(MONEY Magazine) – Having lost money when my savings and loan went under, I applaud the March Editor's Notes proposal that banks and S&Ls be required to notify depositors whose accounts exceed the FDIC insurance limit. Financial institutions are quick to let depositors know when they are overdrawn. But there is currently no notification when your deposits exceed the insurance guarantees. I had three personal pension plan instruments at Columbia Savings & Loan when the Resolution Trust Corporation took it over. The RTC permitted me to * deposit additional funds, and when I asked a bank representative whether each of my accounts was insured for a $100,000 limit, she answered erroneously that, yes, retirement accounts were covered individually. Ultimately, after the RTC sold Columbia to American Savings, I was told that my three accounts totaled $114,000 but that FDIC insurance would cover only $100,000. Martin A. Brower Newport Beach, Calif.

What amazes me is that we get reams of information on what is in a Twinkie, yet it's so hard to get an accurate explanation of FDIC coverage. Laura Germane Fenton, Mich.

I believe all banking personnel who provide advice to the public should be required to complete a standardized national test and to take continuing educational classes. People in the insurance and securities industries must pass these types of tests. People in banking should too. Eugene Wood Jessup, Md.

Many insurance policies cover 80% of a loss, not the entire amount. Why shouldn't FDIC insurance do the same thing? The bulk of your savings would remain insured by the government, and you would have a big incentive to avoid risky banks. Mark Warda Clearwater, Fla.