How Your FDIC Insurance Works for You

See Important Information Below

When you’ve worked hard to build up your finances, keeping them safe and secure is a great concern. Do you know the ways you’re already protected, and how to further strengthen those safeguards?

There’s a lot of information out there, and it can be confusing to find what’s right for you. To help you out, we’ve compiled as much as we could in one place. Remember, everyone’s financial situation is unique, and you should always consult with a trusted financial advisor before making major decisions.

First of all, when you have your money at an FDIC-insured bank, there’s a built-in layer of security provided. In fact, the Federal Deposit Insurance Corp. has been insuring deposits in covered banks and savings associations since 1933.

There are many misconceptions about how much the FDIC insures. Luckily, there are many resources available online (including the FDIC itself) that can guide you to ways of maximizing your coverage.

The FDIC states that “the standard insurance amount is $250,000 per depositor, per insured bank, for each account ownership category.” However, when you dig into the details, there’s more to this than meets the eye. Because the FDIC bases that coverage on how the accounts are owned and titled, the FDIC points out there are ways to have more than $250,000 of deposit insurance coverage at one FDIC-insured bank.

If a covered institution fails, the FDIC insures funds in CDs, checking, savings and money market accounts. It also covers other types of accounts, such as IRAs and trust accounts. Read through the resources below from the FDIC for some common coverage scenarios. You can also check out the FDIC Deposit Insurance brochure for details about your specific coverage.


According to the FDIC deposit insurance overview, if you are an individual with savings, checking, money markets or CDs at one bank, the total is added up, and you are insured up to $250,000 of that total. The FDIC considers an IRA to be in a separate ownership category, however, and it is insured separately from an account owned by an individual. So if you have $250,000 vested in individual accounts and another $250,000 vested in IRAs, both will still be insured, up to $500,000.

In addition to individual (single) and certain retirement account ownership categories, the FDIC also considers joint accounts in a separate ownership category.

Joint account owners

For two people (for example, a married couple) with their own deposit accounts as well as their own IRA accounts, each individual can get insurance for $500,000, as described in the scenario above. Combined, that is $1 million in total coverage. Further, the FDIC points out: “If a couple has a joint money market deposit account, a joint savings account, and a joint CD at the same insured bank, each co-owner's shares of the three accounts are added together and insured up to $250,000 per owner, providing up to $500,000 in coverage for the couple's joint accounts.” So, with the addition of this $500,000, the couple’s total coverage comes to $1.5 million.

In addition to managing account ownership, your individual financial scenarios may allow you to find more ways to potentially boost your FDIC coverage. To find these, make sure to research the FDIC website for the full details. No matter your situation, always speak to your financial advisor for information about your FDIC coverage and making smart plans for your money.

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