video: fdic insurance: protecting your deposits\nregardless of which type of bank you use, confidence that…
video: fdic insurance: protecting your deposits\nregardless of which type of bank you use, confidence that your money will stay safe is a fundamental concern. the fdic is a government agency thats like insurance for your bank deposits. watch this video to learn how its been protecting peoples money for almost 100 years!\nthen, answer the questions.\n1. what is the maximum amount of money the fdic insures per person? 250,000 per person\n2. carmine has $45,000 in a savings account and $225,000 in an ira retirement account. how much of their deposits will they receive if the bank fails?
Answer
Explanation:
Step1: Recall FDIC insurance rules
The FDIC insures up to $250,000 per depositor, per insured bank, for each account ownership category. A savings account and an IRA (Individual Retirement Account) are different ownership - categories.
Step2: Calculate insured amount for savings account
Carmine has $45,000 in a savings account. Since $45,000 < $250,000, the entire $45,000 in the savings account is insured.
Step3: Calculate insured amount for IRA account
Carmine has $225,000 in an IRA account. Since $225,000 < $250,000, the entire $225,000 in the IRA account is insured.
Step4: Calculate total insured amount
Add the insured amounts of the two accounts: $45,000 + $225,000=$270,000.
Answer:
$270,000