Paul Sanchez
The Federal Deposit Insurance Corporation (FDIC) is an independent federal agency that insures the money that Americans put into their commercial bank accounts. FDIC insurance is automatic for any deposit account opened at an FDIC-insured bank, and deposits are insured up to $250,000 per depositor, per FDIC-insured bank, and per ownership category. Bank of America is an FDIC-insured bank, meaning that it offers FDIC insurance on its deposit accounts, including checking, savings, money market savings, and certificates of deposit (CDs) accounts.
| Characteristics | Values |
|---|---|
| Bank of America's participation in the FDIC Transaction Account Guarantee Program | Ended on January 1, 2010 |
| Maximum amount insured by the FDIC | $250,000 |
| Deposit accounts covered by FDIC insurance | Checking, savings, money market savings, and CDs |
| Bank individual retirement accounts (IRAs) insured by the FDIC | Yes, separately insured up to $250,000 per owner |
| Need to apply for FDIC deposit insurance | No, coverage is automatic when a deposit account is opened at an FDIC-insured bank |
| FDIC insurance coverage limit per depositor, per FDIC-insured bank, and per ownership category | $250,000 |
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What You'll Learn
Bank of America's FDIC insurance
Bank of America offers FDIC insurance to its customers. The Federal Deposit Insurance Corporation (FDIC) is an independent agency of the United States government. FDIC insurance covers all types of deposit accounts (checking, savings, money market savings, and CDs), as well as bank individual retirement accounts (IRAs). The FDIC insures up to $250,000 per depositor, per institution, and per ownership category. This means that a joint account with two owners is insured up to $500,000.
If you have more than $250,000 in the bank, you can get additional coverage by opening an account at a second FDIC-member bank. You can also get more than $250,000 in coverage at the same financial institution as long as deposits are in different ownership categories. For example, you could have a checking account and a savings account at the same bank, with each account insured for up to $250,000. You can calculate your insurance coverage using the FDIC's online Electronic Deposit Insurance Estimator (EDIE).
It is important to note that FDIC insurance only covers deposits made at member banks. It does not cover securities, mutual funds, life insurance policies, or annuities, even if they were purchased at an insured bank. Additionally, FDIC insurance does not cover losses due to fraud or theft.
Since its founding in 1933, the FDIC states that no depositor has lost a single cent of their insured deposit. This insurance is backed by the full faith and credit of the United States government.
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FDIC insurance covers
It's important to note that FDIC insurance does not cover non-deposit investment products, such as stocks, bonds, mutual funds, life insurance policies, annuities, or municipal securities, even if these investments are purchased at an insured bank. Non-bank companies are also not FDIC-insured, and money sent to a non-bank company is not insured unless and until the company deposits it in an insured bank.
FDIC deposit insurance is designed to protect your money in the event of a bank failure. It is backed by the full faith and credit of the United States Government, and since the start of FDIC insurance in 1934, no depositor has lost any amount of their insured deposits.
To determine your deposit insurance coverage, you can use the FDIC's online tool called the Electronic Deposit Insurance Estimator (EDIE). This tool allows you to input the dollar amounts you have on deposit in an insured bank to determine your coverage. Additionally, you can contact the FDIC directly through their website, Information and Support Center, or by calling their toll-free number, 1-877-ASK-FDIC (1-877-275-3342).
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Deposit insurance rules
The Federal Deposit Insurance Corporation (FDIC) insures up to $250,000 per depositor, per institution, and per ownership category at member banks. FDIC deposit insurance covers all types of deposit accounts (checking, savings, money market savings, and CDs), as well as bank individual retirement accounts (IRAs). If an FDIC-insured bank or savings association fails, the FDIC protects depositors against the loss of their insured deposits. FDIC insurance is backed by the full faith and credit of the United States government.
If you have a single ownership account in one FDIC-insured bank and another single ownership account in a different FDIC-insured bank, you will be insured for up to $250,000 for your single-account deposits at each FDIC-insured bank. If you have two single ownership accounts (such as a checking account and a savings account) and an individual retirement account (IRA) at the same FDIC-insured bank, you will be insured up to $250,000 for the combined balance of the funds in the two single ownership accounts. You will be separately insured up to $250,000 for the funds in the IRA because IRAs are in a different account ownership category.
FDIC deposit insurance does not cover non-deposit investment products, even those offered by FDIC-insured banks. Additionally, FDIC deposit insurance does not cover the default or bankruptcy of any non-FDIC-insured institution. To ensure your bank is FDIC-insured, use the BankFind Suite search tool.
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Insured deposits
Bank of America offers its customers FDIC insurance for their deposits. The Federal Deposit Insurance Corporation (FDIC) is an independent agency of the United States government that insures deposits in banks and savings associations. If an FDIC-insured bank fails, the FDIC will protect depositors against the loss of their insured deposits. FDIC insurance is backed by the full faith and credit of the United States government, providing customers with peace of mind that their money is protected.
The FDIC insurance covers all types of deposit accounts, including checking, savings, money market savings, and Certificates of Deposit (CDs). It also covers bank individual retirement accounts (IRAs). The insurance limit is $250,000 per depositor, per insured bank, for each account ownership category. This means that if you have multiple accounts at Bank of America, each with a different ownership category, you are insured for up to $250,000 in each account. For example, if you have a checking account and a savings account, you are insured for up to $250,000 in each account, for a total of $500,000 in coverage.
It's important to note that Bank of America no longer participates in the FDIC's Transaction Account Guarantee Program as of January 1, 2010. However, coverage under the FDIC's basic deposit insurance rules still applies. This means that funds held in non-interest-bearing transaction accounts will be insured up to $250,000 per depositor, per insured bank, and per account ownership category.
To calculate your insurance coverage, you can use the FDIC's online Electronic Deposit Insurance Estimator (EDIE) tool available on their website. This tool will help you understand your level of insurance coverage and ensure that your deposits are fully protected.
In summary, Bank of America provides its customers with FDIC insurance to protect their deposits. The FDIC insurance covers a wide range of account types and provides up to $250,000 in insurance per depositor, per insured bank, and per account ownership category. By utilising the FDIC's tools and resources, customers can have confidence that their deposits are secure.
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Bank account insurance
The FDIC insurance covers various deposit accounts, including checking, savings, money market savings, and Certificates of Deposit (CDs). It also covers bank individual retirement accounts (IRAs), which are insured separately up to $250,000 per owner. This insurance is automatic and does not require any additional purchase or application by the depositor. It is important to note that not all accounts at a bank are eligible for FDIC insurance, and it is recommended to check with the bank to confirm coverage.
To determine the level of insurance coverage, depositors can use the FDIC's online Electronic Deposit Insurance Estimator (EDIE) tool, which provides detailed information about specific deposit insurance coverage. Additionally, the FDIC offers resources to help depositors understand their coverage, such as the "Your Insured Deposits" brochure and the BankFind tool, which provides information about FDIC-insured institutions.
It is worth mentioning that the FDIC insurance limit of $250,000 per depositor, per institution, and per ownership category is a standard across the industry. However, there are ways to maximise insurance coverage for those with deposits exceeding this limit. One approach is to open accounts at different FDIC-insured banks, as each bank is considered separately for insurance purposes. Another strategy is to utilise different ownership categories within the same bank, as deposits held in different categories are insured separately up to $250,000 each.
In summary, bank account insurance through the FDIC provides peace of mind to depositors by safeguarding their funds in the event of a bank failure. Bank of America customers can benefit from this insurance, ensuring their deposits are protected up to the specified limits. It is important for depositors to understand their coverage and explore options to maximise their insurance if needed.
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Frequently asked questions
The Federal Deposit Insurance Corporation (FDIC) insures up to \$250,000 per depositor, per institution, and per ownership category.
Bank of America does not participate in the FDIC's Transaction Account Guarantee program. However, coverage under the FDIC's basic deposit insurance rules still applies.
Calculate your insurance coverage using the FDIC's online Electronic Deposit Insurance Estimator (EDIE).
