What Is FDIC Insurance?
The Federal Deposit Insurance Corporation (FDIC) is an independent U.S. government agency that protects depositors if their bank fails. Since its creation in 1933, no depositor has ever lost a penny of FDIC-insured funds.
Coverage Limits
FDIC insurance covers up to $250,000 per depositor, per insured bank, per ownership category. This means a single person can have more than $250,000 insured at the same bank if the money is in different ownership categories.
What's Covered
| Account Type | Covered? |
|---|---|
| Checking accounts | Yes |
| Savings accounts [blocked] | Yes |
| Money market [blocked] deposit accounts | Yes |
| Certificates of deposit (CDs) | Yes |
| Cashier's checks issued by the bank | Yes |
What's NOT Covered
| Product | Covered? |
|---|---|
| Stocks and bonds | No |
| Mutual funds | No |
| Life insurance policies | No |
| Annuities | No |
| Cryptocurrency | No |
| Safe deposit box contents | No |
Ownership Categories
Each ownership category gets its own $250,000 of coverage at the same bank:
- Single accounts: Owned by one person
- Joint accounts: Owned by two or more people ($250,000 per co-owner)
- Retirement accounts: IRAs and other self-directed retirement accounts
- Trust accounts: Revocable and irrevocable trust accounts
- Business accounts: Corporations, partnerships, and unincorporated associations
Example: Maximizing Coverage
A married couple at one bank could have:
- His single account: $250,000
- Her single account: $250,000
- Joint account: $500,000 ($250,000 each)
- His IRA: $250,000
- Her IRA: $250,000
Total insured: $1,500,000 at a single bank.
How to Verify Your Bank Is Insured
- Look for the FDIC sign at your bank or on their website
- Use the FDIC's BankFind tool at fdic.gov
- Check your bank statements for FDIC membership notation
Key Takeaways
- FDIC insurance covers up to $250,000 per depositor, per bank, per ownership category
- No depositor has ever lost FDIC-insured funds since 1933
- Stocks, bonds, mutual funds, and cryptocurrency are NOT covered
- You can significantly exceed $250,000 in coverage using different ownership categories
- Always verify your bank is FDIC-insured before opening an account
