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3. Erin has the following liquid assets on deposits with her bank, which is an FDIC-insured...

3. Erin has the following liquid assets on deposits with her bank, which is an FDIC-insured institution. Account Ownership Balance CD Erin $200,000 Savings Erin with spouse $50,000 IRA (money market deposit account) Erin $75,000 Checking account Erin $90,000 What is the total amount currently insured by the FDIC?

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Answer #1

FDIC insures balances on checking account, savings account, IRA and certificates of deposit (CDs)

The maximum insurance limit is $250,000 per category per owner

Hence amount insured is as follows

Account Ownership Balance CD Erin $200,000 (Max $250,000 per owner)

Savings Erin with spouse $50,000 (Max $250,000 per co-owner)

IRA (money market deposit account) Erin $75,000 (Max $250,000 per owner)

Checking account Erin $90,000 (Max $250,000 per owner)

Total Insured = $415,000

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