Deposit insurance coverage under the Federal Deposit Insurance
Corporation rules.
The FDIC-short for the
Federal Deposit Insurance Corporation
– is an independent
agency of the United States government. The FDIC protects depositors against the loss of
their insured 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 to at least $250,000.
From the Federal Deposit Insurance
Corporation’s first day of operation in 1933
through today, not one depositor has ever
lost a penny of FDIC insured deposits
Here are some ways to make sure your deposits are covered to the
maximum extent possible.
Basic insurance
The standard maximum deposit insurance amount is $250,000 per depositor per insured
depository institution for each account ownership category.
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Deposits in different institutions are insured separately. However, if an institution has
one or more branches, the main office and all branch offices are considered to be
one institution.
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Deposits maintained in different categories of legal ownership at the same bank can be separately insured, making it possible to have deposits of more than $250,000 at one insured bank and still be fully insured. See the accompanying chart for examples that can increase your coverage to as much as $3,000,000 or greater.
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Maximize Your FDIC Insurance Coverage!
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EXAMPLES
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HUSBAND AND WIFE
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SINGLE ACCOUNTS:
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| Husband |
$ 250,000 |
| Wife |
$ 250,000 |
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JOINT ACCOUNT:
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| Husband & Wife |
$ 500,000 |
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REVOCABLE TRUST ACCOUNTS:
|
| Husband POD Wife |
$ 250,000 |
| Wife POD Husband |
$ 250,000 |
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CERTAIN RETIREMENT ACCOUNTS:
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| Husband IRA |
$ 250,000 |
| Wife IRA |
$ 250,000 |
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$ 2,000,000 |
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HUSBAND, WIFE AND TWO CHILDREN
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SINGLE ACCOUNTS:
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| Husband |
$ 250,000 |
| Wife |
$ 250,000 |
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JOINT ACCOUNT:
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| Husband & Wife |
$ 500,000 |
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REVOCABLE TRUST ACCOUNTS:
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| Husband POD 2 Children |
$ 500,000 |
| Wife POD 2 Children |
$ 500,000 |
| Husband POD Wife |
$ 250,000 |
| Wife POD Husband |
$ 250,000 |
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CERTAIN RETIREMENT ACCOUNTS:
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| Husband IRA |
$ 250,000 |
| Wife IRA |
$ 250,000 |
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$ 3,000,000 |
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HUSBAND, WIFE AND ONE CHILD
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SINGLE ACCOUNTS:
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| Husband |
$ 250,000 |
| Wife |
$ 250,000 |
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JOINT ACCOUNT:
|
| Husband & Wife |
$ 500,000 |
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REVOCABLE TRUST ACCOUNTS:
|
| Husband POD Child |
$ 250,000 |
| Wife POD Child |
$ 250,000 |
| Husband POD Wife |
$ 250,000 |
| Wife POD Husband |
$ 250,000 |
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CERTAIN RETIREMENT ACCOUNTS:
|
| Husband IRA |
$ 250,000 |
| Wife IRA |
$ 250,000 |
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$ 2,500,000 |
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PARENT AND ONE CHILD
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SINGLE ACCOUNTS:
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| Parent |
$ 250,000 |
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REVOCABLE TRUST ACCOUNTS:
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| Parent POD Child |
$ 250,000 |
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CERTAIN RETIREMENT ACCOUNTS:
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| Parent IRA |
$ 250,000 |
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$ 750,000 |
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“The ownership categories shown above have specific requirements that must be met in order to receive the coverage indicated.
Failure to meet these requirements will result in funds being aggregated, and insured in the single ownership category up to the
basic insurance amount, $250,000. Information on these requirements can be obtained from the FDIC at the website address
indicated on the back of this brochure”.
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Retirement accounts
Retirement account deposits are insured separately up to $250,000. These include IRAs,
Keogh plan accounts, 457 plan accounts and certain other self-directed accounts.
INSURED…OR NOT?
FDIC-Insured
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Checking Accounts, including money market deposit accounts, NOW Accounts
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Savings Accounts including passbook accounts
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Certificates of Deposit
- Certain Retirement Accounts
- Cashier’s checks, money orders, other official items issued by a bank
Not FDIC-Insured
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Investments in mutual funds (stock, bond or mutual funds) whether purchased from a bank, brokerage or dealer
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Annuities, life insurance policies (underwritten by insurance companies but sold at some banks)
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Stocks, bonds, Treasury securities or other investment products, whether purchased
through a bank or a broker/dealer.
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Contents of a safe deposit box
FDIC insured banks
FDIC insured banks must display the official sign at each teller window where deposits are
received. Look for this symbol of safety at your bank:
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