FDIC Insurance

When it comes to the Federal Deposit Insurance Corporation (the FDIC), we receive a lot of questions about whether certain accounts are insured. The coverage depends on whether your financial product is a deposit product and whether your bank is FDIC-insured.

Coverage

Here is the coverage as listed on the FDIC website (www.fdic.gov).

                 Items that the FDIC does cover:

• Checking accounts
• Negotiable Order of Withdrawal accounts
• Savings Accounts
• Money Market Deposit Accounts
• Time deposits such as certificates of deposits (CDs)
• Cashier's checks, money orders, and other official items issued by a bank.

                Items that the FDIC does not cover:

• Stock investments
• Bond investments
• Mutual funds
• Life insurance policies
• Annuities
• Municipal securities
• Safe deposit boxes and their contents
• U.S. Treasury bills, bonds, or notes

Limits

The standard insurance amount is “$250,000 per depositor, per insured bank, for each account ownership” (Federal Deposit Insurance Corporation, 2020).

For example, if you own a single checking account at an insured bank, you are insured up to $250,000 per owner. If you and another individual own a joint checking account at an insured bank, you are insured up to $250,000 per co-owner.

Here is a list of the coverage limits by account ownership category.

• Single Accounts - $250,000 per owner
• Joint Accounts - $250,000 per co-owner
• Certain Retirement Accounts (includes IRA's) - $250,000 per owner
• Revocable Trust Accounts - $250,000 per owner per unique beneficiary
• Corporation, Partnership and Unincorporated Association Accounts - $250,000 per corp., partnerships or unincorporated association
• Irrevocable Trust Accounts - $250,000 for the non-contingent interest of each unique beneficiary
• Employee Benefit Plan Accounts - $250,000 for the non-contingent interest of each plan participant
• Government Accounts - $250,000 per official custodian (more coverage available subject to specific conditions)

*This information is provided by the Federal Deposit Insurance Corporation (FDIC). Source used: www.fdic.gov

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If you want to ensure your assets are given outright upon passing, schedule a free consultation to consider what is best for you and those you love. Contact us using the resources below.

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