FDIC Limit Increase with Beneficiaries
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FDIC Limit Increase with Beneficiaries
My parents were talking to their banker and the banker told them if you have additional beneficiaries with the bank it increases the FDIC limit for another 250K per beneficiary. So for example, if there was a joint account with 2 beneficiaries at the bank the total FDIC limit would be 1 million in deposits vs 500K. Can someone help me confirm if this is true or not?
Re: FDIC Limit Increase with Beneficiaries
This will calculate it for you: https://edie.fdic.gov/calculator.htmlboogiehead wrote: ↑Thu Mar 23, 2023 4:29 pm My parents were talking to their banker and the banker told them if you have additional beneficiaries with the bank it increases the FDIC limit for another 250K per beneficiary. So for example, if there was a joint account with 2 beneficiaries at the bank the total FDIC limit would be 1 million in deposits vs 500K. Can someone help me confirm if this is true or not?
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Re: FDIC Limit Increase with Beneficiaries
Thanks, appreciate it.exodusNH wrote: ↑Thu Mar 23, 2023 4:49 pmThis will calculate it for you: https://edie.fdic.gov/calculator.htmlboogiehead wrote: ↑Thu Mar 23, 2023 4:29 pm My parents were talking to their banker and the banker told them if you have additional beneficiaries with the bank it increases the FDIC limit for another 250K per beneficiary. So for example, if there was a joint account with 2 beneficiaries at the bank the total FDIC limit would be 1 million in deposits vs 500K. Can someone help me confirm if this is true or not?
Re: FDIC Limit Increase with Beneficiaries
I will need to reread the rules again as erp seems to contradict my original post.
Last edited by Katietsu on Fri Mar 24, 2023 6:41 am, edited 1 time in total.
Re: FDIC Limit Increase with Beneficiaries
It's not additive as implied by the way the banker said it, but multiplicative (each owner/beneficiary pair gets 1x coverage).boogiehead wrote: ↑Thu Mar 23, 2023 4:29 pm My parents were talking to their banker and the banker told them if you have additional beneficiaries with the bank it increases the FDIC limit for another 250K per beneficiary. So for example, if there was a joint account with 2 beneficiaries at the bank the total FDIC limit would be 1 million in deposits vs 500K. Can someone help me confirm if this is true or not?
so 2-joint/2-beneficiary is 2x2 = 4 times coverage
but 2-joint/1-beneficiary is 2x1 = 2 which is the same 2x coverage (ie it's not 3x coverage).
also individual/2-beneficiary is 1x2 = 2 times coverage (not 3x)
and individual/1-beneficiary is 1x1 = 1 times coverage (not 2x)
and finally, the 1x coverage for each owner/beneficiary pair is across all accounts for which that pair shows up in that bank.
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Re: FDIC Limit Increase with Beneficiaries
Thanks for spelling out the details... not sure how FDIC came up with this logicerp wrote: ↑Fri Mar 24, 2023 12:58 amIt's not additive as implied by the way the banker said it, but multiplicative (each owner/beneficiary pair gets 1x coverage).boogiehead wrote: ↑Thu Mar 23, 2023 4:29 pm My parents were talking to their banker and the banker told them if you have additional beneficiaries with the bank it increases the FDIC limit for another 250K per beneficiary. So for example, if there was a joint account with 2 beneficiaries at the bank the total FDIC limit would be 1 million in deposits vs 500K. Can someone help me confirm if this is true or not?
so 2-joint/2-beneficiary is 2x2 = 4 times coverage
but 2-joint/1-beneficiary is 2x1 = 2 which is the same 2x coverage (ie it's not 3x coverage).
also individual/2-beneficiary is 1x2 = 2 times coverage (not 3x)
and individual/1-beneficiary is 1x1 = 1 times coverage (not 2x)
and finally, the 1x coverage for each owner/beneficiary pair is across all accounts for which that pair shows up in that bank.