Citi Touts $250,000 FDIC Insurance

Citigroup is using the higher deposit insurance protection for marketing benefit.

In an email correspondence today, Citi made its customers “aware” of the greater FDIC deposit insurance. The note reads, in part:

Dear CUSTOMER,

As a valued Citibank client, we want to make you aware that FDIC deposit insurance has increased to at least $250,000 per depositor, per insured bank, through December 31, 2009. Deposit accounts covered by FDIC insurance include checking and savings accounts, money market deposit accounts and certificates of deposit (CDs).

There is no need for you to apply for FDIC insurance – coverage is automatic. You may qualify for more than $250,000 in coverage at an insured bank if you own deposit accounts in different ownership categories (single, joint, IRA’s and trusts).

Citigroup is based in New York. The higher FDIC insurance ceiling went into effect on Oct. 3.

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One Comment

  1. jjhornblass says:

    True, but it is interesting that Citi, one of the largest, and presumably safest, banks in the nation is touting the $250,000 insurance. That’s why I highlighted it.

    I can’t see the FDIC repealing it, unless the government caves to the banking lobby. But that too I see as doubtful if Obama wins the election.

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