The Federal Deposit Insurance Corp., the entity that guarantees bank deposits, has issued an opinion stating that funds on gift cards and other stored value cards qualify as deposits and will be covered under FDIC insurance if those funds have been placed at an insured depository institution.
I’d love to file this under “You know it’s gotten bad when …” but we’re too far past that. Wonder who will be the first retailer to plug this into its ads? “The latest in worry-free shopping: You can put up to $250K on a gift card! Guaranteed by the FDIC even if we bite the dust!”