Insuring your deposits through the FDIC

Body (Limited)

The Federal Deposit Insurance Corporation (FDIC) is an independent agency of the U.S. government that protects you against the loss of your bank deposits accounts—including checking, savings and CDs. There is no need to apply for FDIC insurance—coverage is automatic and backed by the full faith and credit of the U.S. government. The standard insurance amount is $250,000 per depositor, per insured bank, for each account ownership category.

Individuals can maximize their FDIC coverage

The FDIC deposit insurance fully protects the deposits in each "ownership category." Common ownership categories include individual accounts, joint accounts, and revocable trust accounts, such as "payable on death" or "in trust for" accounts. IRA's are a separate ownership category and are covered up to $250,000 for each IRA account owner, increasing the FDIC deposit coverage.

For example, with careful planning a family of three may obtain deposit insurance coverage up to $2,500,000 on their accounts as follows:

Ownership Category FDIC Coverage Ownership Examples
Individual Account $250,000 Wife
$250,000 Husband
$250,000 Child
Joint Account $250,000 Wife OR Husband
$250,000 Wife OR Child
$250,000 Husband OR Child
Revocable Trust Account
(also known as POD)
$250,000 Wife in Trust for Husband
$250,000 Husband in Trust for Wife
$250,000 Wife in Trust for Child
$250,000 Husband in Trust for Child

Establishing accounts under different forms of account ownership may have significant tax or estate planning impacts. Review your plans with an attorney or qualified financial advisor.

More from the FDIC

Visit the FDIC's official website to learn more plus try out their easy-to-use Electronic Deposit Insurance Estimator. You can also speak with an FDIC information specialist, Monday through Friday from 8:00am to 8:00pm EST by calling 877-275-3342 toll free.