FDIC Deposit Insurance Coverage
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FDIC Deposit Insurance Coverage

 



On October 3, 2008, FDIC deposit insurance temporarily increased from $100,000 to $250,000 per depositor through December 31, 2009. In May of 2009 President Obama signed a bill extending the $250,000 ceiling on Federal Deposit Insurance Corporation (FDIC) coverage through 2013.

The Federal Deposit Insurance Corporation (FDIC) is an independent agency of the United States government that protects against the loss of insured deposits if an FDIC-insured bank or savings association fails. FDIC deposit insurance is backed by the full faith and credit of the United States government. Since the FDIC was established, no depositor has ever lost a single penny of FDIC insured funds.

 

FDIC insurance covers funds in deposit accounts, including checking and savings accounts, money market deposit accounts and certificates of deposit (CDs). FDIC insurance does not, however, cover other financial products and services that insured banks may offer, such as stocks, bonds, mutual fund shares, life insurance policies, annuities or municipal securities. There is no need for depositors to apply for FDIC insurance or even to request it. Coverage is automatic.

 

To ensure funds are fully protected, depositors should understand their deposit insurance coverage limits. The FDIC provides separate insurance coverage for deposits held in different ownership categories such as single accounts, joint accounts, Individual Retirement Accounts (IRAs) and trust accounts.

 

Basic FDIC Deposit Insurance Coverage Limits*

 

 Single Accounts
 (owned by one person)		  $250,000 per owner**
 Joint Accounts
 (two or more persons)		  $250,000 per co-owner**

 IRAs and certain other

 retirement accounts

  $250,000 per owner
 Trust Accounts

 $250,000 per owner per beneficiary

 subject to specific limitations and
 requirements **


  * These deposit insurance coverage limits refer to the total of all deposits that an accountholder (or accountholders) has at each FDIC-insured bank. The listing above shows only the most common ownership categories that apply to individual and family deposits, and assumes that all FDIC requirements are met.

** The legislation authorizing the increase in deposit insurance coverage limits makes the change effective October 3, 2008 through December 31, 2009.

 

If you have questions about FDIC coverage limits and requirements, please visit http://www.myfdicinsurance.gov/, call toll-free 1-877-ASK-FDIC, or ask one of our Customer Service Representatives.