Jeffrey Wade
Bank of America customers may be wondering if their money is insured by the bank. The Federal Deposit Insurance Corporation (FDIC), an independent agency of the United States government, insures deposits in checking accounts, savings accounts, money market savings accounts, and Certificates of Deposit (CDs) up to $250,000 per depositor, per insured bank, and for each account ownership category. Bank of America customers can calculate their insurance coverage using the FDIC's online Electronic Deposit Insurance Estimator (EDIE).
| Characteristics | Values |
|---|---|
| Type of Accounts Insured | Checking accounts, savings accounts, money market savings accounts, Certificates of Deposit (CDs), bank individual retirement accounts (IRAs) |
| Amount insured per account ownership category | $250,000 |
| Insurance provider | Federal Deposit Insurance Corporation (FDIC) |
| Website | www.fdic.gov |
| Phone number | 1.877.ASK.FDIC (1.877.275.3342) |
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What You'll Learn
- Bank of America's deposits are insured by the Federal Deposit Insurance Corporation (FDIC)
- FDIC insurance covers all types of deposit accounts
- FDIC insurance covers bank individual retirement accounts (IRAs)
- Bank of America no longer participates in the FDIC Transaction Account Guarantee Program
- Calculate your insurance coverage using the FDIC Electronic Deposit Insurance Estimator (EDIE)
Bank of America's deposits are insured by the Federal Deposit Insurance Corporation (FDIC)
The FDIC's primary purpose is to prevent bank runs, where depositors rush to withdraw their funds due to fears of bank failure. By insuring deposits, the FDIC provides assurance that even if a bank fails, depositors will get their money back, thus maintaining confidence in the banking system. This insurance is backed by the full faith and credit of the United States government, ensuring that the FDIC can honour its commitments.
While Bank of America no longer participates in the FDIC's Transaction Account Guarantee Program as of January 1, 2010, its deposits continue to be covered by the FDIC's basic deposit insurance rules. This means that funds in non-interest-bearing transaction accounts are insured up to $250,000 per depositor, per insured bank, and for each account ownership category.
To determine their level of insurance coverage, Bank of America customers can use the FDIC's online Electronic Deposit Insurance Estimator (EDIE) tool, accessible at https://edie.fdic.gov/. This tool allows customers to calculate their specific insurance coverage based on their account details.
In summary, the FDIC's insurance coverage provides a significant level of protection for depositors at Bank of America, ensuring that their funds are secure up to the specified limits.
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FDIC insurance covers all types of deposit accounts
Bank of America account holders can rest assured that their deposits are insured. The Federal Deposit Insurance Corporation (FDIC) is an independent agency of the United States government that provides deposit insurance to protect your money in the event of bank failure. FDIC insurance covers deposits in all types of accounts at FDIC-insured banks, including checking accounts, savings accounts, money market savings accounts, and Certificates of Deposit (CDs). Coverage is automatic when you open one of these accounts at an FDIC-insured bank.
FDIC deposit insurance covers up to $250,000 per depositor, per FDIC-insured bank, for each account ownership category. This means that if you have multiple accounts in different ownership categories at the same bank, you may qualify for more than $250,000 in FDIC deposit insurance coverage. For example, if you have a single ownership account and a joint ownership account at the same FDIC-insured bank, you will be insured for up to $250,000 for each of these accounts.
Individual retirement accounts (IRAs) are also insured up to $250,000 per owner, separately from other types of accounts. This is because IRAs are considered a different account ownership category. If you have both a single ownership account and an IRA at the same bank, you will be insured for up to $250,000 for your single ownership account and up to $250,000 for your IRA.
It is important to note that FDIC insurance does not cover non-deposit investment products, even those offered by FDIC-insured banks. Additionally, FDIC deposit insurance does not cover default or bankruptcy of any non-FDIC-insured institution. To calculate your specific insurance coverage, you can use the FDIC's online Electronic Deposit Insurance Estimator (EDIE).
In summary, FDIC insurance provides important protection for your money by insuring deposits in all types of accounts at FDIC-insured banks. Bank of America account holders can feel confident that their deposits are insured up to the specified limits, providing peace of mind and security for their financial endeavours.
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FDIC insurance covers bank individual retirement accounts (IRAs)
The Federal Deposit Insurance Corporation (FDIC) is an independent agency of the United States government. It provides deposit insurance, which covers customer deposits held at FDIC-insured banks or savings and loan associations, including assets held in certain retirement accounts. FDIC insurance covers traditional deposit accounts, and depositors do not need to apply for FDIC insurance. Coverage is automatic whenever a deposit account is opened at an FDIC-insured bank or financial institution.
It is important to note that not all IRA accounts are covered by FDIC insurance. For example, IRA investments held in mutual funds, exchange-traded funds (ETFs), or individual stocks are not covered. Additionally, FDIC insurance does not cover defined benefit plan deposits, which are insured as employee benefit plan accounts.
You can calculate your insurance coverage using the FDIC’s online Electronic Deposit Insurance Estimator (EDIE). This tool will help you understand your specific coverage situation.
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Bank of America no longer participates in the FDIC Transaction Account Guarantee Program
Bank of America accounts are insured by the Federal Deposit Insurance Corporation (FDIC), an independent agency of the United States government. The FDIC protects depositors against the loss of their insured deposits in the event that an FDIC-insured bank or savings association fails. FDIC insurance covers all types of deposit accounts, including checking accounts, savings accounts, money market savings accounts, and Certificates of Deposit (CDs), as well as bank individual retirement accounts (IRAs).
As of January 1, 2010, Bank of America no longer participates in the FDIC's Transaction Account Guarantee Program. This program guaranteed funds held in non-interest-bearing transaction accounts in full. However, coverage under the FDIC's basic deposit insurance rules still applies, and these funds are now insured up to $250,000 per depositor, per insured bank, for each account ownership category under the FDIC's general deposit insurance rules. This includes deposits in checking accounts, savings accounts, money market savings accounts, CDs, and IRAs.
The FDIC's online Electronic Deposit Insurance Estimator (EDIE) can be used to calculate insurance coverage. This tool is available on the FDIC website, and customers can also contact the FDIC directly for more information. It is important to note that Bank of America customers who have not accessed their accounts for an extended period (typically 3 years or more) may receive a notification that their account is considered abandoned and may be turned over to the state under escheat laws.
While Bank of America no longer participates in the Transaction Account Guarantee Program, the FDIC's basic deposit insurance rules provide coverage for funds held in various account types. Customers can rest assured that their deposits are protected and insured by the FDIC up to the specified limits. It is recommended that Bank of America customers review their account information and access FAQs to understand the specific insurance coverage and any applicable limitations.
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Calculate your insurance coverage using the FDIC Electronic Deposit Insurance Estimator (EDIE)
The Federal Deposit Insurance Corporation (FDIC) is an independent agency of the United States government that protects you against losing 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.
The FDIC's Electronic Deposit Insurance Estimator (EDIE) is an online tool that calculates the insurance coverage for different types of accounts, including:
- Personal Accounts—deposits held by people in single accounts, joint accounts, payable on death (POD)/in trust for (ITF) accounts, living trust accounts, and Individual Retirement Accounts (IRAs).
- Business Accounts—deposits held by corporations, partnerships, and organizations, both for-profit and not-for-profit.
- Government Accounts—deposits held by public units such as school districts, cities, municipalities, counties, and states.
EDIE can be used to calculate the insurance coverage of all types of deposit accounts offered by an FDIC-insured bank. This includes checking accounts, savings accounts, money market savings accounts, and Certificates of Deposit (CDs), which are insured up to $250,000 per depositor, per insured bank, for each account ownership category.
For trust accounts, each owner is insured up to $250,000 for each unique eligible beneficiary named or identified in the trust, with a maximum of $1,250,000 when five or more beneficiaries are named. As of April 1, 2024, this $1,250,000 limit applies to all trust accounts held at the same bank, including POD/ITF accounts, formal revocable trusts, and irrevocable trusts.
Additionally, EDIE does not calculate coverage for irrevocable trusts with a bank acting as a trustee or for court-ordered trusts. For these types of accounts, you can call the FDIC at 1-877-ASK-FDIC (1-877-275-3342) for more information.
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Frequently asked questions
Yes, deposits in checking accounts, savings accounts, money market savings accounts, and certificates of deposit (CDs) are insured up to $250,000 per depositor, per insured bank, and for each account ownership category under the FDIC's general deposit insurance rules.
You can calculate your insurance coverage using the FDIC's online Electronic Deposit Insurance Estimator (EDIE) at www.fdic.gov/edie.
The Federal Deposit Insurance Corporation (FDIC) is an independent agency of the United States government. If an FDIC-insured bank or savings association fails, the FDIC protects depositors against the loss of their insured deposits.
