Four more years: FDIC extends its maximum insurance limit

On Wednesday, the Federal Deposit Insurance Corporation (FDIC) announced that it will keep the $250,000 account cap in place until December 31, 2013. The new limit was originally set to expire on December 31, 2009.

The cap, which was increased from $100,000 in October 2008, represents the maximum amount of money that the government will insure in an individual bank account; should a bank fail, the government promises to replace all funds up to that amount. This is also true of National Credit Union Administration (NCUA)-insured credit union accounts. Bank and credit union-held retirement accounts, such as IRAs, are permanently insured up to $250,000.