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:
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.