FDIC Put To A News On 6 Reality Check

By Dan Bewley and Scott Thompson, The News On 6

TULSA, OK -- Part of the proposed Senate bailout bill includes raising the federal deposit insurance limit to $250,000.

The FDIC was started in 1933 after thousands of banks failed in the 1920's and 1930's.  With more than a dozen banks failing this year The News On 6 Reality Check looks at the federal insurance program.

Currently, the FDIC insures deposits up to $100,000.  You can have more than $100,000 insured, but you must change the structure of the account.  You can do that by adding names to the account as joint tenants.

There's no limit on the amount of coverage a bank can have, it's all based on the amount of deposits.  The insurance is paid each year by the banks, not the account holder.  It's just considered a part of doing business.

If a bank fails, two steps could be taken.

The FDIC could transfer the insured account to another federally insured bank or issue a check to the depositor for the account balance.  The FDIC's goal is to make payments one business day after the bank fails, depending on the complexity of the account.

In the 75 years of the program, no one has lost a single cent of insured money because of a bank failure.

Experts encourage you to talk with your banker if you have concerns about your account.

Credit Unions are also insured through a federal program.  It's called the National Credit Union Administration (NCUA) and its terms and conditions are exactly like the FDIC.