FDIC Deposit Insurance Coverage
FDIC Deposit Insurance Coverage
On July 21, 2010 the FDIC permanently increased its insurance coverage on deposit accounts from $100,000 to $250,000. Under the FDIC's rules, up to $250,000 in deposit insurance will be provided for the money a consumer has at each insured institution.
The FDIC insurance coverage limit applies per depositor, per insured depository institution for each account ownership category. Consumers can find additional information regarding FDIC’s deposit insurance coverage through the use of the FDIC’s Electronic Deposit Insurance Estimator (EDIE) and deposit insurance publications located on the FDIC’s website “Are My Deposits Insured?”
The FDIC has adopted changes to simplify the rules for determining the coverage available on revocable trust accounts - commonly called payable-on-death accounts or living trust accounts. Under the revised rules, coverage for the vast majority of account owners generally is based on the number of beneficiaries named in a depositor's revocable trust account(s).
What is the FDIC?
The FDIC (Federal Deposit Insurance Corporation) is an independent agency of the United States government that protects you against the loss of your deposits if an FDIC-insured bank or savings association fails. FDIC insurance is backed by the full faith and credit of the United States government. Since the FDIC's creation in 1933, no depositor has ever lost even one penny of FDIC-insured funds.
What types of accounts are eligible for FDIC insurance?
FDIC insurance covers all deposit accounts at insured banks
and savings associations, including checking, NOW, savings accounts, money
market deposit accounts and certificates of deposit (CDs) up to the insurance
limit. The FDIC does not insure the money you invest in stocks, bonds, mutual
funds, life insurance policies, annuities or municipal securities, even if you
purchased these products from an insured bank or savings association.
How can I keep my deposits within FDIC insurance limits?
If you and your family have $250,000 or less in all of your deposit accounts at the same insured bank or savings association, you do not need to worry about your insurance coverage — your deposits are fully insured. A depositor can have more than $250,000 at one insured bank or savings association and still be fully insured provided the accounts meet certain requirements. In addition, federal law provides for insurance coverage of up to $250,000 for certain retirement accounts.
What are the basic FDIC coverage limits?*
Single Accounts (owned by one person): $250,000 per owner
Joint Accounts (two or more persons): $250,000 per co-owner
IRAs and other certain retirement accounts: $250,000 per owner
Revocable trust accounts: Each owner is insured up to $250,000 for the interests of each beneficiary, subject to specific limitations and requirements
*These deposit insurance coverage limits refer to the total of all deposits that account holders have at each FDIC-insured bank. The listing above shows only the most common ownership categories that apply to individual and family deposits, and assumes that all FDIC requirements are met.
Is it possible to have more than $250,000 at one insured bank and still be fully covered?
You may qualify for more than $250,000 in coverage at one
insured bank or savings association if you own deposit accounts in different
ownership categories. The most common account ownership categories for
individual and family deposits are single accounts, joint accounts, revocable
trust accounts and certain retirement accounts.
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