Are Your Savings Secure?

Banks seem to be failing left and right. Could yours be next?

Perhaps the only famous Edie you know is Edit Britt on Desperate Housewives. But there's another gal by the same name who has important information to share with you. The FDIC calls her EDIE the Estimator, and she's your online source for verifying the safety of your bank deposits.

A friend you should know

The FDIC wants you to ignore that nagging inner voice that's telling you to pull your savings out of the U.S. banking system. The banking regulator has even developed a tool to help you put that voice to rest: it's an online interface known as EDIE the Estimator.  Its job is to tell you whether your bank deposits are fully covered by FDIC deposit insurance. If they are, you don't have to worry about losing one cent-even if your bank fails. But if your deposits aren't covered, EDIE can help you restructure them accordingly.

Crossing your t's

Before you sit down to use the Estimator, you need to do two things to ensure accurate results. First, verify your bank's FDIC status. Take a quick trip to the institution's website, and look for the FDIC logo or verbiage indicating that deposits are FDIC-insured. Next, gather up your most recent bank statements.

You'll need them because the system's assessment of your coverage is wholly based on the information you provide. If you make an inaccurate guess about an account balance or ownership type, EDIE's evaluation of your coverage could be wrong.

Once you have your account information, access EDIE at www.myfdicinsurance.gov. To begin, click on "Get Started" and let EDIE prompt you for the necessary information. You'll provide the name of your bank first, followed by the details regarding each of your accounts housed there. Since FDIC insurance limits apply to all deposits at one bank, you have to create a separate coverage report for each bank where you have money deposited. 

Instant gratification

Once you input the account data, click "Calculate." EDIE will immediately let you know whether your savings are covered by FDIC deposit insurance.

If EDIE indicates that your deposits aren't currently covered, you have a couple of options. You can either move a portion of your money to another bank, or redistribute your money among the ownership categories at your existing one. Currently, the deposit insurance limits by ownership category are:

• Single accounts: up to $250,000 per owner

• Joint accounts: up to $250,000 per co-owner

• IRAs and certain other retirement accounts: $250,000 per owner

• Trust accounts: $250,000 per owner per beneficiary

These limits apply to the total amount deposited at one bank within that ownership category. If you aren't sure how to restructure your deposits, play around with different scenarios on EDIE, or talk to your banker.