Alyssa Lane
Banks do insure your money, but only under certain conditions. The Federal Deposit Insurance Corporation (FDIC) was created in 1933 to insure deposits in the event of bank failure. FDIC insurance covers depositors' accounts at each insured bank, including checking and savings accounts, money market deposit accounts (MMDAs), and certificates of deposit (CDs). The standard deposit insurance amount is $250,000 per depositor, per FDIC-insured bank, per ownership category. However, FDIC insurance does not cover all financial products and services offered by banks, such as non-deposit investments or investment products. To determine if your money is insured by the FDIC, you can use the FDIC's BankFind tool or Electronic Deposit Insurance Estimator (EDIE).
| Characteristics | Values |
|---|---|
| Who insures your money? | Federal Deposit Insurance Corporation (FDIC) |
| Who is eligible for FDIC insurance? | Depositors at FDIC-insured banks |
| What is the standard deposit insurance amount? | $250,000 per depositor, per FDIC-insured bank, per ownership category |
| Are there different ownership categories? | Yes, including single accounts, joint accounts, retirement accounts, etc. |
| How do I know if my bank is FDIC-insured? | Ask a bank representative, look for the FDIC sign, or use the FDIC's BankFind tool |
| Are all financial products at a bank covered by FDIC insurance? | No, only certain deposit products like checking accounts, savings accounts, and certificates of deposit (CDs) |
| What if I have more than $250,000 in the bank? | You can open an account at another FDIC-insured bank or consider the IntraFi Network Deposits program |
| What if my bank fails? | FDIC insurance will protect your deposits up to the insured amount |
| Do I need to apply for FDIC insurance? | No, coverage is automatic when you open a deposit account at an FDIC-insured bank |
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What You'll Learn
The Federal Deposit Insurance Corporation (FDIC)
The FDIC's role is to protect your money in the event of a bank failure. It only insures your money if it is in a deposit account at an FDIC-insured bank. Banks offer some financial products and services that are not deposits, and the FDIC does not insure them. These include stocks, bonds, mutual funds, insurance and annuity products, and the contents of safe deposit boxes.
Deposit products that are insured by the FDIC include checking accounts, savings accounts, money market deposit accounts (MMDAs), and certificates of deposits (CDs). The standard deposit insurance amount is $250,000 per depositor, per FDIC-insured bank, per ownership category. This limit has been increased several times since its start in 1933, and according to the FDIC, "no depositor has ever lost a penny of FDIC-insured funds".
You can determine if a bank is FDIC-insured by asking a bank representative, looking for the FDIC sign at your bank, or using the FDIC's BankFind tool. Coverage is automatic when you open a deposit account at an FDIC-insured bank. To calculate your specific deposit insurance coverage, you can use the FDIC's Electronic Deposit Insurance Estimator (EDIE).
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FDIC insurance covers depositors' accounts
Banks offer financial products and services that are not considered deposits, and these are not insured by the Federal Deposit Insurance Corporation (FDIC). FDIC insurance covers traditional deposit accounts, such as checking and savings accounts, money market deposit accounts (MMDAs), and certificates of deposit (CDs). Coverage is automatic when you open a deposit account at an FDIC-insured bank, and there is no need to apply for it separately. The standard deposit insurance amount is $250,000 per depositor, per FDIC-insured bank, per ownership category. Ownership categories refer to who owns the account, with distinctions between single and joint accounts. Single accounts are owned by one person, while joint accounts are shared by two or more people.
If you have multiple accounts at the same insured bank, your coverage limit may exceed $250,000 if your funds are in different ownership categories. Additionally, if you have a joint account with another person, your account can be insured for up to a total of $500,000, with $250,000 coverage for each person. To determine if a bank is FDIC-insured, you can ask a bank representative, look for the FDIC sign, or use the FDIC's BankFind tool.
If you are concerned about insuring money over $250,000, there are a few options. You can open an account at a second FDIC member bank, ensuring your total balance across both accounts does not exceed the limit. Alternatively, the IntraFi Network Deposits program allows you to get FDIC insurance on millions of dollars by keeping your money at one bank that is part of the IntraFi Network, which then funnels your money into deposit accounts at other network banks.
It is important to note that FDIC insurance only applies in the event of a bank failure. It does not cover lost or stolen prepaid cards or if the prepaid card provider declares bankruptcy. To calculate your specific deposit insurance coverage, you can use the FDIC's Electronic Deposit Insurance Estimator (EDIE).
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FDIC insurance limit is $250,000 per depositor
The Federal Deposit Insurance Corporation (FDIC) insures up to $250,000 per depositor, per FDIC-insured bank, and per ownership category. This means that if you have multiple accounts in different ownership categories, you may qualify for more than $250,000 in FDIC insurance coverage. For example, if you have a single ownership account and a joint ownership account at the same bank, you will be insured for up to $250,000 for your single ownership account deposits and an additional $250,000 for your joint ownership account deposits. Similarly, if you have accounts in different ownership categories at two separate FDIC-insured banks, you will be insured for up to $250,000 at each bank.
The FDIC insurance limit of $250,000 per depositor is the standard amount provided by the FDIC. This limit is per depositor, per institution, and per ownership category. The FDIC provides deposit insurance to protect your money in the event of a bank failure. Since its founding in 1933, no depositor has lost any FDIC-insured funds.
It's important to note that FDIC insurance only covers deposit accounts, such as checking accounts, savings accounts, money market deposit accounts (MMDAs), and certificates of deposit (CDs). It does not cover all financial products and services offered by banks. To determine if your bank is FDIC-insured, you can use the FDIC's BankFind tool or look for the FDIC sign at your bank.
If you have more than $250,000 in the bank, you can consider opening an account at a second FDIC-insured bank or exploring the IntraFi Network Deposits program, which allows you to get FDIC insurance on millions of dollars through a network of financial institutions without opening multiple accounts at different banks.
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FDIC deposit insurance coverage only applies when a bank fails
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 a bank failure. FDIC deposit insurance coverage only applies when a bank fails. It does not apply if a prepaid card is lost or stolen or if the prepaid card provider declares bankruptcy.
FDIC deposit insurance is automatic for any deposit account opened at an FDIC-insured bank. This includes checking and savings accounts, money market deposit accounts (MMDAs), and certificates of deposit (CDs). The standard deposit insurance amount is $250,000 per depositor, per FDIC-insured bank, per ownership category. For example, if you have two different types of retirement accounts that qualify as Certain Retirement Accounts at the same insured bank, the FDIC will insure the total balance of your deposits up to $250,000.
If you want your funds to be insured by the FDIC, you must place your funds in a deposit account at an FDIC-insured bank and ensure that your deposit does not exceed the insurance limit for that ownership category. You can determine if a bank is FDIC-insured by asking a bank representative, looking for the FDIC sign at your bank, or using the FDIC's BankFind tool.
It is important to note that FDIC deposit insurance does not cover all financial products offered by banks. Some products that are not insured by the FDIC include non-deposit investment products, such as stocks, bonds, mutual funds, and similar types of securities; money invested in mutual funds; and life insurance policies, annuities, or securities.
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FDIC-insured banks
The Federal Deposit Insurance Corporation (FDIC) is an independent agency created by the US Congress to maintain stability and public confidence in the nation's financial system. The FDIC insures deposits; examines and supervises financial institutions for safety, soundness, and consumer protection; makes large and complex financial institutions resolvable; and manages receiverships.
The FDIC provides deposit insurance to protect your money in the event of a bank failure. FDIC deposit insurance only covers certain deposit products, such as checking and savings accounts, money market deposit accounts (MMDAs), and certificates of deposit (CDs). The standard deposit insurance amount is $250,000 per depositor, per FDIC-insured bank, per ownership category. Coverage is automatic when you open one of these accounts at an FDIC-insured bank.
To determine if a bank is FDIC-insured, you can ask a bank representative, look for the FDIC sign at your bank, or use the FDIC's BankFind tool, which allows you to access detailed information about all FDIC-insured institutions, including branch locations, the bank's official website, and its current operating status.
If you have more than $250,000 in the bank, you can consider opening an account at a second FDIC member bank or participating in the IntraFi Network Deposits program, which allows you to get FDIC insurance on millions of dollars through a network of financial institutions without having to open multiple accounts.
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Frequently asked questions
Banks do insure your money, but only if it is in a deposit account at an FDIC-insured bank. FDIC insurance covers up to $250,000 per depositor, per FDIC-insured bank, and per ownership category.
You can ask a bank representative, look for the FDIC sign at your bank, or use the FDIC's BankFind tool to access detailed information about all FDIC-insured institutions.
FDIC insurance covers traditional bank deposit products, including checking and savings accounts, money market deposit accounts, certificates of deposit (CDs), and more. It does not cover investment products such as mutual funds, stocks, bonds, or annuities.
You can open accounts with different ownership categories, such as joint accounts or trusts, or use bank networks like IntraFi Network Deposits to spread your deposits across multiple FDIC-insured banks.
You can use the FDIC's Electronic Deposit Insurance Estimator (EDIE) to calculate your specific deposit insurance coverage. You can also call the FDIC directly or speak to your bank to confirm your coverage.
