 000 for the combined amount of his or her interests in all joint accounts at the same IDI. In determining a co-owner’s interest in a joint account, the FDIC assumes each co-owner is an equal owner unless the IDI records clearly indicate otherwise.
Detailed explanation-4: -You can increase your FDIC insurance coverage by creating a payable-on-death account (also known as an informal trust, in-trust-for, or Totten Trust account) or titling an account in the name of a formal revocable trust . For these account types, each unique beneficiary adds $250, 000 of coverage up to FDIC limits.
Detailed explanation-5: -The standard insurance amount is $250, 000 per depositor, per insured bank, for each account ownership category. The FDIC provides separate coverage for deposits held in different account ownership categories.