FDIC Approves Clarification of Regulations

The Federal Deposit Insurance Corp. approved rules Tuesday that make it easier for banks and customers to understand deposit insurance regulations.

The FDIC directors agreed unanimously to provide examples showing how deposit insurance applies to each of three basic types of accounts: individual, joint and payable-on-death accounts.

Also, the board voted to give the FDIC more flexibility in insuring deposits made by law firms, real estate agents and other businesses on behalf of their customers.

The FDIC OKd a six-month grace period for beneficiaries to rearrange accounts after a depositor’s death, to help them avoid going over the $100,000 insurance limit.

The changes will take effect July 1. The FDIC guarantees individual deposits up to $100,000 per account.