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FDIC Insurance FAQs
- What is the basic insurance limit?
- Which accounts have unlimited insurance?
- What does the FDIC insure?
- I have interest-bearing accounts in multiple categories at a financial institution. The combined value of the accounts exceeds the basic insurance amount of $250,000. Are all of my funds insured?
- Where can I get more information about FDIC insurance?
What is the basic insurance limit?
Effective July 21, 2010, the FDIC's basic insurance limit was permanently raised to $250,000 per depositor. The insurance coverage limit applies per depositor, per insured bank for each ownership category. Certain retirement accounts, such as individual retirement accounts (IRAs), are also insured up to $250,000 per depositor per insured bank. If you have a combined amount of $250,000 or less in all of your deposit account categories at the same insured bank, you do not need to worry about your insurance coverage, as your deposits are fully insured.
Which accounts have unlimited insurance?
A new, temporary insurance category fully insures all funds, regardless of the dollar amount, in consumer and business checking accounts that pay no interest. The new coverage begins December 31, 2010, and is in effect for two years through December 31, 2012. This new unlimited coverage applies to all federally insured institutions, and is separate from and in addition to the FDIC's general deposit insurance coverage. Checking accounts that pay interest will still be insured up to $250,000 under the FDIC's general deposit insurance rules. Official FDIC Notice of Changes. To learn more, contact the FDIC toll-free at 1-877-275-3342 from 8:00 AM until 8:00 PM ET or visit the FDIC website.
What does the FDIC insure?
The Federal Deposit Insurance Corporation (FDIC) is an independent agency of the United States government that protects the funds depositors place in banks and savings associations. FDIC insurance is backed by the full faith and credit of the United States government. Since the FDIC was established in 1933, no depositor has ever lost a single penny of FDIC-insured funds.
The FDIC guarantees all traditional types of deposit accounts (interest-bearing checking, savings, money market deposit accounts and CDs) up to $250,000 per depositor and guarantees bank individual retirement accounts (IRAs) up to $250,000 per owner. Non-interest bearing checking accounts are fully insured, regardless of dollar amount, from December 31, 2010 through December 31, 2012. Investment products (mutual funds, annuities, life insurance policies, stocks and bonds) are not FDIC insured, may lose value, and are not bank guaranteed.
I have interest-bearing accounts in multiple categories at a financial institution. The combined value of the accounts exceeds the basic insurance amount of $250,000. Are all of my funds insured?
For customers with interest-bearing accounts in multiple ownership categories at a single financial institution, FDIC coverage is based on the titling of the accounts and the category of accounts, not the number of accounts. Categories of ownership include single or individual, joint, revocable and irrevocable trust, business, certain retirement accounts and others. For example, a customer who owns an interest-bearing checking account and a CD titled in his or her own name as single owner will receive a total of $250,000 of combined coverage for both accounts. But if that same customer also has a joint account (which is a separate category from individual accounts), he or she could receive an additional $250,000 in deposit insurance for the funds held in the joint account.
Where can I get more information about FDIC insurance?
We welcome the opportunity to speak to you about the safety provided by FDIC insurance. See your Preferred Banker for details. You can also contact the FDIC toll free at 1-877-ASK-FDIC (1-877-275-3342), or visit Electronic Deposit Insurance Estimator (EDIE) for the most recent information.
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