As you know, the FDIC temporarily raised the limit for deposit insurance in 2009 from a basic $100,000 to $250,000. Now we just got confirmation from Washington that the $250,000 coverage limit will remain through at least 2013. That’s great news.

Those of you with sizable account balances (up to $250,000 including interest) who want to invest in certificates of deposit (CDs) with longer maturities can now confidently purchase any FDIC insured CD that matures on or before Dec 31, 2013. Until we know what happens after January 31, 2013 I would play it safe. So if you want to buy an FDIC insured CD that matures in five years (past the 2013 date) I would not have more than $100,000 including the interest in that account. Why? Because the FDIC insured limits are scheduled to go back to $100,000 on January 1, 2014; so to be extra safe you don’t want to have more than $100,000 in an account after that date.

Remember, $250,000 is just the base level of protection. You can in fact be eligible for much more coverage depending on the types of accounts you have at a bank. Here is a rundown of the basic coverage available to each depositor:

• Single Accounts (owned by one person): $250,000 per owner
• Joint Accounts (two or more persons): $250,000 per co-owner
• IRAs and other certain retirement accounts: $250,000 per owner
• Payable on Death Accounts: Each owner is insured up to $250,000 for the interests of each beneficiary, subject to specific limitations and requirements.

So for example, if you had $250,000 in your own deposit account, and you had $500,000 in a joint account (your share would be $250,000), another $250,000 in an IRA and another $250,000 in a POD account with anyone you name besides yourself  listed as the beneficiary every penny of your entire $1,000,000 would be backed by the FDIC insurance. In the unlikely event that anything were to happen to your bank, the FDIC assures you will get 100 cents back on every dollar. That promise is backed by the full faith and credit of the U.S. government. In other words: there’s nothing to worry about.

As I have explained before you must verify that your bank is in fact part of the FDIC insurance program. If it displays the FDIC logo on its front door, or its web homepage you’re good to go. But I also recommend that you go to myfdicinsurance.gov and double check. Not only can you confirm that your bank is FDIC-insured, but the free online tool will walk you through whether all your accounts at one bank are each fully insured.  And you will see me when you go there since I helped create that tool. As I say in the FDIC public service announcement that I made for the FDIC: No one cares more about your money than you, me and the FDIC.

The National Credit Union Administration has yet to announce whether it too will extend the $250,000 coverage for federally insured credit unions past 2009. Please check back; I will post NCUA news when it become available.