I just read that republicans are proposing "Extending government deposit insurance to business transaction accounts."
does this mean a business entity has no FDIC protection currently?
-------------------------------------- Misc.invest.financial-plan is a moderated newsgroup where Moderators strive to keep the conversations on-topic for financial planning. Other posting guidelines include a request for brevity and another for trimming posts to which we respond. For all of the other tips and suggestions, see "FROM THE MODERATORS: Posting to misc.invest.financial-plan", a weekly post now on the Newsgroup.
thanks. I guess that was just sloppy reporting, the way it was worded. I guess they mean to increase it beyond $250k. I guess.
-------------------------------------- Misc.invest.financial-plan is a moderated newsgroup where Moderators strive to keep the conversations on-topic for financial planning. Other posting guidelines include a request for brevity and another for trimming posts to which we respond. For all of the other tips and suggestions, see "FROM THE MODERATORS: Posting to misc.invest.financial-plan", a weekly post now on the Newsgroup.
Business entities are currently insured ... directed from the FDIC Website: "Deposits owned by a corporation, partnership, or unincorporated association are insured up to $250,000 at a single bank, but are insured separately from the personal accounts of the entity's stockholders, partners, or members."
Jean Keener Keller, TX
formatting link
-------------------------------------- Misc.invest.financial-plan is a moderated newsgroup where Moderators strive to keep the conversations on-topic for financial planning. Other posting guidelines include a request for brevity and another for trimming posts to which we respond. For all of the other tips and suggestions, see "FROM THE MODERATORS: Posting to misc.invest.financial-plan", a weekly post now on the Newsgroup.
"Gil Faver" > appear that the money isn't getting this extra insurance.
FDIC insurance does not cover funds in deposit accounts _in excess of_ stated maximum coverage. The statement quoted above does not address how that maximum coverage is applied.
Do you get unlimited coverage on money you deposit to a transaction account even if the bank, unbeknownst to you, keeps it in a sweep account (which is by law not a transaction account)? If the insurance only applies so long as the bank doesn't sweep the money to a savings account (which is something you have no control over), then these accounts aren't really getting more insurance - at least not insurance the customer can rely on. Unreliable insurance is no insurance at all.
Since the stated purpose of providing unlimited coverage on _all_ non-interest bearing transaction accounts is to protect business payrolls, and (I don't believe) large businesses tend to use credit union demand deposit accounts, there would not seem to be a rationale for extending the unlimited insurance on DDAs to credit unions.
Mark Freeland snipped-for-privacy@nyc.rr.com
-------------------------------------- Misc.invest.financial-plan is a moderated newsgroup where Moderators strive to keep the conversations on-topic for financial planning. Other posting guidelines include a request for brevity and another for trimming posts to which we respond. For all of the other tips and suggestions, see "FROM THE MODERATORS: Posting to misc.invest.financial-plan", a weekly post now on the Newsgroup.
BeanSmart website is not affiliated with any of the manufacturers or service providers discussed here.
All logos and trade names are the property of their respective owners.