July 26, 2016 | Return to Financial Education
FDIC Deposit Insurance Coverage
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. It is funded entirely by the banking industry, as banks pay quarterly insurance premiums into the fund. Since the FDIC was established in 1933, no depositor has ever lost a 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.
The FDIC provides separate coverage for deposits held in different account ownership categories. Depositors may qualify for more coverage if they have funds in different ownership categories and all FDIC requirements are met.
FDIC insurance coverage limits by account ownership category include $250,000 per owner for single accounts (owned by one person) and certain retirement accounts, including IRAs. For joint accounts owned by two or more persons, the coverage limit is $250,000 per co-owner. For revocable trust accounts, the limit is $250,000 per owner per beneficiary up to 5 beneficiaries (more coverage available with 6 or more beneficiaries subject to specific conditions and requirements). For irrevocable trust accounts, it’s $250,000 for the non-contingent, ascertainable interest of each beneficiary.
The coverage limit for corporation, partnership, and unincorporated association accounts is $250,000 for the non-contingent, ascertainable interest of each beneficiary. For employee benefit plan accounts, the coverage is $250,000 for the non-contingent, ascertainable interest of each plan participant. Government accounts are covered for $250,000 per official custodian (more coverage available subject to specific conditions).
If you’d like to calculate your deposit insurance coverage, the FDIC has a calculator/estimator on their website that’s easy to use. It’s called EDIE (Electronic Deposit Insurance Estimator) and can be accessed at
. If you have any questions about coverage limits and requirements, you can visit www.fdic.gov, call toll-free at 1-877-ASK-FDIC, or you can always contact your financial institution.