Retirees and small businesses – there are plenty of both in Lower Pottsgrove (PA) Township and Sanatoga – tend to carry higher deposit balances in their bank accounts. They may benefit most if an increase in limits on bank deposits insured by the Federal Deposit Insurance Corp. (FDIC) becomes law.
The FDIC currently guarantees to re-pay depositors every penny they have in a traditional savings account at an insured failed bank, up to $100,000. Some money market funds, and other less traditional savings vehicles, are not similarly insured. Temporarily raising the limit, to $250,000, is part of a resuscitated national financial rescue plan passed last night (Oct. 1, 2008) by the U.S. Senate. Both U.S. senators for Pennsylvania, Arlen Specter and Robert Casey Jr., voted to approve the measure.
Hiking the limit gives added assurance to depositors that they need not worry about or withdraw their money if a bank shows signs of trouble.
If approved by the House and signed into law, the increase would take effect next Tuesday (Oct. 7, 2008) and continue through Dec. 31, 2009. The added insurance cost would be borne by banks that likely will pay higher premiums to FDIC for its coverage, the New York Times reported today.
Demographic data from the last U.S. Census, now 8 years old, shows that of Sanatoga village’s 7,734 residents, roughly 11 percent (850 people) were age 65 and older, and another 18.9 percent (1,461 people) were age 45-64. National statistics indicate the greatest concentration of personal wealth usually is found in households whose primary occupants are age 50 and older.