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.
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
- Municipal securities
- Safe deposit boxes and their contents
- U.S. Treasury bills, bonds, or notes
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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