Starting January 1, 2013, noninterest-bearing transaction accounts will no longer be insured separately from a depositors’ other accounts at the same Insured Depository Institution (IDI). Accounts will now be insured on an aggregate level at a maximum of $250,000.
For example, if a depositor under the single ownership category has $1,000,000 deposited in a noninterest-bearing transaction account and $250,000 deposited in a certificate of deposit, or total deposits of $1,250,000, the depositor would be insured for up to $250,000 and uninsured for the remaining balance of $1,000,000.
Please visit www.fdic.gov/edie to see if your deposits are covered under FDIC. This is a great calculator which will answer many of your questions.
Disclaimer: This article represents the opinion of Mitlin Financial Inc. It should not be construed as providing investment, legal and/or tax advice.