Phil's Personal Finance Tip of the
Day:
What accounts are insured in case of bank failure?
By CNBC
Walk into your bank's neighborhood branch or visit their website and you're offered a choice of the usual checking and savings accounts. Options also include slightly more sophisticated products - mutual funds, annuities, insurance policies and brokerage accounts.
Banks used to be far more limited in their offerings. But with the Financial Services Modernization Act of 1999, longstanding barriers that had prevented banks from affiliating with securities and insurance firms were removed. The change allowed banks to operate as holding companies that could engage in other financial activities through non-banking subsidiaries.
"It broke down the walls that existed between those institutions," says Gerri Walsh, vice president for investor education at the Financial Industry Regulatory Authority, the largest independent regulator of securities firms. Many institutions now offer federally insured savings accounts and certificates of deposit under the same roof as uninsured products such as mutual funds.
So how do you sort out which of your accounts are insured in case of bank failure?
To read the entire article from Yahoo Finance/CNBC:
http://finance.yahoo.com/news/bank-accounts-really-insured-175456188.html
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