Question

After reading the new account insert in his monthly​ statement, Tony Mercadante determined that the FDIC considers a joint account as a separate depositor. He and his wife Cynthia have three accounts at ABC Bank​ & Trust, one joint account with a balance of ​$56,379 and two individual accounts−his a ​$134,207 balance and hers has a ​$253,910 balance. What amount of FDIC coverage do Tony and Cynthia have on their​ accounts?

Answer 1

The FDIC or federal deposit insurance corporation prescribes a limit of $250,000 per depositor.

Tony has wrongly determined that joint account will be considered as a separate depositor.

Tony individual balance is $134,207 and joint balance is $ 56,379, which total's $190,586

Cynthia balance is $253,910 which is above the limit of $250,000.

Tony's account and the joint account will be covered entirely but Cynthia's will not be covered for $3,910, she should move this money to the joint account so the entire amount can be covered.