FDIC insurance became a hot topic following the failures of two large regional banks earlier this year. While you may see “Member FDIC” or hear about FDIC insurance any time you walk into a bank, view your account statement or see a banking ad, you may not have considered what it means for a financial institution to be FDIC insured.
Below you’ll find a few key things to know about FDIC insurance and find links to helpful resources.
What is FDIC insurance?
The Federal Deposit Insurance Corporation (FDIC) is an independent agency that aims to maintain stability and confidence in the U.S. financial system. Any financial institution that is a member of the FDIC automatically provides insurance on certain customers’ funds up to established limits in the unlikely event of a bank failure.
FDIC insurance covers: checking accounts, savings accounts, certificates of deposit (CDs), money market deposit accounts, and negotiable order of withdrawal (NOW) accounts, as well as cashier’s checks, money orders and other official items issued by a bank.
FDIC insurance does not cover: investment accounts, mutual funds, crypto assets, life insurance, annuities, municipal securities, U.S. Treasury bills (these are backed by the U.S. government) or bonds, or safe deposit boxes and their contents.
How much will FDIC insurance cover?
The standard insurance amount is $250,000 per depositor, per insured bank, for each account ownership category. All deposits an accountholder has in the same ownership category at the same bank are added together and insured up to the standard insurance amount. However, because there are several categories of account ownership, it is possible to maximize your FDIC coverage at one financial institution beyond $250,000.
Some of the FDIC’s account ownership categories include:
- Single accounts (owned by one person)
- Joint accounts (owned by two or more people)
- Certain retirement accounts (including Individual Retirement Accounts, or IRAs)
- Various types of Trust accounts
- Employee benefit plan accounts
- And more. View a full list on the FDIC’s website.
Additional resources on FDIC insurance coverage
- The FDIC has an online Electronic Deposit Insurance Estimator (EDIE) tool that can help you determine, on a per-bank basis, how the agency’s insurance rules and limits will apply to your deposit accounts.
- View the FDIC’s frequently asked questions page to learn more about deposit insurance.
Visit with your banker at any Bankers Trust location to discuss ways to maximize your FDIC insurance coverage specific to your financial situation.