The Federal Deposit Insurance Corporation (FDIC) is an independent agency of the United States government that protects the funds depositors place in banks and savings associations. FDIC insurance is backed by the full faith and credit of the United States government. Since the FDIC was established in 1933, no depositor has ever lost a single penny of FDIC-insured funds.
FDIC insurance covers all deposit accounts, including checking and savings accounts, money market deposit accounts and certificates of deposit. FDIC insurance does not cover other financial products and services that banks may offer, such as stocks, bonds, mutual fund shares, life insurance policies, annuities or securities.
The standard insurance amount is $250,000 per depositor, per insured bank, for each account ownership category.
1. What is the FDIC?
The FDIC – short for the Federal Deposit Insurance Corporation – is an independent agency of the United States government. The FDIC was created by Congress in 1933 to make the savings of millions of Americans safe and secure. The FDIC protects depositors against the loss of their insured deposits if an FDIC-insured bank or savings association fails. FDIC insurance is backed by the full faith and credit of the United States government but is totally funded by member banks’ premium assessments. Since the FDIC’s creation in 1933, no depositor has ever lost even one penny of FDIC-insured deposits.
2. What is the Purpose of FDIC Deposit Insurance?
The FDIC protects depositors’ funds in the unlikely event of the financial failure of their bank or savings institution. FDIC deposit insurance covers the balance of each depositor’s account, dollar-for-dollar, up to the insurance limit, including principal and any accrued interest through the date of the insured bank’s closing.
3. What is the FDIC insurance amount?
The basic insurance amount is $250,000 per depositor, per insured bank.
Single Accounts (owned by one person with no beneficiaries): $250,000 per owner
Joint Accounts (two or more persons with no beneficiaries): $250,000 per co-owner
IRAs and other certain retirement accounts: $250,000 per owner
Revocable trust accounts: Each owner is insured up to $250,000 for each unique eligible beneficiary named or identified in the revocable trust, subject to specific limitations and requirements
*These deposit insurance coverage limits refer to the total of all deposits that account owners have 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.
4. How can I access the FDIC’s deposit insurance products?
Go to www.fdic.gov and click on Deposit Insurance in the upper left-hand corner, then scroll down and click on What’s Covered? You will now be at the web page that contains all of the FDIC’s deposit insurance resource materials. All of our deposit insurance products are free. The best way to obtain free copies of all these resources is through our online order form.