Are you worried about the failure of at least 15 banks this year? How are your business bank accounts structured? If you take the right steps to safeguard your business assets, a bank failure won’t cost you your deposits.

It has been predicted by the “experts” that the banking crisis will continue. The FDIC has made a few policy changes to reassure depositors. It simplified rules for revocable trusts, increased the level of insurance coverage per depositor from $100,000 to $250,000 for interest bearing accounts and agreed to insure the full value of non-interest-bearing accounts until December 31, 2009. Coverage on interest-bearing accounts can be increased…if the accounts are held in different ownership categories i.e. single, joint, revocable trust, and some retirement accounts.

For example, the FDIC adds together the deposits in all “single” accounts owned by the same person. If John Doe has a personal checking account, savings account, CD account, and a business account (as a sole proprietor), these will be added together. John will only be insured up to $250,000 and only until the end of 2009. He will need to keep up on the FDIC’s level of insurance coverage per depositor thereafter. If John’s accounts exceed the insured amount, he will need to deposit the excess in another bank or place it in a different “ownership category” like a living trust

To learn more about the FDIC go to www.fdic.gov

Please contact us if you have further questions. We are happy to help.