Paul Sanchez
The Federal Deposit Insurance Corporation (FDIC) is an independent agency of the United States government that insures bank accounts in the event of bank failure. FDIC insurance is backed by the full faith and credit of the United States government. It was created in 1933 to promote public confidence in the banking system by insuring consumers' deposits. The FDIC guarantees bank customers against loss of up to $250,000 per depositor, per institution, and per ownership category. This limit applies to all account types combined within a single ownership category at a single bank. FDIC insurance covers deposit accounts, including checking and savings accounts, money market deposit accounts (MMDAs), and certificates of deposit (CDs). It's important to note that FDIC insurance does not cover all types of accounts and does not protect against losses due to fraud or theft.
| Characteristics | Values |
|---|---|
| Name of the federal insurance | Federal Deposit Insurance Corporation (FDIC) |
| Who does FDIC protect against? | Loss of insured deposits in the event of an FDIC-insured bank or savings association failure |
| Who does FDIC not protect against? | Loss due to fraud and theft |
| Who provides the insurance? | The FDIC |
| Who pays for the insurance? | The bank |
| Who is insured? | Bank customers |
| Is there a limit to the insurance? | Yes, $250,000 per depositor, per FDIC-insured bank, per ownership category |
| What is not insured by the FDIC? | Financial instruments, such as stocks, bonds, money market funds, cryptocurrency, U.S. Treasury securities (T-bills), safe deposit boxes, annuities, and insurance products |
| What happens if a depositor holds CDs from the assumed bank? | CDs are separately insured until the earliest maturity date after the end of the six-month grace period |
| How to determine if a bank is FDIC-insured? | Ask a bank representative, look for the FDIC sign at your bank, or use the FDIC's BankFind tool |
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What You'll Learn
The Federal Deposit Insurance Corporation (FDIC)
Deposit insurance is automatic for any deposit account opened at an FDIC-insured bank. Deposits are insured up to at least $250,000 per depositor, per FDIC-insured bank, per ownership category. Deposit insurance is calculated dollar-for-dollar, principal plus any interest accrued or due to the depositor, through the date of default. For example, if a customer had a CD account in her name alone with a principal balance of $195,000 and $3,000 in accrued interest, the full $198,000 would be insured. The FDIC does not insure all types of accounts. Financial instruments, such as stocks, bonds, money market funds, cryptocurrency, U.S. Treasury securities (T-bills), safe deposit boxes, annuities, and insurance products aren't insured by the FDIC.
FDIC deposit insurance covers all deposit accounts at insured banks up to the insurance limit, currently $250,000 per depositor, per bank, per ownership category, including principal and any accrued interest through the date of an insured bank's closing. Deposit accounts include checking accounts, savings accounts, CDs and MMDAs. The FDIC does NOT insure the money you invest in the following products, even if they were purchased from an FDIC-insured bank: stocks, bonds, and mutual funds including money funds, insurance and annuity products, the contents of safe deposit boxes, and investments backed by the U.S. government, such as Treasury securities.
The FDIC provides extensive resources for bankers, including guidance on regulations, information on examinations, legislation insights, and training programs. The FDIC also answers questions about federal deposit insurance coverage and handles complaints and inquiries about FDIC-insured state banks that are not members of the Federal Reserve System.
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Deposit insurance covers up to $250,000 per depositor
The Federal Deposit Insurance Corporation (FDIC) provides insurance for most bank accounts, although some banks do not have FDIC protection. The FDIC is an independent agency of the US government that protects bank depositors against the loss of their insured deposits in the event that an FDIC-insured bank or savings association fails. FDIC deposit insurance covers up to $250,000 per depositor, per FDIC-insured bank, per ownership category. This includes principal and any accrued interest through the date of the insured bank's failure.
Deposit insurance is calculated dollar-for-dollar, including principal plus any interest accrued or due to the depositor, through the date of default. For example, if a customer had a CD account in their name alone with a principal balance of $195,000 and $3,000 in accrued interest, the full $198,000 would be insured. The FDIC does not insure all types of accounts. For example, financial instruments such as stocks, bonds, money market funds, cryptocurrency, US Treasury securities (T-bills), safe deposit boxes, annuities, and insurance products are not insured by the FDIC.
Deposit insurance coverage is automatic when you open a deposit account at an FDIC-insured bank. You can confirm that your bank is insured by searching for it in the BankFind tool available on the FDIC website or by calling the FDIC. If you have accounts at different FDIC-insured banks, the limit applies at each bank: $250,000 per depositor for each account ownership category. You can calculate your specific insurance coverage amount using the Electronic Deposit Insurance Estimator (EDIE), a calculator available on the FDIC website.
The FDIC deposit insurance limit may be exceeded under certain ownership categories. For example, a joint account titled Jane Doe and John Smith would be insured up to $250,000 for both depositors for a total of $500,000. As of April 1, 2024, the maximum insurance coverage for a trust owner with five or more beneficiaries is $1,250,000 per owner for all trust accounts held at the same bank.
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FDIC deposit insurance covers all deposit accounts
The Federal Deposit Insurance Corporation (FDIC) provides insurance for most bank accounts, although some banks do not have FDIC protection. FDIC deposit insurance covers all deposit accounts at insured banks up to the insurance limit, which is currently $250,000 per depositor, per bank, per ownership category, including principal and any accrued interest through the date of an insured bank's closing. Deposit accounts include checking accounts, savings accounts, money market deposit accounts (MMDAs), and certificates of deposit (CDs). FDIC deposit insurance does not cover non-deposit investment products, even those offered by FDIC-insured banks.
FDIC insurance is backed by the full faith and credit of the United States government. It protects bank depositors against the loss of their insured deposits in the event that an FDIC-insured bank or savings association fails. FDIC deposit insurance protects bank customers in the event that an FDIC-insured depository institution fails. Bank customers don’t need to purchase deposit insurance; it is automatic for any deposit account opened at an FDIC-insured bank.
FDIC deposit insurance covers deposits in all types of accounts at FDIC-insured banks, but it does not cover non-deposit investment products, even those offered by FDIC-insured banks. Additionally, FDIC deposit insurance doesn’t cover default or bankruptcy of any non-FDIC-insured institution. FDIC deposit insurance only covers certain deposit products, such as checking and savings accounts, money market deposit accounts (MMDAs), and certificates of deposit (CDs).
FDIC insurance covers joint accounts owned in any manner conforming to applicable state law, such as joint tenants with the right of survivorship, tenants by the entirety, and tenants in common. To qualify for insurance coverage under this ownership category, all co-owners must be living people with equal rights to withdraw deposits from the account. The FDIC assumes that all co-owners' shares are equal unless the deposit account records state otherwise. The balance of a joint account can exceed $250,000 and still be fully insured. For example, if two co-owners jointly own a $350,000 CD and a $150,000 savings account at the same insured bank, the two accounts would be added together and insured up to $500,000, providing up to $250,000 in insurance coverage for each co-owner.
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.
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FDIC insurance doesn't cover all account types
The Federal Deposit Insurance Corporation (FDIC) is an independent agency of the United States government that protects bank depositors against the loss of their insured deposits in the event that an FDIC-insured bank or savings association fails. FDIC insurance is backed by the full faith and credit of the United States government. FDIC deposit insurance covers deposits in the event of a bank failure, but it does not cover losses due to fraud and theft. It also does not insure all types of accounts.
The FDIC covers deposit accounts and other official items such as cashier’s checks and money orders. The standard deposit insurance amount is $250,000 per depositor, per FDIC-insured bank, per ownership category. This includes checking accounts, savings accounts, money market deposit accounts (MMDAs), and certificates of deposit (CDs).
FDIC insurance does not cover all types of accounts. Financial instruments such as stocks, bonds, money market funds, cryptocurrency, safe deposit boxes, annuities, and insurance products are not insured by the FDIC. The FDIC also does not insure regular shares and share draft accounts of credit unions. Instead, these are insured by the National Credit Union Share Insurance Fund, administered by the National Credit Union Administration (NCUA).
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.
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FDIC insurance is automatic for deposit accounts
The Federal Deposit Insurance Corporation (FDIC) is an independent agency of the United States government that protects bank depositors against the loss of their insured deposits in the event that an FDIC-insured bank or savings association fails. FDIC insurance is backed by the full faith and credit of the United States government.
FDIC deposit 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. If you are interested in FDIC deposit insurance coverage, simply make sure you are placing your funds in a deposit product at the bank. FDIC insurance covers the principal and interest of an account, not exceeding the $250,000 limit per depositor, per FDIC-insured bank, and per ownership category.
FDIC deposit insurance covers all deposit accounts at insured banks up to the insurance limit, including principal and any accrued interest through the date of an insured bank's closing. Deposit accounts include checking accounts, savings accounts, certificates of deposit (CDs), and money market deposit accounts (MMDAs). FDIC insurance does not cover non-deposit investment products, even those offered by FDIC-insured banks. Additionally, FDIC deposit insurance doesn’t cover default or bankruptcy of any non-FDIC-insured institution. It also does not cover losses due to fraud and theft.
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.
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Frequently asked questions
The Federal Deposit Insurance Corporation (FDIC) is an independent agency of the United States government that protects bank depositors against the loss of their insured deposits in the event that an FDIC-insured bank or savings association fails.
The FDIC insures up to +$250,000 per depositor, per institution and per ownership category.
The FDIC covers deposit accounts such as checking accounts, savings accounts, money market deposit accounts (MMDAs), and certificates of deposit (CDs). It also covers other official items like cashier’s checks and money orders.
No, banks are not insured by default. They must apply for FDIC insurance, and most, but not all, banking institutions are insured by the FDIC. Credit unions, for example, are insured by the National Credit Union Administration (NCUA).
Banks will often advertise this protection, or you can ask a banker. FDIC-insured banks will also have the FDIC logo on their website, and you can use the FDIC's BankFind tool to access detailed information about insured institutions.
