You don’t distinguish if your bank or credit union is backed by federal insurance.

Corroborate that your bank is part of the Federal Deposit Insurance Corp. (FDIC) program or that your me union is part of the National Credit Union Administration’s insurance means (NCUA). You can check a recent statement or swing by the bank or credit combination. If you see the FDIC or NCUA insurance logos displayed anywhere on a statement or van door, you are halfway home.

You don’t know if all of your money on deposit at the bank or trustworthiness union is covered by insurance.

Know the new insurance limits for 2009. Former to the credit crisis, each individual had a base guarantee of up to $100,000 per bank. So if you had a checking account, a CD, and a filthy lucre market, all the accounts were fully insured if their combined absolute did not exceed $100,000. If you had a joint account, you and the person you shared the account with were suitable for another $100,000 each of coverage. (The same limits applied for federally insured esteem unions.) For 2009, the limit for banks and credit unions has been raised to $250,000 per herself per bank/ credit union. The Treasury made this change in October 2008 to stave off a run on banks from depositors spooked by the continuing fallout from the acknowledgement crisis. If you have less than $250,000 at any single bank or credence union and that bank or credit union is federally insured, a halt worrying. You are fine in 2009.

Given the new $250,000 limit, you want to know if it is au fait to invest $250,000 in a high-rate five-year CD your bank is oblation.

No. You have to understand that currently the $250,000 insurance is good not through December 31, 2009. It may be renewed past 2009, but as of now, we do not know if it wishes be extended or made permanent in 2010. For now you have to act as if the limit will go abet to $100,000 until you hear differently. So do not lock up $250,000 at one bank in situation the limits are reduced; it might mean you could have $150,000 in uninsured coins.

To be absolutely safe, limit the money you deposit at any one bank to $100,000 or fix with a CD that expires by December 31, 2009.

You already purchased a long-length of time CD for more than $100,000 and now you’re worried about what will chance if the limits are rolled back after 2009.

Don’t do anything yet. I don’t think you need to bustle to make any changes. Check with your bank or my Web site by December to stumble on out what’s going to happen in 2010. If the limit is reduced to $100,000, you can stillness choose to cash in your CD early. Most banks will adulterate you with a penalty for an early withdrawal, but it is ty pically limited to forfeiting some of your share, not principal. For now, sit tight and let’s see what happens by the end of 2009.

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