I have money in different banks and savings and loan associations that are insured by the FDIC and FSLIC, respectively. In the event of a failure, would each bank and S'L pay off on each account?" -- C. L.
Yes. Each individual account in an insured bank or S&L is handled separately. Even individual accounts in the same bank or S&L would be handled separately. Thus, you could have one account with deposits insured up to $100, 000. Your wife could have a different account in the same bank or S&L, and her deposits would also be insured up to $100,000. A joint account with you and your wife would include an additional $100,000 coverage. Moving accounts to different banks or S&Ls diversifies the risk, but payoffs wou ld not be affected.