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FDIC Temporarily Increases Insurance Limits to $250,000

Following my most recent post “Financial Meltdown: Taking Care of Your Client’s Money” Congress acted to temporarily increase deposit insurance coverage limits to $250,000. The change was effective as of October 3, 2008 and continues through December 31, 2009. The coverage is provided through the Federal Deposit Insurance Corporation (FDIC) which is an independent agency of the United States government that protects against the loss of insured deposits if an FDIC-insured bank or savings association fails. This deposit insurance is backed by the full faith and credit of the United States government. A summary of the insured deposit coverage can be found at the FDIC’s web-site. It is worth repeating that you need to comply with all accounting rules required by the Massachusetts Rules of Professional Responsibility to ensure that you can document your client’s right to the funds.