Hello and

welcome to Moneygirls quick and dirty tips for a richer life.

Today's topic, answers to your questions about FDIC insurance.

Today I want to answer some of the listener questions I received in response to last

week's episode about FDIC insurance.

Patty M emailed me with this question.

If you have a CD for $100,000 in an FDIC insured bank

and the bank failed, would the interest accrued also be insured?

Or would you be down to $100,000?

Thanks for the question, Patty.

The answer is short but less than sweet. The $100,000.00

$100,000 FDC insurance limit for deposit accounts applies to savings plus interest.

If your $100,000 account were to grow, say, to $110,000 due to interest,

the $10,000 that exceeds the limit would be uninsured.

One solution would be to keep accounts at multiple FDIC insured banks

each with less than $100,000.

Also, keep in mind that it's possible to have more than $100,000 covered at an FDIC insured bank

if you have multiple accounts with different ownership types.

The FDIC separately ensures accounts with different types of ownership

at the same financial institution.

The FDIC recognizes eight different ownership types including single, joint, revocable trust

and irrevocable trust accounts to name just a few.

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