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The protection of the money we deposit in our bank accounts
is something most of us take for granted today, but this security has not always been there.
After the stock market crash of 1929, thousands of banks failed. In 1933, Congress and
President Franklin D. Roosevelt created the Federal Deposit Insurance Corporation (FDIC)
to provide federal government guarantee of deposits and maintain stability and public
confidence in the nation's banking systems. Today, the FDIC insures deposits up to
$100,000 per depositor, per bank, subject to certain conditions.
1933: Congress creates
the FDIC.
1934: Deposit insurance
coverage initially set at $2,500.00, then raised midyear to $5,000.
1950: Deposit insurance
increased to $10,000; refunds established for banks to receive a credit for excess assessments
above operating and insurance losses.
1960: FDIC's insurance
fund passes $2 billion.
1966: Deposit insurance
increased to $15,000.00.
1969: Deposit insurance
increased to $20,000.00.
1974: Deposit insurance
increased to $40,000.00.
1980: Deposit insurance
increased to $100,000.00; FDIC insurance fund is $11 billion.
1983:
Deposit insurance refunds discontinued.
1987:
Congress refinances Federal Savings and Loan Insurance Corp. fund
rebuilt with more than $10 billion spread out over three years.
1988: 200
FDIC-insured banks fail; FDIC loses money for the first time.
1989:
Resolution Trust Corp. created to dissolve problem thrifts; OTS opens to
oversee thrifts.
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1990:
First increase in FDIC insurance premiums from 8.3 cents to 12 cents per
$100 of deposits.
1991:
Insurance premiums hit 23 cents per $100 of deposits. FDICIA legislation
increases FDIC borrowing capacity, least cost-resolution is imposed,
too-big-to-fail procedures are written into law and risk-based premium
system is created.
1993:
Banks begin paying premiums based on their risk.
1996: The
Deposit Insurance Funds Act prevents the FDIC from assessing premiums
against well-capitalized banks if the deposit insurance funds exceed the
1.25% designated reserve ratio.
2006: Deposit
insurance, as of April 1, for Individual Retirement Accounts (IRA) increased to $250,000.00.
This is separate from the regular $100,000.00 coverage of your other deposit accounts.
2008: The
Emergency Economic Stabilization Act of 2008 was signed on October 3, 2008. This temporarily raises the basic
limit of federal deposit insurance coverage from $100,000.00 to $250,000.00 per depositor. The
legislation provides that the basic deposit insurance limit will return to $100,000.00 on
December 31, 2009.
2009: The
temporary increase in bank deposit insurance to $250,000.00 has been extended for four years, the
Federal Deposit Insurance Corporation announced in a letter to financial institutions on May 22, 2009.
The standard maximum insured amount was increased to $250,000.00 on October 3, 2008, but was set to
return to $100,000.00 at the end of 2009. The temporary increase has now been extended through 2013.
The extension came by way of the Helping Families Save Their Homes Act, which President Barack Obama
signed into law May 20, 2009.
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