How the Federal Deposit Insurance Corporation (FDIC) protects you
What is the FDIC?
The Federal Deposit Insurance Corporation provides deposit insurance, which guarantees the safety of deposits in member banks, currently up to $250,000 per depositor per bank. Since the start of FDIC insurance on January 1, 1934, no depositor has lost a single cent of insured funds because of a failure.
What is FDIC Insurance?
FDIC insurance protects you from losses if your bank goes sour. When you keep money in an FDIC insured account, you won’t lose your money if the bank fails. But, FDIC insurance is not unlimited. You can increase the FDIC insurance coverage available to you by using multiple banks.
How can I check whether my deposits are insured by FDIC?
The FDIC insures deposits in most, but not all banks. Deposits in separate branches of an insured bank are not separately insured. Deposits in one insured bank are insured separately from deposits in another insured bank. To find out if your money is insured, visit EDIE. EDIE lets consumers and bankers know, on a per-bank basis, how the insurance rules and limits apply to a depositor's specific group of deposit accounts—what's insured and what portion, if any, exceeds coverage limits at that bank.
If I have more than $250,000 at one insured bank, can I still be fully covered?
You may qualify for more than $250,000 in coverage at one insured bank if you own deposit accounts in different ownership categories.
- Single Account – This account is owned by one person and titled in that person's name only, with no beneficiaries.
- Joint account - This account is owned by two or more people and titled jointly in the co-owners' names only, with no beneficiaries. If all co-owners have equal rights to withdraw money from a joint account, a co-owner's shares of all joint accounts at the same insured bank are added together and the total is insured up to $250,000. If a couple has a joint checking account and a joint savings account at the same insured bank, each co-owner's shares of the two accounts are added together and insured up to $250,000 per owner, providing up to $500,000 in coverage for the couple's joint accounts.
- Revocable Trust Account
– This account is held as a Payable on Death (POD), In Trust For Account (ITF), or it’s established in the name of a formal revocable trust. POD and ITF Accounts are the most common form of revocable trust deposits. These informal revocable trusts are created when the account owner signs an agreement stating that the deposits will be payable to one or more beneficiaries upon the owner's death
- Revocable Trust Deposits with Five or Fewer Beneficiaries Each owner's share of deposits is insured up to $250,000 for each beneficiary, i.e., $250,000 times the number of different beneficiaries.
- Revocable Trust Deposits with Six or More Beneficiaries - Determining coverage for living trust accounts that have six or more beneficiaries can be complicated. Contact the FDIC at (877) 275-3342 if you need assistance in determining this coverage.