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.
As your financial advisor, we are here to help make sure your deposits are safeguarded with FDIC insurance. Your banker is experienced in how to configure your accounts to maximize your FDIC protection. In addition, your banker is trained on the recent updates to FDIC insurance and can explain how these changes may affect your accounts. Below is an overview of the most recent changes put in place by the FDIC:
Maximum Deposit Insurance Amount Permanently Raised to $250,000
On July 21, 2010, President Barack Obama signed the Dodd-Frank Wall Street Reform and Consumer Protection Act, which, in part, permanently raises the current standard maximum deposit insurance amount to $250,000. The FDIC insurance coverage limit applies per depositor, per insured depository institution for each account ownership category.
For more information about FDIC insurance coverage, visit www.fdic.gov.
Know Your FDIC Coverage Limits
To ensure funds are fully protected, depositors should understand their coverage limits. The FDIC provides separate coverage for deposits held in different account ownership categories. The coverage limits shown in the chart below refer to the total of all deposits that an accountholder has in the same ownership categories at each FDIC-insured bank.
|FDIC Deposit Insurance Coverage Limits
by account ownership category
owned by one person
$ 250,000 per owner
owned by two or more persons
|$ 250,000 per co-owner|
|Certain Retirement Accounts
|$ 250,000 per owner|
|Revocable Trust Accounts||$ 250,000 per owner per beneficiary up to 5 beneficiaries (more coverage available with 6 or more beneficiaries subject to specific limitations and requirements)|
|Corporation, Partnership and Unincorporated Association Accounts||$ 250,000 per corporation, partnership or unincorporated association|
|Irrevocable Trust Accounts||$ 250,000 for the non-contingent, ascertainable interest of each beneficiary|
|Employee Benefit Plan Accounts||$ 250,000 for the non-contingent, ascertainable interest of each plan participant|
|Government Accounts||$ 250,000 per official custodian|
To calculate your deposit insurance coverage, use the FDIC's Electronic Deposit Insurance Estimator (EDIE) at www.fdic.gov/edie.