What is FDIC Insurance and how does it protect me?

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.

What bank accounts are covered by FDIC insurance?

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.

What are the standard maximum FDIC Insurance coverage limits?

Coverage limits generally stand at $250,000 per owner/entity across standard categories assuming all requirements are met.

Important Deposit Coverage Rules:

• The FDIC provides separate coverage for deposits held in different account ownership categories.
  
• Coverage limits refer to the total of all deposits an account holder has in the same ownership categories at each FDIC-insured bank.
• The breakdown below shows only the most common ownership categories that apply to individual and family deposits, assuming all FDIC requirements are met.