where i can find where it shows that FDIC Insurance does not truely cover 100k per account?

Question

I was told that FDIC insurance coverage does not truely cover 100k per account and in the case of severe economic failure its really only 16 or 17 cents on the dollar... does anyone know where i can find this information... Thank you

Ive seen a few responces... I understand the basics.. but a banker in here with us today and said if you ask the bank for a FDIC disclosure you will see it on there showing its not truely 100% coverage...

I work in the Financial Services field and were looking at comparrisions.. if you have 30 accounts at 30 banks with 100k each one is insured for 100k ... thats not the question..

the issue is in a major recession is what if a major downfall.. what is the coverage then.. Thanks

Answer 1

Your information is all mixed up. The FDIC guarantees up to $100k per entity per bank. In the case of retirement funds, the guarantee has gone up to something like $150k or $250k. It isn't 16 or 17 cents on the dollar otherwise it wouldn't be a guarantee.

The difference is that if you have $90k in one account and $50k in another, you would only get $100k back instead of $140k.

With the governance of banks today, I would say the chances of it ever coming to this are slim to none. Of course our financial system could crumble and cause bunches of banks to go out of business and the government wouldn't have enough money to pay all of the guarantees. I guess it wouldn't really matter at that point because our money would be worthless anyway.

Answer 2

I don't know where you got this $0.16 cents on the dollar but this web page from the FDIC explains the coverage.

If you have the money in a deposit account, up to $100,000 is covered ==> fully insured.

Answer 3

That's not the way these examples that FDIC has placed on their site indicates.

If you have 100K or less, you should be FULLY insured for the full amount.

http://www.fdic.gov/deposit/deposits/insuringdeposits/index.html