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FDIC Consumer News - Summer 1998

Important Update: Changes in FDIC Deposit Insurance Coverage

The FDIC deposit insurance rules have undergone a series of changes starting in the fall of 2008. As a result, certain previously published information related to FDIC insurance coverage may not reflect the current rules. For details about the changes, visit Changes in FDIC Deposit Insurance Coverage. For more information about FDIC insurance, go to www.fdic.gov/deposit/deposits/index.html or call toll-free 1-877-ASK-FDIC (1-877-275-3342). For the hearing-impaired, the number is 1-800-925-4618.

FDIC Decides Insurance Coverage of Medical Savings Accounts FDIC Decides Insurance Coverage of Medical Savings Accounts

The Medical Savings Account (MSA) is a relatively new type of trust account that people who are self-employed or work for a “small employer” (maximum 50 people) can use to pay for certain medical expenses if their health insurance plan has a high deductible. The benefit of an MSA is that contributions up to a set amount are tax-deductible. The FDIC’s Legal Division recently issued an opinion on the insurance coverage of MSAs held at banks and savings institutions.

In general, an MSA will be considered an individual account for insurance purposes. So, typically, any funds in your MSA at an insured institution would be added to any other funds you hold in other individual accounts at the same bank or thrift and be insured to a limit of $100,000. Under certain circumstances, though, your MSA may be treated differently.

For more information on the insurance coverage of an MSA, contact the FDIC’s Division of Compliance and Consumer Affairs

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Last Updated 07/30/1999 communications@fdic.gov