Janie has a joint account with her mother with a balance of $562,000. Based on $250,000 of Federal Deposit Insurance Corporation coverage, what amount of Janie’s savings would not be covered by deposit insurance?

Janie holds joint account with her mother that has a balance of $562,000. They are covered up to $250,000 each under Federal Deposit Insurance Corporation.

It is assumed by FDIC that all co-owners' shares are equal.

So, Janie's share in the balance = 562,000 ÷ 2

= $281,000

Amount insured = $250,000

Uninsured amount = 281,000 - 250,000

= $31,000

Therefore, Janie's savings worth $31,000 will not be covered by deposit insurance.

abiolataiwo2015 abiolataiwo2015 · Answer 2 · 2021-09-04T05:11:36+02:00

The amount of Janie's savings that would not be covered by deposit insurance is $37,500

First step is to determine her Portion of her joint account

Using this formula

Portion of her joint account=50%* Joint account balance

Let plug in the formula

Portion of joint account=0.50 × $575,000

Portion of joint account=$287,500

Now let determine the amount of her savings that would not be covered by deposit insurance

Using this formula

Uncovered portion of her joint account=Uninsured portion of joint account – Federal Deposit Insurance Corporation coverage

Let plug in the formula

Uncovered portion of her joint account= =$287,500 – $250,000

Uncovered portion of her joint account=$37,500

Inconclusion The amount of Janie's savings that would not be covered by deposit insurance is $37,500

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